Payday Loan Debt Help in Tennessee
Tennessee payday loans can make a small debt into a major debt fast. The fees and interest can be astronomical, making it difficult to get out of debt once you get trapped in the cycle. If you are paying on Tennessee payday loans with high interest rates, you may be wondering if there is any way out—there is.
In fact, you have more than one option. First, you can look into a Tennessee debt relief or debt consolidation program for help. With these programs, you can work out a payment plan and pay off payday loans in single monthly payments. Another option is to file for bankruptcy to eliminate not only payday loan debt, but also high interest credit card debt, medical debt, and more.
How Can Tennessee Debt Relief Programs Help?
There’s no shortage of payday loan relief programs in Tennessee—and not all of them are legitimate. The best way to avoid debt consolidation scams is to get a lawyer familiar with payday loan debt consolidation program options and debt counseling services. A Tennessee debt consolidation program can help you:
- Lower your monthly payments
- Make a new payment plan
- Consolidate credit card debt and other loan debt into one payment
- Reduce the interest rates and fees on your Tennessee loans
- Stop harassing phone calls from payday loan debt collectors
In essence, Tennessee debt consolidation is one way to seek debt relief by making affordable monthly payments. Consolidating your loans and credit cards and negotiating the removal of fees to reduce your overall debt can also improve your credit score.
Debt consolidation is one way to avoid filing for bankruptcy to take care of your payday loans. You don’t want to get stuck in a cycle of short-term loans and credit card debt!
Work with The Pope Firm and get a Tennessee debt consolidation loan with a low or zero interest rate and no extra fees. We can help you reduce the monthly payments on your loans so that you can save money and your credit score.
What Happens if You Don’t Pay a Payday Loan in Tennessee?
If you don’t pay your Tennessee payday loan, the amount of money and fees you owe will continue to increase. You could end up with an impossibly-high monthly payment and have a hard time getting loan money or help with your debt in the future. Instead of avoiding your payday loans, call our debt consolidation attorneys to help:
- Eliminate the late fees on your debt
- Reduce your interest rates
- Find alternative credit options to prevent the need for a payday loan
- Pay off your credit debt with one monthly payment
Our team is well-versed in Tennessee debt consolidation programs that can help you to negotiate the removal of late fees and possibly even reduce your debt by forgiving a portion of your loan. We can also help make sure that you pick a loan with fair terms that won’t cost you more money in the long run. Remember that the lower your loan payment during debt consolidation, the longer it will take to pay the loan off.
You may be able to counteract that downside by making larger payments on the debt once your financial situation improves. However, in that case, be sure that the Tennessee debt consolidation program you choose doesn’t have any early payment fees.
Call The Pope Firm today for more information about consolidation programs for payday loans and other debt. We’re here to help.
Are Payday Loans Legal in Tennessee?
Payday loans are a type of loan with high fees and interest rates for people who need money fast without a credit score check. They are typically due by your next payday—hence the name. If you cannot pay the loan or need help, it will roll over to the next month with additional fees on top of the interest rate charge.
Before you know it, you will have thousands of dollars of debt due to high fees and interest rates alone and an unaffordable monthly payment to boot. Despite all the above, payday loans are legal in Tennessee and elsewhere in the US.
If you aren’t already dealing with payday loan debt, we recommend considering other options, such as short-term loans and credit. For example, charge the expense to a credit card or ask a friend for help. Credit card interest rates are usually much lower than the average payday loan interest rate, and you will be able to make consistent single monthly payments to pay off the debt. Making a monthly payment on a credit card also comes with the potential benefit of improving your credit score.
If you’ve already taken out a payday loan, debt consolidation is the best option to get control of your financial situation and save money. Debt consolidation can help you handle the monthly payment on your payday loan and reduce the interest rate on your debt. Get in touch with our office for help eliminating your payday debt and credit loan fees.
How Can I Get Rid of Payday Loans?
