Bankruptcy filings, including Chapter 13, rise in Tennessee

Bankruptcy filings, including Chapter 13, rise in Tennessee

| Jul 29, 2013 | Chapter 13, Firm News

As many consumers often find, their spending habits can occasionally exceed their income. When this occurs, debt accumulation beings, and if the situation is not handled quickly, it can very soon become almost unbearable. Many consumers, however, are already privy to the benefits that bankruptcy options such as Chapter 13 can offer.

Tennessee has seen a slight rise in the number of bankruptcy filings as the end of the second quarter of the year comes to a close. It was reported that this is fairly typical as debt accrued at the end of the previous year must be paid back. People often use their tax refunds in order to pay off last year’s debt, but more often than not, a tax refund is not enough to pay off all accumulated debt. As an outcome, more consumers look toward bankruptcy to help ease their financial situations.

As a common result of year-ending holidays, many consumers find that gift purchases, money spent on family visits and other expenses have plunged them into unexpected debt accumulation. They may believe that they will be able to pay off those expenses, but there are always a number of other unexpected circumstances such as job loss or medical bills that could further inhibit a person’s ability to pay their bills. Such a situation can quickly seem hopeless, but there are options for consumers to explore to help with their monetary burdens.

As the percentage of Tennessee bankruptcies increased, this could indicate that more people are taking advantage of how beneficial bankruptcy can be. Many people gain significant debt through the holidays and sometimes realize too late that they are in a difficult financial situation. The idea of being burdened with debt can be very stressful and filing for Chapter 13 bankruptcy could help consumers set down a path to financial freedom. There are several different options and gathering information could help find the best route for an individual’s situation.

Source: 

Memphis Daily News, “Second-Quarter Bankruptcies Up 2.3 Percent,” Jennifer Johnson Backer, July 19, 2013