One option available to Chattanooga debtors unable to get their debt under control is very often overlooked due to myths about Chapter 7 Bankruptcy. These myths delay debt relief for consumers as well as deny them the protection available under bankruptcy law. If you’re a Tennessee resident buried by debt, harassment from creditors and the worry of losing your personal property to repossession, this article could help you when considering your options.
Myth 1: Future Financial Woes
Often we hear that debtors are worried about their future financial status. Most times when bankruptcy is a necessity, credit scores are already low and the risk of repossession is very real. The Federal Reserve Bank of Philadelphia found that bankruptcy typically raised credit scores an average of almost 80 points. There are also products available that are specifically targeted to improve credit scores (secured credit cards are one example.)
Myth 2: Loss of Property
Understandably, the fear of losing assets turns people away from Chapter 7 bankruptcy. But there are Tennessee laws in place to exempt many types of property. Due to this law, most Chapter 7 cases are considered no-asset cases. Excess real estate property and luxury items may be liquidated in order to pay the overwhelming debt.
The main point is that there are options for those who feel buried by debt. An experienced Chattanooga attorney will help guide you to a way to relieving your debt!