For Tennessee residents and others across the country, medical debt is the most common reason to file for bankruptcy. Of those who have insurance and are under age 65, approximately 20 percent say that they have trouble paying medical costs. Although seniors are most likely to have health issues, members of Generation X have the highest levels of medical debt. A person in this generation has a medical debt load of $19,670 on average.
A series of bankruptcy court decisions could signal an impending shift in the way Tennessee courts treat residential mortgages. In a number of cases, Ohio bankruptcy judges greatly expanded a debtor's ability to "cram down" a mortgage on their primary residence. This marks a stark change from how most courts treat these mortgages.
A survey by the Kaiser Family Foundation found that approximately 33 percent of people around the country have trouble paying their medical bills. Tennessee patients who have used a medical credit card to pay for these expenses may not be fully aware of the consequences. One reason is that people sometimes sign up for these types of cards without fully understanding the terms.
Many Tennessee consumers struggle with multiple types of debt, including credit card bills, student loans, medical bills and unpaid taxes. According to one report that compared how different generations were managing their debt, members of Generation X are struggling more than baby boomers and millennials.
Many Tennessee consumers are overwhelmed by their debts and believe that they will never be able to pay them off. However, some of them who have substantial levels of debt have several options to try to repay them and to improve their credit scores.
Some people in Tennessee may not realize that there are errors on their credit reports until they attempt to get a loan or a job. They could be denied the loan or even a job because of errors that are not their fault. One study found that there were more 120 million confirmed credit report errors between 2014 and 2016.
Creditors in Tennessee may need to make themselves aware of changes to existing bankruptcy laws. These changes may impact those who have secured claims, unsecured claims or lien judgments in a Chapter 13 case. One important change relates to filing a proof of claim. Failure to do so may result in not being included in a debtor's Chapter 13 repayment plan. However, liens a creditor may have do not go away merely because a proof of claim is not filed.
Debtors in Tennessee who are considering filing for bankruptcy may be interested to learn the changes that have been made to the federal rules of bankruptcy procedure. The changes, which became effective on December 1, 2017, also include a new plan form for Chapter 13 bankruptcy.
For Tennessee residents who are struggling with credit card debt, a hike in interest rates can make paying that debt off even more difficult. However, there are strategies they can use to reduce interest rates.