Foreclosures, Bankruptcies Up In Many Parts Of Tennessee
Times are tough for many Tennessee residents. Maybe you were laid off. Perhaps you have significant unpaid bills, whether credit card-related, for medical treatment or otherwise. It is very common for homeowners to fall behind on their mortgage payments these days, and you are certainly not alone if you are underwater, or owe more on your mortgage than your house is worth. Recent statistics on Tennessee bankruptcy and foreclosures are proof.
Chapter 7 and Chapter 13 Bankruptcy
In the first quarter of 2012, Tennessee led the nation in the rate of personal bankruptcy filings, according to the Times Free Press. For every 1,000 Tennessee residents, there were over seven bankruptcy filings, including both Chapter 7 and Chapter 13 bankruptcy protection. Chapter 7 bankruptcy can help you eliminate some or most of your debts, while Chapter 13 bankruptcies are known as “wage-earner” cases, which involve making payments according to a court-ordered debt repayment plan.
During the same time period, RealtyTrac data showed that foreclosure notices increased over their 2011 fourth quarter total in many Tennessee metro markets, Times Free Press reported. In Nashville, for example, the foreclosure rate was one in every 293 households. In Chattanooga, the rate was one in every 325 households.
According to the Memphis Daily News, mortgage lenders delayed many foreclosures to allow homeowners to modify their loans. In addition, the foreclosure rate was down in the final three months of 2011 because banks were negotiating with regulators and customers over disputed paperwork on many defaulted loans, according to the Times Free Press.
Bankruptcy in Response to Foreclosure
Recently, banks have started increasing foreclosures once again. This in turn has led more people to file for bankruptcy, since doing so puts the foreclosure process on hold. When you file for bankruptcy, the court will issue a stay, which prevents creditors from pursuing claims against you while your bankruptcy case gets sorted out.
If you are facing mounting debt and the possibility of foreclosure of your home, contact a skilled bankruptcy attorney who can advise you on your options for debt relief, which might include filing for bankruptcy