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Knoxville Bankruptcy Law Blog

When you file Chapter 13, you must also pay your taxes

According to the Internal Revenue Service, Chapter 13 is the form of bankruptcy individual filers generally choose if they have not been able to pay their back taxes.

If Chapter 13 appears to be the right option for you, be prepared to square your bill with the IRS.

Holiday travel expenses may leave many in search of debt relief

The time is approaching when many individuals in Tennessee will get together with family and friends and celebrate the holiday season. For many, this also means creating a schedule and budget for holiday traveling. With recent reports indicating that many plan to use credit accounts to cover their expenses, holiday travel costs could leave some families searching through the available options for debt relief.

Recent studies indicate that just under half of all Americans surveyed said they plan to spend money on expenses such as hotel rooms and flights over the holiday season. These studies indicate that the average person could spend as much as $1,500 on travel-related expenses. With many individuals planning to use credit cards to cover their needs, a holiday trip could leave many facing significant financial concerns.

Knowing the options when dealing with high levels of medical debt

Visiting a medical facility for treatment can be an intimidating experience, and in some cases, it may also be unavoidable. Unfortunately, the high costs of care could place a person in Tennessee in a significant financial bind and leave him or her desperately searching for relief. While there might be options available for those facing overwhelming amounts of medical debt, some may be uncertain of how best to handle the situation.

Whether stemming from an unexpected trip to an emergency room or from a scheduled appointment, the financial ramifications of pursuing medical care can be substantial. While the initial fees can be staggering, in some cases, the amount a person owes could be negotiable. Those who struggle to get by due to the presence of medical bills could benefit from reaching out and attempting to negotiate a reduction in payments or set up a payment plan.

Debt relief: Even healthy financial choices involve certain risks

With the stigma associated with debt, many individuals in Tennessee may seek to avoid taking on certain financial responsibilities at all costs. However, experts suggest that there are certain scenarios in which taking on debt could be a healthy financial decision. Unfortunately, the consequences to falling behind on these obligations may still leave one desperately searching through the available options for debt relief.

While student loans are one of the most common forms of financial strain, experts indicate that the benefits of pursuing a higher education may outweigh the costs. A college education could increase one's opportunities at advancing his or her career exponentially. Another form of debt that many experts consider healthy pertains to home mortgages, especially if the value of a home has a record of seeing increase over time.

Debt relief: Assuming responsibility for a partner's debts

Dealing with high amounts of debt can be troublesome under any circumstance. There are a variety of scenarios that could lead a person in Tennessee into times of financial strain, such as a medical emergency or issues with credit card debt. However, recent studies indicate that there are many who have encountered a need to pursue debt relief due to the spending habits of a partner or spouse.

Dealing with one's own financial responsibilities can be stressful enough. However, recent studies suggest that more than 74 million consumers across the nation have experienced monetary concerns after taking on a partner's debts. These debts range anywhere from credit card and medical bills to student loans, and similar obligations can place a substantial financial weight on an individual.

Chapter 7 and the “necessities of modern life”

Perhaps you face a mountain of debt and are considering filing Chapter 7. You know you will have to give up some of your property, but what will that include?

Do not worry about losing items that are essential for living and working. With regard to your bankruptcy procedure, these are known as the “necessities of modern life.”

Credit card debt: What happens when accounts fall behind

There are many individuals in Tennessee and elsewhere who have experienced the challenges of falling behind on credit accounts. Credit card debt is one of the most prevalent causes of financial strain and similar issues can have a substantial impact on a person's financial future. While some may be aware of the risk of missing payments on credit card accounts, they may still be uncertain of what happens after an account falls behind.

While missing a credit card payment can be detrimental, it may also be a common occurrence for many. In some cases, those who encounter periods of significant financial hardship may find it challenging to make even the minimum payment on accounts, while in others, one might just forget to make a payment by the due date. Unfortunately, even one missed payment could leave a person facing an unfortunate scenario.

Seeking ways to stay clear of credit card debt in Tennessee

Cutting down on debts is a goal for many consumers in Tennessee and across the nation. Although one of the best ways to prevent issues with credit card debt might be to avoid it entirely, in some cases, a person may feel it necessary to use similar accounts to fund financial endeavors. However, with high interest rates on many credit accounts, some may find it beneficial to seek advice on how protect their credit scores through responsible use of credit accounts.

High amounts of credit card debt can place a significant strain on a person. To prevent similar concerns, experts suggest that consumers may find it advisable to avoid using similar accounts to purchase items they can't afford. Experts also indicate that limiting the number of open credit card accounts to one or two could also help reduce the risk of financial concerns.

Medical debt: Even a small balance can lead to financial struggle

The fear of the costs associated with an unexpected medical emergency is a concern for many individuals in Tennessee. However, while dealing with high amounts of debt can be a daunting process, even smaller amounts of medical debt can create an unfortunate situation. Recent studies suggest that when it comes to unpaid medical bills, individuals may receive collection notices on amounts as little as $200.

Recent studies indicate that more than half of the past due medical accounts that were sent to collections over a recent one year period showed balances of under $600. While creditors may wait anywhere from six to 12 months to send an account to a collection agency, once this occurs, the impact it could have on a person's credit score can be devastating. Even with concerning accounts with lesser balances, a similar situation can prompt frequent collection calls that can add stress to an already intimidating scenario.

Impulsive spending habits may leave many in search of debt relief

Many companies deploy marketing strategies that are designed to entice consumers in Tennessee to make spontaneous purchases. While adding that last minute item to the shopping cart may seem harmless, impulse purchases can add up over time. Individuals who are prone to making sudden purchases might benefit from seeking out ways to cut down on unnecessary expenses, as similar spending habits have left many in search of debt relief.

Whether in the form of a limited time sale, or an item conveniently placed near a checkout counter, many individuals have left a store or finalized an online purchase with items they didn't originally plan to buy. Recent reports suggest that the average person spends as much as $5,400 annually on impulse purchases. These reports also suggest that many of these purchases go toward items that might not be essential to life.

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