While the Volunteer State takes pride in its leadership in a number of categories, being ranked No. 1 for this category is not a point of celebration. According to a report released by Epiq Systems Inc., residents of Tennessee are filing for debt relief via bankruptcy at a rate twice that of the rest of the nation.

The good news in the report? Filings nationwide were down from 72,000 in February 2014 to 65,000 in February of this year. However, the number of people turning to bankruptcy in Tennessee stood at 5.17 per 1,000 people. This is more than double the national average of 2.39 filings per 1,000. Three other southern states had the dubious honor of making the top 5, including Alabama (4.83), Georgia (4.66) and Mississippi (3.69).hammer-719066_1280

When Bankruptcy is the Only Solution

If you feel the pressures of outstanding debt and have reached your limit of endurance, you will benefit from visiting with a Nashville bankruptcy lawyer. There are many issues and complexities involved with the process of handling your debt, and an experienced attorney will help you understand your options.

If you decide to use the lifeline that bankruptcy often represents, it is important that you understand what this decision involves. This includes proper planning for your filing as well as knowing what you can do before, during and after your bankruptcy is in process. Planning will help you get the best possible start to a new life of financial stability and success.

Understanding the Details

The goal of any bankruptcy filing is to give you a clean financial slate along with the capacity to rebuild your finances. However, the process of bankruptcy does not always eliminate every debt, and it does not mean you lose everything you own. If you’re filing in Tennessee, in most cases you are able to keep your home and car, as well as:

  • Assets up to $5,000 single/$7,500 joint
  • Certain insurance proceeds
  • Certain pensions and benefits
  • Certain personal property and tools

Again, it is important to discuss these details with a knowledgeable Knoxville bankruptcy lawyer to ensure you are using the latest and most accurate information to make your decisions.

Your attorney will also explain that, if done correctly, there are certain assets you can legally protect before you file for bankruptcy, and certain purchases you can make. Additionally, many people find that, after being discharged from bankruptcy, a number of options become available to them that were not possible before filing. Many companies have designed programs to work with those who have recently exited the bankruptcy courts.

A visit with your Chattanooga bankruptcy attorney will provide you with peace of mind concerning your financial options.

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