Memphis TN Legal Blog

Tax debts can sideline anyone, even those who take great care with their finances. Not only does a significant tax debt pose serious threats to a person's financial world, the government is a formidable force with significant power and reach to recover what the debtor owes. If not handled properly, a person may find that he or she has a very serious financial problem without many clear paths out of hardship.

Fortunately, it is possible to discharge many tax debts through a Chapter 7 bankruptcy. If you or someone you know faces a serious tax burden and needs relief, you should consider the opportunities that Chapter 7 may offer you. While bankruptcy does entail some significant restrictions on your financial behavior, it may provide exactly the help you need to get back on track and out from under the thumb of the government.

If you are falling behind on your mortgage payment for your Memphis home, you are not along. Americans all across the country have found themselves in a downward spiral of debt that includes foreclosure notice. While some lenders will make an effort to work with you to get back on track with your payments, many others will not. Instead, the lender will foreclose on the house and sell it at auction in an attempt to cover the original loan and any other costs associated with the home.

In most instances, the bank will not issue a foreclosure notice until the debtor is two to three months behind on payments. This means that if you have only missed one mortgage payment, you might have time to look into your debt relief options. If you have already explored possible solutions and cannot find one that suits your needs, it might be time to consider bankruptcy.

It doesn't take long for a middle-class working adult to end up in financial trouble. An illness that had you miss a week of work, for example, or a car accident could be all it takes to leave you playing catch-up with everything. When you're barely making the minimum monthly payment on your credit cards, you can end up way over your head in no time.

Once you fall behind in payments, you can count on creditors to start calling. Sometimes, it will be your credit card company, while other times it's a private, third-party collection company that's trying to get you to pay. There's nothing more embarrassing than getting a phone call from a bill collector at work. If your company doesn't allow personal calls, even taking the call could get you in trouble. How can you put a stop to it?

It probably started small, with student loans and a low balance credit card. You finished school with substantial student loan debt and found yourself needing credit cards to pay your monthly expenses while looking for a job. Now, although you have a job, you are only making your minimum monthly payments and the balance keeps climbing. A large amount of your income is going straight to your debt, and you can't keep up with it. In this kind of situation, one accident or sudden illness could be enough to completely destroy your financial security and independence.

Medical debt can often become a major burden for uninsured or underinsured people in Tennessee. You may try to do the right thing by prioritizing certain debts, but now your creditors are calling you. In addition to emails and nasty letters sent warning you of potential lawsuits if you don't pay more, your family could be getting calls as well. Creditors may even try to contact you at work, which could cause issues with your employer (and your ability to pay for your debts). If you can't pay off your debt and are facing creditor harassment, bankruptcy may help.