When Tennessee residents are consumed with debt, they may wish to explore their options for potentially discharging that debt. Many parties may want to look into alternatives to bankruptcy due to fear that their credit scores could be considerably damaged or that they could face other negative impacts. However, bankruptcy could be beneficial, especially when debt management plans may not be the best route.
Debt management plans are typically used with credit counseling agencies in attempts to have outstanding debt balances paid off. However, the process could be lengthy, and individuals may not have the protections that bankruptcy could offer. Additionally, if an individual misses a payment for their management plan, it is possible that the plan could be canceled. Depending on the circumstances of an individual case, bankruptcy may be a more feasible option.
It was reported that one woman who utilized a debt management plan had to work 12-hour days and simultaneously care for her husband who was incapacitated. Many individuals believe that bankruptcy may have been a better route for the couple as it may have allowed them to discharge their debts in a more timely manner and with less financial strain. The woman stands by her decision to go through with the plan, but other parties may not feel the same when faced with such issues.
If individuals are facing debts pertaining to mortgages or medical expenses, they may not find many alternatives to bankruptcy that could have a considerable impact on their predicaments. Therefore, Tennessee residents may wish to give bankruptcy due consideration as a method for handling debt efficiently. Interested individuals may wish to consult with experienced attorneys to find out whether such a filing could suit their circumstances.
Source: Chicago Tribune, “Do debt management plans work?“, Aug. 1, 2016