Is Finding Debt Relief One of Your 2020 New Year’s Resolutions?

TRI Writer • Mar 02, 2020

Kenneth C Rannick PC, Kenneth C Rannick, bankruptcy, Rannick bankruptcy attorney, Tennessee bankruptcy attorney, Georgia bankruptcy attorney, Tennessee bankruptcy lawyer, Georgia bankruptcy lawyer, declare bankruptcy in Tennessee, declare bankruptcy in GeorgiaDid you know that 67% of Americans planned to make 2020 New Year’s resolutions focused on their finances? Paying down debt was one of the top two financial resolutions Americans planned to focus on in 2020 alongside saving more money (Fidelity Investments survey). If you’re reading this, you’re well aware that the reason this type of resolution is so popular is that making the resolution is much easier than successfully keeping the resolution. Various studies have shown that 1/3 of New Year’s resolutions don’t even last through January.

If you are hoping to find debt relief in 2020, consider these suggestions. They could help you end up one of the lucky ones that accomplish their New Year’s resolution before the next year rolls around.

If you have a 2020 New Year’s Goal to Find Debt Relief, start with these tips:

  1. Look into Joining a Support Group: Support groups exist for a reason. In many situations, it is entirely acceptable and natural to turn to friends and family for support, and doing to can be extremely beneficial. Sadly, when someone is experiencing a terrific financial struggle, considering filing for bankruptcy, or scared that their wages are about to be garnished, they often don’t feel discussing the details with their friends or family. Joining a support group provides the opportunity for camaraderie and support from people who know what you’re struggling with because they’re struggling with it, too. It creates a sense of immediate acceptance in which you may feel comfortable discussing your situation with someone who could lend support, offer guidance, or remind you that you’re not alone.
  2. Don’t Be Afraid of the Details: Creating a decisive financial goal is excellent, but it’s not going to go very far if you don’t have a solid plan. And the trick to creating a solid plan is in the details. Are you afraid of the details? If so, you aren’t alone. It’s shocking how many Americans don’t know the full extent of their debt. They may have a vague idea, but not an actual numerical accounting of what they owe which lender, how much they owe in monthly minimum payments, what their interest rates are on various accounts, or even what type of fees they pay each month or year. For the plan to succeed, you have to get very familiar with every little financial detail. Make an extremely thorough list of your money, your debt. It’s the only place to start.
  3. Automate Your Bill Payments: Once you know all the details, it will be far more straightforward for you to identify the bills that are the top priority. For most these tend to be their mortgage or rent payment, their utility payment, their water bill, etc. You get the picture. Once you know your income and your expenditures, take some time to designate those bills that must be paid every month and set them up on automatic payments. By setting up autopay, you not only create a firm understanding of the necessities paid each month, but you will have a clear view of what you have leftover to pay towards outstanding debt.
  4. Keep Tabs on Your Credit Report: If you are worried about your finances and getting out of debt, you may also be concerned about your credit score. You wouldn’t be out of line – it’s a good idea to include your credit report when you dive into the details of your finances. Check to make sure there are no errors, fraudulent accounts, etc. Then keep an eye on it as you make moves to improve your financial situation by getting out of debt to ensure that your hard work is reflected accurately.
  5. Pin Down Your Student Loans: Many Americans are somewhat uncomfortable talking about their student loans because: a) they left college carrying a hefty balance, b) they are delinquent on their payments, c) they have an uncomfortably high monthly payment, or d) they have been underpaying (or not paying) their student loans for so long that the balance (instead of going down in the years since they graduated) has only increased. Don’t look the other way if you are in any of these situations. Your student loans will be a big part of the process as you attempt to get out of debt even though they are not always treated equally. For instance, it is very rare for a student loan to be eligible for bankruptcy discharge.

If you have a significant amount of consumer debt that you can’t seem to get under control, it could be because you have to continue making your student loan payment each month. Consider contacting the lender to see if there are any available programs or temporary payment options that would enable you to have a lower payment temporarily while you paid down other debt. If the situation is too far out of control for a short-term reprieve to be helpful, you may need to consider the potential benefits of filing bankruptcy to obtain a debt discharge of consumer debt, medical debt, etc. The student loans are not discharged, but many can handle the student loan debt once the rest of their debt is discharged, and they are no longer liable.

If you have questions about how filing bankruptcy could help in your situation, or if you need help getting out of debt, don’t hesitate to call Kenneth C. Rannick P.C., Tennessee and Georgia bankruptcy attorney. We help good people through bad times.

