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Chapter 13 may be an option if prioritizing income is not enough

Many Tennessee residents who are burdened with debt are keenly aware of where their money goes. Even if money is being spent on necessities, there could be a nagging thought of how that income could be going toward outstanding balances. Prioritizing and delegating where income goes can help to a certain extent, but significant debt may need further consolidation efforts, such as Chapter 13 bankruptcy.

Prioritizing income can depend considerably on the economic situation of the country. For instance, when housing values were down, consumers were less likely to put money toward their mortgages and instead focused their income on credit card balances. Because the values of homes were so low, many believed that their money would be put to better use if other types of debt reduction came first.

As trends begin to change and housing values start to increase, more consumers are considering their homes to have more personal value. Recent studies have indicated that debtors are once again making their mortgage payments a priority. Whether this trend will continue is dependent on a number of issues that can affect the housing market, including consumer anticipations.

Staying updated on economic situations and the best areas to put income can greatly help those facing difficult financial situations. However, prioritizing and budgeting is not always enough to help those consumers with a considerable financial burden. If a person's circumstances meet the criteria, Chapter 13 bankruptcy could be a viable option for debt consolidation. Because each situation is unique, interested individuals may wish to discuss Tennessee bankruptcy laws with knowledgeable parties.

Source: housingwire.com, Consumers prioritize mortgages over other types of debt, No author, Sept. 19, 2013

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