Payday loans are just one of many loan types eligible for Tennessee debt consolidation. Other debt that qualifies for consolidation includes:
- Credit card debt
- Student loan debt
- Personal loan debt
- Debt from medical bills
- Overdraft fees on your bank account
If you can’t get a Tennessee debt consolidation loan, your final option is to file for bankruptcy. Your credit score will temporarily decrease, but over time it will rebound, and your credit score will improve. Believe it or not, your score will actually recover faster than if you continued to struggle with overdue debt, late fees, and high interest credit cards. Bankruptcy affects your credit less as time passes, late payments, and loans with high balances hurt your credit every month.
In most bankruptcy settlements, you also get to keep your property, such as your car or home. While not ideal, it is an effective way to get rid of all types of debt and improve your credit score over time. Our skilled team at The Pope Firm can help you navigate the complicated world of debt consultation in Tennessee or assist you with the bankruptcy process if necessary.
Get rid of your high-interest payday loans, improve your credit, and start fresh. Schedule a free consultation today.
The information shared here should not be taken as legal advice and does not constitute an attorney-client relationship.
The Different Types Of Bankruptcy
Depending on your situation, there are different types, officially known as “chapters” of bankruptcy, that you can file for. These different chapters of bankruptcy provide different results for different cases, and it’s important to have some knowledge on these chapters before filing for bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a commonly filed for chapter of bankruptcy and is intended for use by low to moderate income individuals with more debt than they’ll ever be able to repay. If properly executed, this chapter of bankruptcy can eliminate most or all of a person’s unsecured debt. If you’re eligible, Chapter 7 could be a great debt relief solution for you.
Chapter 13 Bankruptcy
Another great debt relief solution is Chapter 13 bankruptcy, that works great for people that aren’t eligible for chapter 7 bankruptcy. This chapter allows the debtor, or person that has borrowed money, to restructure their payment plans to be more manageable. At the end of this payment plan, most unsecured debts are discharged, or eliminated. This is sure to provide some much-needed breathing room for those people that feel in over their head, and are in need of some debt relief.
If you need assistance with personal or business bankruptcy and filing in Tennessee, reach out to The Pope Firm and Charles Pope, Attorney At Law.
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Frequently Asked Questions
Bankruptcy occurs when an individual, business, or other entity declares the inability to repay its debts. If you file for bankruptcy, that means that debt collectors must pause attempting to collect debts from you. Bankruptcy often allows you to erase most, if not all, of your debts.
There are two types of debts, unsecured and secured. Some examples of unsecured debts are credit card bills, medical bills, or taxes. Secured debts can include car loans or mortgages, which use the purchased item as collateral. In many cases, filing for bankruptcy can keep this collateral protected and prevent foreclosure of your home or repossession of other assets.
Bankruptcy is governed by federal legislation under the Bankruptcy Code, which falls under the greater United States Code. Both federal law and local law inform the bankruptcy procedure. Federal bankruptcy judges, appointed by the United States court of appeals, preside over court proceedings in these cases. In court, the judge and a court trustee, review your finances to determine whether or not to discharge the debts at hand.
Each state has one or more bankruptcy courts. Tennessee has six bankruptcy courts throughout the state.
Filing for bankruptcy can be a daunting process, and working with a firm with expertise in the field can provide you with necessary guidance.
There are several types of bankruptcy. Most individuals, married couples, and small businesses choose to file under Chapter 7 or Chapter 13.
What are the Differences Between Chapter 7 and Chapter 13?
The primary difference between these two types is that Chapter 7 bankruptcy allows an entity to fully discharge its debts in a short period. A Chapter 13 bankruptcy involves reorganizing debts and creating a plan to repay those debts over an allotted time. After that time, Chapter 13 eliminates most of the remaining debts.
Chapter 7 bankruptcy is typically filed by those with very limited income and unsecured debts, the most common of which is medical bills. Chapter 13 bankruptcy is most often filed by higher income bracket individuals and those with more assets, such as a car or a home. The motivation for filing Chapter 13 bankruptcy is often preventing assets from being repossessed or home foreclosure due to outstanding debts.
What Other Types of Bankruptcy Are There?
Two other types of bankruptcy are Chapter 11 and Chapter 12.
