Tennessee residents who are having financial issues might want to think about the benefits of personal bankruptcy. While it can be an intimidating thought, circumstances are key. Those facing dwindling income, job loss, or are simply drowning in debt should think about whether bankruptcy is a wise option. This is especially true with older people.
A recent study says that older people in the U.S. are increasingly using bankruptcy as a way to get on stronger financial ground. The study from the Consumer Bankruptcy Project shows that the number of senior citizen bankruptcies have multiplied by five in the past several years. In Tennessee, the overall number of people who have filed has been reducing, but it should be remembered that the state has consistently been in the top five in bankruptcies. There are many explanations from CBP as to why the number of senior citizens filing for bankruptcy is on the rise. Medical expenses, losing a job, a reduction of income, and the reduction of government programs to protect them are all factors.
As they try to meet their obligations, seniors have taken drastic steps before they decide to file for bankruptcy. They might forgo prescription medications, lower their spending on food, and not buy the basics to save their money to pay back creditors. Elderly people have generally been reluctant to file for bankruptcy as they perceive it to be a dereliction of their duties. However, as they come to realize that they are on a treadmill and only making matters worse by borrowing and using credit cards, it becomes clearer that bankruptcy can restart their financial lives and allow them to clear debts they would otherwise never be able to pay off.
There are several bankruptcy options, but those who are thinking about filing should be focused on the personal bankruptcy alternatives of Chapter 7 and Chapter 13. Chapter 7 involves liquidation and is better for those who do not have secured property that can be taken by creditors to pay debts. Chapter 13 is akin to a consolidation loan and shields certain properties like a home and an automobile. Older people and anyone who is facing creditor harassment and the fear that they will not have anything left after paying creditors should consider personal bankruptcy. A law firm experienced in helping debtors can give guidance and advice.