Lefkovitz & Lefkovitz
Nashville Office
615-686-2279
Cookeville Office
931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs
We help individuals and businesses find the right solution to their money problems.

chapter 13 Archives

Is debt consolidation a good idea?

Tennessee residents who struggle to pay off their financial obligations often consider seeking relief through certain debt management programs as an alternative to bankruptcy. One option is that of debt consolidation, in which the debtor either obtains a low-interest loan to pay off all debt at once, or transfers balances to a zero percent interest credit card.

Helping Tennessee residents understand bankruptcy

An individual or business entity may opt to file for bankruptcy as a way to handle an issue related to debt or other financial difficulties. One of the most important things to know about bankruptcy is that there are different options available. For instance, individuals might benefit most from Chapter 7 or 13 bankruptcy while businesses generally opt for Chapter 11.

Equifax makes subtle change to reporting policy

Typically, Tennessee residents would need to contend with a Chapter 13 bankruptcy on their credit report for seven years. However, in the past, those who had an Equifax credit report may have had to deal with that bankruptcy for 10 years. This may have been true for those who failed to complete their Chapter 13 plan, which isn't an uncommon occurrence.

Buying or renting a home after Chapter 13

Tennessee residents who file for Chapter 13 bankruptcy may know that doing so will impact their credit for a significant period of time. This type of protection from creditors is available to anyone with unsecured debts of $394,725 and secured debts of less than $1,184,200. While it may be more difficult to rent or buy a home after a bankruptcy, it is still possible to do so.

Limited relief coming to people with medical debts

Reforms to credit reporting methods might help some consumers in Tennessee. Their medical debts that went to collections when insurance companies took too long to pay could be removed. As part of a settlement with state attorneys general, three major credit bureaus agreed to wipe clear medical debt collections that insurers eventually paid. The settlement also establishes that credit bureaus will wait 180 days before placing unpaid medical bills on people's credit reports.

Fees and other charges related to a bankruptcy filing

There are many fees that a Tennessee consumer may have to pay when filing for bankruptcy. For instance, it may cost $1,250 to hire an attorney, and that money often needs to be paid in advance. The filing fee itself can range from $275 to $335 depending on what type of case a person chooses to pursue. Those who wish to appeal a decision made by a bankruptcy court may have to pay nearly $300 to do so.

Consumer debt totals higher than ever

Tennessee residents may be surprised to learn that Americans are now carrying a total consumer debt load of $12.8 trillion. That figure is a new record high, and it tops the $12.7 trillion in consumer debt carried by Americans in 2008. Auto and student loan debt has increased significantly while credit card debt is also at a level not seen since 2009.

Consumer debt on the increase

Many individuals and families in Tennessee struggle with their personal finances. in addition to trying to afford necessities, they also may be dealing with large amounts of personal debt. Recent research into the debt loads carried by many Americans show that this struggle may continue for many years.

Dangers of debt consolidation loans

When deeply in debt, some Tennessee residents may try to avoid bankruptcy by consolidating their bills via another method. Debt consolidation loans are a common method, as are assets like retirements accounts or home equity lines of credit. These strategies may save money by lowering interest rates, but they rarely solve an individual's real debt problem.

How retirement plans are treated in personal bankruptcy cases

Tennessee residents who are struggling with overwhelming bills may pursue debt relief by filing Chapter 7 or Chapter 13 bankruptcy petitions. While these individuals may be most concerned with their immediate financial situations and making ends meet, they should also be aware of how personal bankruptcies can impact long-term investments like 401(k) and IRA retirement plans.

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

Phone: 931-400-2218
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

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