Memphis Bankruptcy Law Blog

As a consumer, it is easy to fall behind on debt. While this is rarely an ideal scenario, there is nothing ethically wrong with failing to pay debts or needing to pay them off slowly. When lenders loan money, they understand that they are making a business deal with an individual and account for the risk involved by requiring that the borrower return the money with interest.

Some debt collectors make the case that those who borrow money and cannot repay it at the speed that the lender prefers are terrible people... Of course, this is a slight exaggeration, but only slight. If you've ever been on the receiving end of a credit card collections call, you may have had a similar experience.

If you're considering filing for personal bankruptcy, it is important to do your homework on the process before moving forward. Planning properly for bankruptcy is one of the most important portions of the process, but many individuals who choose to use bankruptcy for debt relief fail to take full advantage of the process because of poor planning.

This is exceptionally true of Chapter 7 bankruptcy, where a debtor forfeits much of his or her property to a trustee in return for debt discharge. A debtor who fails to properly disclose all assets while filing may see a court toss out the bankruptcy and deny the debtor a dearly needed discharge.

Overwhelming debt is a common problem not limited solely to the Memphis area. People across the country are underwater due to trying to make ends meet. The combination of low wages and continuously increasing living expenses is generally responsible for the mounting debt problem.

While many people view bankruptcy as failure and are afraid of what their friends and family might think, you should instead look at it as a tool for repairing your financial situation. When debt gets so out of control that you are using one credit card to pay off the one you used to buy groceries, it is time to consider some real options to climb out of the cycle. Read further to learn about the signs that it might be time to declare bankruptcy.

During the last six years, fewer Americans have filed for personal bankruptcy. In fact, according to research by Consumer Reports, bankruptcies have declined by 50 percent. According to Consumer Reports, this decrease is partially the result of the Affordable Care Act, which makes healthcare easier and more affordable for Americans to get.

Many legal experts and bankruptcy law authorities agree with Consumer Reports on this point. Prior to the Affordable Care Act, medical debt was one of the leading causes of personal bankruptcy.