An increasing number of senior citizens in Tennessee and across the country are facing financial crises up to the point of filing for bankruptcy, statistics show. More seniors than ever before are seeking personal bankruptcy, with that number doubling since 2013. Since 1991, there has been a five-fold increase in the number of seniors in the bankruptcy system. Over 12 percent of filers for bankruptcy are seniors, while only 2.1 percent of people seeking bankruptcy were seniors in 1991.
Business owners in Tennessee with bankruptcies on their records still could have opportunities to obtain new loans. People who have rebuilt their credit scores might secure financing from some institutions. Lenders also give less weight to bankruptcies that occurred years ago.
Tennessee residents whose credit scores have been negatively impacted by their substantial debt may not see a significant impact on their scores if they file for bankruptcy. However, depending on the type of bankruptcy that is filed, it may be 7 to 10 years before they may be approved for new credit accounts such as a home loan.
According to a report from Lending Tree, 43 percent of Americans who filed for bankruptcy had a credit score of 640 or higher a year after their filing. That number increased to 65 percent for those who were two years removed from a bankruptcy. One of the most effective ways to rebound after a bankruptcy is to pay bills on time. It shows lenders that a person has learned from his or her mistakes.
When people in Tennessee are struggling with insurmountable debt, they may consider personal bankruptcy as an option to find relief and escape from a crushing financial situation. However, they may also be concerned about the impact of bankruptcy on their credit and ability to borrow in the future. While 700,000 Americans filed for bankruptcy in 2017, there can be serious impacts, including a reduction in one's credit score.
Residents of Tennessee might consider bankruptcy to be a last resort solution to debt. However, in some cases, bankruptcy could actually be a smart choice. The stigma associated with bankruptcy often causes people to avoid it by taking other steps to pay off debts. But some of those, experts say, could be more harmful than bankruptcy, like using retirement savings to pay bills.
The rules associated with filing for bankruptcy in Tennessee can be complicated. For example, a tax debt can be discharged in a bankruptcy under certain circumstances. However, this depends on the type of taxes owed, the priority the debt is given and how old the debt is. As a general rule, a person cannot discharge tax debt if it is in an effort to evade taxes owed.
While nobody wants to file for bankruptcy, it can be a way to help a person overcome financial issues such as a medical expense or job loss. Those in Tennessee or elsewhere who need to file should work with a financial adviser to make a plan that will help them get through the bankruptcy. Acknowledging that a filing is necessary can be better than allowing money problems to get worse.
The number of people who file for bankruptcy in Tennessee and throughout the country tends to increase in March and April. Reportedly, this is because those who have thought about bankruptcy finally have the money they need to hire an attorney. While it is possible to file on a pro se basis, individuals who have legal representation generally obtain a better result in a Chapter 7 bankruptcy case.
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?