Memphis TN Legal Blog

When you fall behind on your bills, the end result can be a lot of stress. Many people find it nearly impossible to catch up after even a few months of missed or late payments.

Your creditors will often do just about anything to get what they feel is owed to them, even if they have tacked on hundreds of dollars worth of fines, fees and penalties to your account. The end result can be a lot of stress over a financial situation that you no longer have control over.

When it comes time to consider a bankruptcy, many people prolong their suffering simply because they "aren't ready" to commit to the process. The power of a bankruptcy is very strong, and may provide exactly the relief that you need, but the longer you put it off, the longer you must wait for it.

At the same time, you may actually hurt your future financial security by waiting to begin bankruptcy. Many people do not realize that bankruptcy restrictions often allow them to keep much of their property and income at the time of the bankruptcy, and may not affect a person's ability to receive income or gain property once the bankruptcy begins.

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.