The national economy appears to be moving toward recovery, but many Tennessee families continue to feel the effects of the fallout of the housing and financial crisis. This may be what led to an increase in the number of people in Shelby County filing for bankruptcy during the first quarter of 2012, which covers the period between January and March. During that time, there were 3,063 bankruptcies in the county.
Tennessee residents may find themselves having to file for bankruptcy due to any number of causes. Many times, a household may already be experiencing financial hardship when an unforeseen event, such as unemployment or a large medical bill, puts them over the edge. However, Chapter 7 bankruptcy may be able to put things right again by allowing the debtor to eliminate most or even all of their debt.
Just last week, the Federal Reserve Bank released data showing the level of consumer debt and spending in February. Among the Fed's findings, the data shows that even though credit card debt and other types of revolving credit declined, other forms of debt increased. Here in Tennessee, that may mean that many residents are seeking debt relief or debt management options to get ahead of their credit card bills, but unfortunately still falling behind.
After a debtor enters bankruptcy in Tennessee or anywhere in the country, there are certain rules and regulations that come into effect. Many of these rules affect the debtor themselves, but they can also govern the conduct of creditors. Once a person enters bankruptcy, the creditors may no longer be able to harass the debtor with continuous phone calls and letters.