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Long and Short Term Effects of Bankruptcies in TN

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Chapter 7 and 13 Bankruptcies

Bankruptcies Chapters 7 and 13

If you have some bad credit issues in Memphis, Tennessee for example and need a vehicle you might need to find no credit slow credit bankruptcy car dealerships after discharged. Filing for a chapter 7 or a 13 bankruptcy could be a big step in getting you back on the right financial path. Along with getting you on your course there can and will be some manageable short and long term effects for filing for a bankruptcy.

Short Term Effects

The time that it takes to finish the process of filing bankruptcy is shorter than most people may think. Under Chapter 7 most or all of your unsecured debt will be discharged, and your secured debt will be liquidated. This process will usually take around three to four months from the date of filing.

When a Chapter 13 is filed it is looked at like a restructuring of your debts and can take a little longer to finish the process. Filing a chapter thirteen bankruptcy will allow most people to keep their mortgages and auto loans with the thought of bring them up to date. While some of their unsecured debt will be discharged, they will still have to pay some back. This process will usually offer 36 to 60 month plans and is based on the current income that you have coming in.

In Tennessee there can be challenges when a bankruptcy is involved

The challenges you will face when trying to find bad credit dealerships Knoxville TN that work with bankruptcy will only last for a short period, but that falls on you changing your financial habits. Because bankruptcies have a way of showing up on your credit report, you will likely find it harder to get any newer lines of credit. And when you are approved, you will find out that from time to time you must pay higher interest rates than even before you filed.

This can make it difficult to buy the major items like a vehicle, a home or even a simple credit card for a while, but you must be patient. Your credit will improve over time as you work toward a better financial future.

The most intriguing short term effect is actually instant. You know all those phone calls that you dread answering. Well consider the stress of your phone ringing off the hook gone. Once you hire an attorney to start the bankruptcy process creditors are required to stop calling you. It is rumored that most people consider this to be well worth the other effects of filing bankruptcy. But each person will have different points of view.

Long Term Effects
  • Chapter 7 show on your credit report for ten years.
  • Chapter 13 show on your report for seven years.

There are three major long term effects that you will have to endure to get through the process. This will include credit report appearances, future jobs or careers and insurance policies.

Now when you file bankruptcy you can also submit a letter to your credit agencies explaining the circumstances to why you are filing, but there is no guarantee that will lessen the impact or not show up on your credit report.

Lastly, insurance agencies have been asking consumers if they have ever filed for bankruptcy. Again, even if it is no longer showing on your report, you must inform them that you have. This can affect your policy and your rates.

So in closing there are long and short term effects that filing a bankruptcy in Tennessee or any other state where you may reside can cause, but when it is the only option available you have to be willing to accept all the responsible for your action. Your time is now to apply for your after bankruptcy auto loan in TN. Let this serve as a learning experience and a stepping stone to better credit and financial stability.