Every year, many Tennessee residents find themselves trapped in a financial hole with a load of debt. To make matters worse, this debt keeps accumulating interest every day, meaning that the hole only gets deeper with each passing month. These debtors stand to gain from learning a few tips and tricks that might help them find financial recovery.
Once a consumer disputes a debt according to the requirements of the Fair Debt Collection Practices Act, debt collectors and third-parties must cease collection activities. The Court of Appeals for the 6th Circuit, of which Tennessee is a part, ruled that third-party collections that were set in motion by the debt collector must cease when the consumer disputes the debt. The case involved pre-foreclosure activities by third parties, but it is likely that lawyers for debtors will argue it applies to all third-party collections activities.
Most of us hate the feeling of not being able to repay a debt. If you're struggling to make payments and collection agents are harassing you, threatening to take your assets or bothering your friends, family members or neighbors, it's easy to become depressed and/or anxious.
In September 2018, there were more than 770,000 bankruptcy filings in the United States. Of those cases filed in Tennessee and elsewhere, 97 percent were consumer bankruptcy filings. The number of cases filed was down from the roughly 1.6 million filed in September 2010. However, the downtrend in bankruptcy filings may be related to the cost of filing. It may also be related to the fact that many people don't have assets to protect.
There are many signs that a Tennessee resident may have too much credit card debt. For instance, if they are using credit cards to pay off other credit cards, that is likely a problem. Other signs include if card balances are maxed out or if payments are higher than the debtor's other bills. Those who have a high debt-to-income ratio should also check to see if their credit card debt is causing the problem.
In 2017, there were 789,000 bankruptcy filings, which were the second-lowest since 1990. That compares to the 1.6 million filings in 2010 in the aftermath of the Great Recession. However, the decline in bankruptcy filings hasn't been uniform for all age groups. Older Americans in Tennessee and throughout the country are filing for bankruptcy at a higher rate than in previous years. There are several reasons as to why this may be the case.
Yes, it is. If you qualify for it. Now that we have an answer, let's talk about the relationship between recessions and bankruptcies.