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What is a deed in lieu of foreclosure and what are its benefits?

Residents of southeastern Tennessee who face financial difficulty are worried about losing their homes. In some cases, unfortunately, the loss in a foreclosure proceeding is inevitable. If a lender completes a foreclosure proceeding and takes possession, the borrower's credit rating will be severely damaged. And, if the property does not provide enough cash to pay the balance on the loan, the borrower may be hit with a deficiency judgment. That is a court finding that the borrower owes whatever amount is required to pay the loan in full. If foreclosure appears to be inevitable, a borrower may consider a deed in lieu of foreclosure.

Understanding mortgage foreclosures

Perhaps, no single word is as terrifying to a Tennessee homeowner as "foreclosure." Anyone who is behind on mortgage payments fears that the lender may commence a foreclosure proceeding at any time. And, the family home may be lost, which means that a bankruptcy will ensue. Fortunately, the reality of the foreclosure process is less harsh than most people imagine.

Important limits on the reach of the automatic stay in Tennessee

This blog has frequently mentioned the importance of the automatic stay under Section 362 of the United States Bankruptcy Code as a method of halting collection efforts by the debtor's creditors. The automatic stay goes into effect immediately upon the filing of the bankruptcy petition, and after the petition is filed, no creditor can pursue a collection action or request payment of an existing debt from the debtor. In spite of this enormous benefit, the automatic stay has important limitations that should be understood by anyone who wants to use it as a shield against creditor's claims.

Practical tips for avoiding foreclosure

Many people in Tennessee had the unpleasant experience of watching increasing debts threaten their financial well-being. One of the most pressing questions is whether financial difficulties will result in foreclosure and the loss of the family home. This blog has discussed how the automatic stay that is issued when a person files a bankruptcy petition halts all foreclosure proceedings until the bankruptcy process is completed. But, the law and differing lending practices provide a number of less dramatic ways to avoid foreclosure.

Understanding the benefits and limits of the automatic stay

One of the most powerful provisions of the United States Bankruptcy Code is the automatic stay -- the provision that prevents creditors from attempting to collect a debt from the debtor. For anyone in Tennessee who files a bankruptcy petition, the automatic stay will bring most collection actions to an immediate stop. However, not every action against the debtor will be stopped. As such, for anyone contemplating bankruptcy, the power and limits of the automatic stay should be completely understood.

Denial of a discharge in a Chapter 7 bankruptcy proceeding

Most people in Tennessee who seek to discharge their debts in a Chapter 7 bankruptcy proceeding assume that their debts will be wiped out at the end of the process. This expectation, while understandable, does not represent the law that governs Chapter 7 discharges. Creditors have the right to object to a discharge of certain debts on any of several grounds spelled out in the Bankruptcy Code.

How bankruptcy can give an individual a fresh financial start

Personal bankruptcy often carries a heavy stigma among people in Bradley County. Bankruptcy is often viewed as a form of cheating, that is, people use it to escape their legal obligations and for no other reasons. This view is not correct. Financial problems can arise from many causes that are beyond the control of an individual. A serious illness or injury might exhaust financial resources. Likewise, the loss of a job can have a ruinous impact on a person's ability to manage debt. The federal bankruptcy law is intended to alleviate these problems and help individuals regain their financial health.

Considerations in choosing bankruptcy

No one in Tennessee plans to end up bankrupt, but unexpected life events, such as illness, divorce or loss of a job, may force individuals to seek the protection of federal bankruptcy laws. While bankruptcy is often perceived to create a social stigma, it may be a better choice than persevering under a heavy debt load.

Understanding wage garnishment in Tennessee

Wage garnishment is one of the most misunderstood collection practices in Tennessee. The procedure is commonly used by parties who have obtained a court judgment for money to collect the amount due from the person who owes the money, i.e., the judgment debtor. Filing a bankruptcy petition is usually the most effective way to stop garnishment.

How bankruptcy provides prompt relief in a financial crisis

No one in Tennessee really plans to become bankrupt, but unexpected life events, such as a major illness or loss of a job, can create a financial crisis that may seem insurmountable. Fortunately for people who are facing such a crisis, the United States Bankruptcy Code provides relief.

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