Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

November 2019 Archives

Medical debt pushes many toward bankruptcy

Over 137 million Americans in Tennessee and nationwide are struggling with the crushing weight of medical debt. Despite widespread concern about the broken nature of the nation's health care system and the passage of the Affordable Care Act, people continue to struggle to make ends meet or cover basic health costs, especially when emergency care is involved. According to research, the primary reason people would cash in their retirement funds or 401(k) plans, even taking a major tax hit, is to pay off medical bills that they otherwise cannot afford. In addition, two-thirds of all personal bankruptcies across the country are at least partially linked to medical bills that people cannot afford to pay.

Avoiding extra debt on Black Friday

Every year, people in Tennessee flock to the stores on Black Friday and head to their favorite websites on Cyber Monday in the hopes of saving money on holiday gifts and other products. While the deals offered on Black Friday can be appealing, they can contribute to ongoing and unrepayable debt. There are a few tips that credit counselors offer to help people resist the temptation to purchase more than they can pay for, even when exceptional savings are on offer. First, experts advise making a specific list and a budget for the items a person wants.

Medical debt causing older Americans to go bankrupt

Roughly 12% of those who file for bankruptcy in Tennessee and other states are 65 and older. The rate was only 2% in 1991, and there are several reasons why older Americans are doing so more frequently. Generally speaking, older people are less likely to work, which may make it harder to pay their medical bills. Of those over age 65 who file for bankruptcy, 60% do so because they can't afford to repay a medical debt.

Bankruptcy may help debtors avoid tax bills

Until 2018, homeowners in Tennessee could cancel up to $2 million in mortgage debt without incurring a tax bill. This was true for those who lost a primary residence through a short sale or foreclosure. However, this perk expired at the end of 2017 and is unlikely to be renewed because of the political climate in Washington. Therefore, those who have a home loan balance forgiven or canceled may need to claim it as income on a tax return.

Is it even possible to discharge your student loans?

Student loan debt is a burdensome problem for which there is no easy solution. Decades of teaching students that the only real source of upward mobility came from a college diploma has resulted in increased demand for college admissions and a drastic rise in the number of people carrying student loan debt in pursuit of an education and a good career.

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Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
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Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

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