When you're deep in debt, it can feel like an impossible situation. You may have fallen behind on credit card bills, medical bills or other debts, but you're working and trying to save up the money to pay off your unpaid balance. And then, you see that one of your creditors is not going to wait. It has already started taking a chunk out of your take-home pay through wage garnishment.
Residents of Eastern Tennessee who are experiencing financial troubles probably worry most about losing their homes. One of the most common questions regarding bankruptcy is whether the bank holding the mortgage on a home can commence foreclosure proceedings and reclaim the house. The answer to this questions is not a plain "yes" or "no." The answer depends upon many factors, including the type of bankruptcy petition that the homeowner files.
Most people in Eastern Tennessee think of bankruptcy as a method of discharging their obligation to pay back certain debts. Many people resist the idea of filing a bankruptcy petition because they are afraid that they will lose valuable possessions, most significantly, the family home. While understandable, this fear overlooks an important feature of the bankruptcy code: debt reaffirmation.
Most people in Eastern Tennessee have probably never heard of the CARD Act, even though it contains some of the broadest consumer protection provisions in the United States Code. Even a summary understanding of the Act's provisions can help Tennessee consumers avoid burdensome credit card debt. The Credit Card Accountability, Responsibility and Disclosure Act was passed by Congress in 2009 in response to the Great Recession. The law clarifies certain portions of the Truth in Lending Act and adds a number of important protective measures.
Credit card debt can be easy to accumulate and very difficult to pay back. Unanticipated emergencies, unemployment and other unforeseen expenses can cause credit card debt to add up quickly. Events like holidays and other special occasions can add to the debt. Not too long ago, we discussed the impact of the holiday season on the average American's debt burden.