According to the National Consumer Law Center, over half of all accounts in collections are medical debts. Tennessee residents who aren't sure if they owe a medical debt attributed to them should first contact their insurance company to confirm that it is legitimate. If the bill is legitimate, it may be possible to negotiate a lower balance. Individuals can use a medical debt advocate to help with negotiations.
When a person in Tennessee or any other state files for bankruptcy, he or she is usually granted an automatic stay of creditor actions. However, this stay can be violated if a creditor didn't know about the bankruptcy or wasn't aware of the law. In the event that the creditor knew about the bankruptcy, any violation of the stay could be considered willful.
According to one report, 43 million people around the United States who have credit cards believe that having a balance can improve their credit scores. The report details the result of a June 2018 survey that had 1,000 adult respondents.However, according to one senior industry analyst, this is a myth. While how close individuals come to charging up their spending limit is included in the five main benchmarks that create a credit score, having a credit card balance is not.
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.
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.
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.
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.
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.
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.
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.