When a Tennessee resident is facing substantial financial hardships, he or she may feel as if seeking help is not an option due to being unable to afford it. However, it is important that such a situation is looked at from realistic perspectives. Individuals who owe money due to credit card debt or other types of debt may believe that their income should go toward paying off those creditors. However, if the debt is too overwhelming, that income may be better spent on other debt relief options.
Because there are fees that can be associated with filing for bankruptcy, some individuals may think they do not have access to this option. The idea of using their income to pay down some balances may seem like the more prudent path. However, if making minimum payments is not having a considerable impact on a person’s debt situation, skipping the payments and using that money for bankruptcy fees may be a viable avenue.
If a party is facing wage garnishment, bankruptcy will cause those garnishments to stop. The ceasing of this action may allow an individual to keep more of his or her earned income. That income could potentially be put toward creating a more stable financial situation as bankruptcy proceedings move forward.
Being overwhelmed by financial issues may cloud a person’s judgment about what he or she may be able to afford in terms of debt relief. Luckily, bankruptcy may be an option that can help parties better understand their financial situation and get back on track. Tennessee residents who are interested in finding out more about their debt management choices may wish to make use of local resources.
Source: Fox Business, “Help Filing for Bankruptcy Without a Fee“, Steve Bucci, Dec. 11, 2014