608 Mabry Hood Road, Suite 202 | Knoxville, Tennessee 37932
When is debt a reason to file for Chapter 7 bankruptcy?
Most Tennessee consumers have debt, and for some, it can be an overwhelming financial burden. There are times when some people would suggest that debt is not a negative thing, but there is a line when any type of debt can become too much for a person to handle. At this point, a person would be wise to start thinking about ways to deal with debt, which may include filing for Chapter 7 bankruptcy.
What makes a debt good or bad really depends on how it impacts the financial health of the consumer. What some consider to be good debt are the types of debt that a person can manage with full and timely payments. These are balances that do not lead to financial distress or cause a person to pull money from another need just to make a payment.
Bad debt is often considered to be the type of debt that a person takes on from a place of desperation or an emergency. This automatically leaves a person at a disadvantage, trying to keep up with payments on a bill he or she couldn’t afford in the first place. This type of debt often snowballs, leading to financial issues in other areas, and potentially landing a person in a financial crisis.
If a Tennessee resident is struggling with bad debt, he or she may not be sure of where to begin to find a way out. Through a Chapter 7 bankruptcy filing, a person can deal with certain types of debt once and for all, emerging to a better and more stabling financial future. An evaluation of a person’s case can help him or her understand the legal options available.
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608 Mabry Hood Road, Suite 202
Knoxville, Tennessee 37932
William E. Maddox, Jr. LLC, Attorney at Law is located in Knoxville, TN and serves clients in and around Knoxville, Oak Ridge, Louisville and Anderson County.
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