Chapter 11 primarily applies to larger companies and corporations, but sometimes it is the right choice for small businesses as well. Chapter 12 applies to those who are considered family farmers.
Various considerations get factored into who should file bankruptcy. Filing bankruptcy may be the right choice for you if you are overwhelmed by debt. Regardless of what type of bankruptcy you file, as soon as the process begins, you are granted an automatic stay. A stay is an injunction that prevents creditors from collecting any debts for an allotted time. An automatic stay halts the process of, for example, foreclosing on a home or repossessing a vehicle.
A Chapter 7 bankruptcy will discharge most of your debts. Filing Chapter 7 is appropriate for those who make less than the median household income in Tennessee and whose assets would not be at risk. In this situation, your non-exempt property is sold to pay off creditors.
Chapter 13 bankruptcy allows you to create a plan to repay your debts. If you have non-exempt property used as collateral in secured loans, you can restructure your finances to pay off any relevant debts over the next three to five years. Chapter 11 functions in a similar way, but is exclusively for businesses.
Filing for bankruptcy can provide a fresh start for those bogged down with debt, either by restructuring finances or discharging debts entirely.
How bankruptcy affects business depends upon the type of bankruptcy filed.
Businesses classified as corporations, partnerships, or LLCs can file Chapter 11 bankruptcy. Chapter 11 allows for debt restructuring, while the business stays open. As in Chapter 7 and Chapter 13, an automatic stay activates as soon as your bankruptcy period begins. In an automatic stay, creditors cannot try to collect money or other assets from you.
During this period, you work with your lawyer to restructure your debts and develop a plan to get your business back on track. This plan must be approved by some of your creditors and a bankruptcy court to go forward. You will be able to repay your debts over several years.
Filing Chapter 7 bankruptcy discharges all of your business’s debts by liquidating your assets. The entire process can be completed quickly, often in several months. Chapter 7 allows for the discharge of most debts, excluding government taxes and fines.
Only individuals can file for Chapter 13 bankruptcy. Thus, although businesses cannot file, you can file Chapter 13 as the sole proprietor of your business.
When you decide to begin the bankruptcy process, the first step is to find a lawyer who is an expert in filing bankruptcy in Tennessee. Hiring a bankruptcy lawyer can indeed be expensive, but it is worth the cost. This professional can guide you through what type of bankruptcy is best for your situation and what to expect throughout the process.
- Collect your documents: It is important to have everything from your paystubs to your credit report available before starting.
- Take the means test. This test will determine if you are eligible for Chapter 7 bankruptcy and help guide you in making a repayment plan for Chapter 13 bankruptcy.
- Meet with a credit counselor. In the state of Tennessee, most individuals must meet with a credit counselor from an approved provider before filing for bankruptcy.
- Fill out bankruptcy forms. If working with a lawyer, you can expect they will use online programs to help you file your paperwork.
- Pay your filing fee. It costs $335 to file for bankruptcy in Tennessee. Waiver of the fee is possible in some cases, but it is uncommon. However, it is possible to pay the fee in several installments instead of the entire balance upfront.
Declaring bankruptcy wipes out many debts, but not all.
What Debts are Usually Covered by Bankruptcy?
Bankruptcy can clear most unsecured debts, including:
- Credit card bills
- Medical bills
- Overdue utility payments
Bankruptcy can also clear many secured debts, but it depends on whether you file for Chapter 7 or Chapter 13 bankruptcy. For Chapter 7, you will have to give up any non-exempt items you put up for collateral. For Chapter 13, they will become part of your repayment plan.
What Debts Are Not Covered by Bankruptcy?
- Child support
- Alimony obligations
- Those related to personal injury or death in a drunk driving case
- Any debts not listed on your bankruptcy papers
No type of bankruptcy covers these debts. If you file for Chapter 7, they remain outstanding. Under Chapter 13, you pay these debts along with your other debts.
What Debts May Be Covered?
Bankruptcy rarely covers student loan debt. However, it may be in some cases with proof of undue hardship.
Tax debt is also rarely covered, but bankruptcy may cover certain old unpaid taxes.