Tennessee readers who have been faced with overwhelming debt know how hard it can be to find a solution. People who have struggled with significant debt are familiar with the repeated calls, not only from creditors but from companies offering debt relief or consolidation. In some cases, predatory debt relief companies initially promise free or low-cost assistance, but eventually charge the borrower over $1,000, making their financial situation even worse and offering little or no help.
For Memphis residents who have been through the bankruptcy process this year, the process of restructuring debt offers much needed relief from the stress of being unable to make regular payments. The bankruptcy process does offer finality and a clear resolution to debt problems, but the hard work continues after the filing is complete and payments are due on the restructured debt. In addition, borrowers should be aware of the other peripheral implications of a bankruptcy filing, such as unexpected tax liability.
Along with people from all over the country, Memphis residents continue to file for Chapter 13 bankruptcy. However, the procedure for filing for Chapter 13 bankruptcy can be quite complicated, but both the federal courts (that administer the country's bankruptcy system) and Congress frequently attempt to work on streamlining the system to make it more uniform across the nation.
According to a recent statement by the Federal Reserve Bank of New York, household debt in Tennessee and nationwide continues to be on the decline. In the third quarter of this year, declining mortgage balances outpaced rising student and auto loans.
With more and more students going to college and more and more students taking out loans, students are struggling with debt management. With more students struggling with debt management, many believe that schools should take a more active role.