Many Tennessee residents understand the importance of saving for retirement. One of the most popular ways to do that, having a 401(k) retirement plan, was recently the subject of a decision rendered by a U.S. bankruptcy judge. The ruling allows people who are in Chapter 13 bankruptcy to deduct contributions to their 401(k) from their repayment plan, even if they haven't made those contributions within six months.
Tennessee residents might be interested in some good news about America's financial situation. According to the Administrative Office of the U.S. Courts, bankruptcy filings have hit a 10-year low. The rate of bankruptcy filings has been on a downward trend in recent years, but experts advise caution, saying that the rate of decline is actually slow and could turn around again in the near future.
To qualify for Chapter 13 bankruptcy, a Tennessee resident needs to have secured debts of equal to or less than $1,149,525. Furthermore, that person or anyone else in America with unsecured debts of greater than $383,175 cannot file for Chapter 13 bankruptcy. These limits were established in 1978 to make sure that those who have multiple properties would file for Chapter 11 instead of Chapter 13 bankruptcy.
For people in Tennessee facing crushing debt and other serious financial problems, bankruptcy can be a way to get a fresh start. However, there is an upper limit on the amount of debt that an individual can have to qualify for Chapter 13 bankruptcy. People who have secured debt greater than $1,149,525 or unsecured debt greater than $383,175 are excluded from filing for Chapter 13.
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.
Bankruptcy is a loaded topic. Many people have strong opinions about what it is and whether it's even ethical. But since they may be missing important information about bankruptcy, lots of struggling consumers believe lies that keep them from enjoying the incredible benefits - we can call it financial magic - that a Chapter 7 or Chapter 13 filing can unlock.Being in debt feels horrible, especially when the debt comes from something beyond your control, like an income loss, an illness or a divorce. Are you letting any of these lies hold you back from getting the debt relief you want?
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.
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.
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.
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.