Is there a way to be rid of your seemingly insurmountable debt? You may not know how to pay your house payment, other bills, buy groceries, purchase medicine, avoid those debt collectors that call at all hours and you don’t want your credit ruined. There are alternatives. There are times, however, bankruptcy may be the best solution for some people. According to the Knoxville News Sentinel, Tennessee led the nation last year in bankruptcy filings per capita, even though the number, 4,137, was nine percent less than in 2013.

Alternative to Bankruptcy for Nashville Residents

  • Talk with your creditors. According to the Federal Trade Commission, they may work out a modified payment system. According to, a creditor may be willing to defer alternatives to bankruptcyone or more payments, lower monthly payments, lower your interest rate, wave penalties and late fees or restructure a loan to make paying it off more achievable. It might even be possible that some creditors will accept half the amount owed. A creditor might do these things because of your ability to negotiate, your ability to pay, the chance to get some money rather than none, and to avoid legal proceedings.
  • Some people use consumer credit counseling agencies to get out of debt. Such agencies will work with those in debt and businesses and might be able to work out a repayment plan you can afford. According to the FTC, some agencies will help you for free, but others charge a high fee. Non-profits offer many such services. MasterCard and Visa operate one credit counseling agency, Consumer Credit Counseling. The FTC advises people to first contact their state’s attorney general and local consumer protection agency to find out if an agency is trustworthy.
  • Do some reading. A visit to your local bookstore might yield information on budget reduction plans, which might be another alternative.

Bankruptcy may be the only option, however, if a person is behind on his mortgage or business payments and wants to keep his property in Tennessee or another state. Chapter 13 Bankruptcy will allow you to make up overdue payments during a period of time and to reinstate the original mortgage.

A Chapter 7 Bankruptcy is for the Tennessee residents who want to eliminate their debt, without repaying any of it.

For more information about your choices if you are facing debt you can’t handle, contact us.

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