Young people in Tennessee need to be careful with credit cards. When they take on credit card debt, it can be difficult for them to get out of debt because of the high rates of interest that card issuers charge.
When a Tennessee resident is diagnosed with cancer, it's important to concentrate on overcoming the disease. However, a patient may also find that financial worries continue to haunt them throughout the treatment process. Indeed, there are good reasons for these concerns; even people with health insurance often struggle to pay their medical bills during cancer treatment. Prescription drugs can cost in the thousands of dollars and treatment can amount to $150,000 or more.
Some people in Tennessee who are struggling with student loan debt may find it easier to discharge those debts in bankruptcy if a federal bill that has been introduced is successful. Discharging student loans has gradually become more difficult since the 1970s, and currently, in order to be eligible for discharge, student loan payments have to be causing "undue hardship".
If a Tennessee resident fails to pay a credit card balance, the card issuer may write it off. According to a representative from Capital One, a degradation in customer credit quality has led to an increasing number of charge-offs. It has also lead to an increasing number of credit accounts becoming 30 days past due. The charge-off rate in the United States was 3.82% for the first quarter of 2019. However, the charge-off rate at Capital One was 5.04%.
Some Tennessee residents may be able to file for bankruptcy to get a better handle on their finances. Both individuals and businesses can file for protection from creditors, and there are many different types of bankruptcy to choose from. Chapter 7 bankruptcy is known as a liquidation bankruptcy. It involves selling some or all of a debtor's nonexempt property in an effort to raise money to pay off creditors.
Debtors in Tennessee and throughout the country may be contacted by a debt collection agency. While there are many tactics that they can use to collect payment, there are also things they cannot do in an effort to obtain a debt. It is important for an individual to understand his or her rights under the Fair Debt Collection Practices Act, or FDCPA. It prohibits debt collectors from using abusive language or from contacting debtors at work.
Chapter 13 bankruptcy is sometimes referred to as reorganization bankruptcy. It allows a person to pay off debts over a predetermined period of time, typically three to five years. It is ideal for a wage earner with good income who is having trouble making payments on time. One of the advantages of a Chapter 13 bankruptcy is that it allows a debtor to keep certain assets, such as their home and car.
Those between the ages of 18 and 29 owe $1.05 trillion to creditors. Tennessee residents and others in this age group have student loan, credit card and auto loan balances in addition to other types of debt. However, they owe less overall than other age groups. Those who are between the ages of 30 to 39 have a collective debt balance of $2.9 trillion.
Some people in Tennessee who are facing repossession of their vehicles might consider filing for Chapter 13 bankruptcy. This would potentially allow them to restructure a payment plan and keep the vehicle. However, there may be other alternatives that the person can try before bankruptcy.
If a Tennessee resident is struggling to keep up with a mortgage payment, it may be possible to ask for a loan modification. However, there is no guarantee that a lender will allow this to happen. If a lender does not want to modify the terms of a home loan, a homeowner could choose to file for bankruptcy. This may postpone the foreclosure process, which generally begins two or three months after a missed mortgage payment.