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

chapter 13 Archives

Understanding debt types

Many people living in Tennessee and around the country regard debt as a negative thing. However, the reality is that most people at one point or another will go into debt, often for good reasons. Instead of fearing debt, it is often best for people to take a more balanced look at the reasons, both good and bad, for borrowing money or using credit.

Why people wait so long to file for bankruptcy

Tennessee residents who have medical, credit card or any other type of debt that can be discharged through bankruptcy should file as soon a possible. This is also true for those who have a debt-to-income ratio that is higher than 40 percent. The longer a person waits to file, the less likely it is to get a fresh financial start because of asset depletion. In some cases, individuals don't even buy food to help avoid bankruptcy.

What to know about filing for Chapter 13 bankruptcy

When an individual in Tennessee is struggling to pay his or her debt, it may be possible to file for Chapter 13 bankruptcy. Debts are repaid according to a plan approved by the court, and a plan must be submitted within 15 days of filing for bankruptcy. A judge will make a decision as to whether to confirm the plan within 45 days of a meeting with creditors. Creditors then have 25 days to object to a plan.

How to purchase a vehicle while in Chapter 13 bankruptcy

When Tennessee residents file for Chapter 13 bankruptcy, they are given either three or five years to complete the repayment program. During this length of time, it is common for someone to need a new vehicle. Fortunately, it is possible to finance a new car while going through bankruptcy. However, the purchase will require approval from the court.

Understanding Bankruptcy

In 2015, Tennessee had the highest rate of bankruptcy filings in the nation; as a matter of fact, the number of filings there was twice the national average. Ergo, the citizens of this fine state are no strangers to the terror that comes with the possibility of not being able to meet their obligations. Moreover, the entire process of filing for bankruptcy can be confusing given the amount of legal red tape surrounding the whole process. For instance, plenty of people are confounded by the difference between Chapter 7 and Chapter 13 bankruptcy.

Defaults increase for store credit card payments

For many people in Nashville, store-brand credit cards have led to debt that is increasingly difficult to manage. Delinquency rates on these types of cards have reached their highest level in seven years, according to Equifax, the credit reporting agency. The percentage of accounts in default for at least 60 days has risen to 4.65 percent, an increase from 4.08 percent in March 2017. This is the highest level of default on these types of credit card accounts have seen since early 2011.

How credit card debt impacts personal finances

According to a report from Experian, the average credit card debt in America is $6,354. In Tennessee, the average credit card debt is $5,975. On average, Americans carry 3.1 credit cards to go along with 2.4 retail cards. While many people use credit cards to accumulate rewards points or other perks, it is a good idea to pay the balance off each month. The report found that 43 percent of those who have a balance carry it from one month to the next.

How rising interest rates impact consumers

While a strong economy offers many benefits to Tennessee residents, it can also lead to higher interest rates and more debt. As the economy strengthens, individuals may first accrue more debt than they can actually afford to pay off in a timely manner. After they acquire the debt, rising interest rates push monthly payments higher, which can make them harder to keep up with.

Some misconceptions about bankruptcy and credit

When people in Tennessee file for bankruptcy, it does not necessarily mean they will be unable to rebuild their credit again. A Chapter 7 bankruptcy stays on the credit report for 10 years, but a Chapter 13 bankruptcy remains there for only seven. Furthermore, liens, judgments and some other debts discharged in bankruptcy also fall off the report after seven years.

American credit card debt on the rise

Americans, including Tennessee residents, are racking up a lot of debt according to a new report by WalletHub. In 2017, U.S. consumers accumulated $92.2 billion in credit card debt, which is the most in 10 years. They also added nearly $68 billion in credit card debt in the final quarter of last year, which is the highest quarterly amount in three decades. Overall, the Federal Reserve estimates that Americans currently owe more than $1 trillion in outstanding credit card balances.

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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
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