A recently published article takes a disturbing look at how bankruptcy services are made available to individuals who are in dire financial straits, and the picture that is painted is one of unfair treatment toward African Americans. The report focused on how African American residents in one Tennessee city were not counseled on their options when looking for bankruptcy services. In many cases, consumers ended up filing for Chapter 13, when Chapter 7 bankruptcy would have provided far better relief.
Tennessee residents encounter escalating debt for a number of different reasons, many of which lie beyond their control. When credit card debt mounts, the manner in which a consumer responds will shape the outcome. Knowing how to respond to ongoing credit card debt struggles is important, and can prevent a negative financial outcome.
Student loan debt has gotten out of control. Over $1 trillion in student loan debt exists throughout the United States. Out of that number, approximately $22 billion belongs to people in the state of Tennessee, according to an article found in the Memphis Business Journal.
Many Tennessee residents will encounter some form of severe financial difficulty at one time or another. The timing of that misfortune can make a world of difference in one's financial future. In fact, without careful planning, it is possible for an individual to lose the entirety of his or her inheritance. A well-timed Chapter 7 bankruptcy can prevent that outcome, and is an option that individuals may want to consider.
For those in Tennessee who are burdened with heavy loads of debt, there are several available options to find relief. One involves filing for Chapter 7 bankruptcy, a process that is never one's first choice. Another option is pursuing debt settlement, which is a path that may seem very appealing to many consumers. It is important to understand the differences between bankruptcy and debt settlement prior to making a choice.