Debt is something that everyone has. It’s a part of life, and it enables people to buy things that they would not otherwise be able to afford. Keeping debt manageable needs to be a priority, but sometimes things go wrong and what was once a manageable load is now out of control. Becoming unable to pay off the balances mean that the interest rates spike, fees are tacked on and the total amount balloons. It’s at this point where taking advantage of debt law in Knoxville can go a long way towards restoring normalcy.
The most effective method of taking advantage of debt law in Knoxville is to file for bankruptcy. Eliminating the load all at once means that the burden is gone for good, making it easier to move on with living. No more collection agencies calling at all hours, no more harassment, and no more feeling of guilt because it’s impossible to pay the bills. Instead, bankruptcy takes care of it in a manner that makes it go away all at once or over a period of time, depending on financial circumstances.
Bankruptcy is open to anyone who can satisfactorily pass the means test. The means test is used to determine which chapter of bankruptcy that the debtor is eligible for. A general rule of thumb is that if the debtor’s income is under the state median, they are eligible for Chapter 7. Too much money over the median means filing under Chapter 13. Keep in mind that these are general rules and not written in stone. It’s best to work with an attorney to determine the right chapter to file under as there can be mitigating circumstances that change eligibility.
When filing for insolvency through the courts, there is something known as the automatic stay that is invoked. This is a temporary injunction that prevents creditors from pursuing debt collection activities. As long as the bankruptcy is active, creditors are barred from contact. If the petition is successful, the stay becomes a permanent injunction, preventing any debt collection for the rest of the petitioner’s life.
Bankruptcy is a fresh start, allowing petitioners to be relieved from debt and move on to rebuild their credit once again.
