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Chapter 7 could help Tennessee residents with mortgage debt

On Behalf of | Aug 30, 2016 | Chapter 7, Firm News

Financial difficulties can affect anyone. When Tennessee residents feel that they are in a tough spot financially, they may wonder whether filing for bankruptcy is an option that they should seriously consider. In many cases, Chapter 7 bankruptcy could help qualifying individuals manage their debt and get back on track.

One man in another state recently utilized this option in order to contend with debt liabilities totaling over $1 million. Those liabilities were mostly from mortgage and home equity loans. Many of those loans had been repaid over the years by taking out other loans, but the situation became more dire when the real estate market crashed. It was also reported that the man and his wife owed more than $56,000 in back taxes for a four year period. The majority of their liabilities were discharged under their bankruptcy filing.

There was some concern expressed as to whether the bankruptcy filing would affect the man’s job as a borough administrator. Some council members wondered whether the man could effectively make financial decisions for the borough while facing personal financial difficulties. However, other council members believed that the personal situation should not affect the man’s administrative position, and no evidence of improper activity was found.

Chapter 7 bankruptcy could be a beneficial tool that many individuals may wish to give more consideration. Tennessee residents should not feel as if they are stuck with facing financial difficulties alone. There are options available that interested individuals could look into to determine whether any could be right for them.

Source: app.com, “Top Red Bank official filed for bankruptcy; house going to sheriff sale“, Payton Guion, Aug. 24, 2016