Understanding the Role of the Trustee in Chapter 13 Bankruptcy

05 Apr, 2024
Understanding the Role of the Trustee in Chapter 13 Bankruptcy

Understanding which Debts can be Discharged in Chapter 7 Bankruptcy

27 Mar, 2024
Understanding which Debts can be Discharged in Chapter 7 Bankruptcy

Protecting Your Assets in Chapter 7 Bankruptcy

19 Feb, 2024
Protecting Your Assets in Chapter 7 Bankruptcy

Subchapter 5 Bankruptcy: Unlocking New Possibilities for Tennessee Residents

30 Jan, 2024
Are you a Tennessee resident facing financial challenges and considering bankruptcy? If so, you may have heard about a relatively new option called Subchapter 5 bankruptcy. But what exactly is Subchapter 5 and how does it differ from traditional Chapter 11 bankruptcy? More importantly, what benefits does it offer to individuals and small businesses?  In this blog post, we will explore the world of Subchapter 5 bankruptcy and shed light on its advantages for Tennessee residents. Whether you're a struggling entrepreneur or an individual burdened by overwhelming debt, understanding the potential benefits of Subchapter 5 can help you make informed decisions about your financial future. What is Subchapter 5 Bankruptcy? Subchapter 5 is a relatively recent addition to the United States Bankruptcy Code, specifically designed to provide a streamlined and cost-effective bankruptcy process for small businesses and individuals. It was created as part of the Small Business Reorganization Act (SBRA) in 2019, with the aim of increasing accessibility to Chapter 11 bankruptcy relief. The Benefits of Subchapter 5 Bankruptcy Simplified Process: One of the key advantages of Subchapter 5 is its simplified and faster bankruptcy process. Unlike traditional Chapter 11 bankruptcy, which can be complex and costly, Subchapter 5 offers a more streamlined approach that is better suited for small businesses and individuals. Retention of Ownership: Under Subchapter 5, business owners have the opportunity to retain ownership and control of their company while developing a repayment plan. This allows for greater flexibility and the ability to restructure debts without losing ownership interests. Reduced Plan Requirements: Subchapter 5 eliminates certain stringent plan requirements that are typically associated with traditional Chapter 11 bankruptcy. This simplification of the plan process makes it more accessible to small businesses and individuals. Debt Repayment Plan: Subchapter 5 allows for the development of a debt repayment plan based on the individual's or small business's disposable income. This plan spans over three to five years, making it more manageable and achievable for debtors. Creditor-Friendly Approach: Subchapter 5 encourages creditor participation and collaboration, promoting consensual resolutions and a more amicable environment. This can lead to increased cooperation, reduced litigation costs, and ultimately, a more successful restructuring process. Subchapter 5 vs. Chapter 11 Bankruptcy: Understanding the Difference While both Subchapter 5 bankruptcy and traditional Chapter 11 bankruptcy share some similarities, there are significant differences between the two. The primary distinction lies in the complexity, cost, and requirements associated with each option. Subchapter 5 offers a more simplified and accessible bankruptcy process specifically tailored to the needs of small businesses and individuals, while Chapter 11 is better suited for larger businesses with more complex financial structures. If you're a Tennessee resident grappling with financial difficulties, Subchapter 5 bankruptcy may provide a viable solution. Its streamlined process, reduced plan requirements, and debtor-friendly approach make it an attractive option for small businesses and individuals seeking relief from overwhelming debt. Before making any decisions, it's essential to consult with a qualified bankruptcy attorney who can guide you through the process and help determine the best course of action for your specific situation. Remember, bankruptcy is not a one-size-fits-all solution, and the outcome will depend on various factors. However, understanding the potential benefits of Subchapter 5 bankruptcy can empower you to make informed decisions about your financial future. At Kenneth C. Rannick, P.C., we specialize in bankruptcy law and can provide the guidance and support you need during challenging times. Contact us today to schedule a consultation and explore your options for a fresh start. Take control of your financial future with Subchapter 5 bankruptcy. Let us help you navigate the path to a brighter tomorrow.

A Comprehensive Guide to How Chapter 11 Bankruptcy Works in Minnesota

21 Dec, 2023
Filing for bankruptcy can be a scary and confusing decision, but it is a necessary step for individuals and businesses who are struggling with their finances. In Minnesota, one of the most common types of bankruptcy is Chapter 11 bankruptcy, which allows a business to reorganize its debts and continue operating while paying off its creditors. If you're considering Chapter 11 bankruptcy, it's important to understand how it works and what benefits it can offer. In this post, we'll delve into the process of filing for Chapter 11 bankruptcy, highlight its advantages, and discuss how you can get started.  1. Understanding Chapter 11 Bankruptcy Chapter 11 bankruptcy is a form of bankruptcy that allows businesses to reorganize their debts while continuing to operate. The goal of this process is to give businesses a chance to become profitable again by restructuring their debt payments. During Chapter 11 bankruptcy, a business is protected from creditors by an automatic stay that prevents them from pursuing collection activities. The debtor then works with a bankruptcy court and creditors to create a repayment plan that will allow them to pay off their debts over time. 2. Benefits of Chapter 11 Bankruptcy There are several benefits to filing for Chapter 11 bankruptcy. One of the primary benefits is that it allows the debtor to maintain control of their business operations while repaying their debts. This means that the debtor can continue to generate revenue and will not be forced to liquidate their assets to pay off their creditors. Additionally, Chapter 11 bankruptcy can give the debtor more time to negotiate with their creditors and reach a repayment agreement that is more favorable to them. 3. How to File for Chapter 11 Bankruptcy Filing for Chapter 11 bankruptcy can be a complex and time-consuming process, but it is possible with the help of a knowledgeable bankruptcy attorney. The first step is to file a petition with the bankruptcy court, which will initiate the automatic stay and prevent creditors from taking any further collection actions. Next, the debtor will need to provide the court with a comprehensive list of their assets, liabilities, and creditors. From there, the debtor will work with their attorney to create a repayment plan that is feasible and fair to all parties involved. 4. Working with a Bankruptcy Attorney Filing for Chapter 11 bankruptcy can be an overwhelming process, and it is important to work with a qualified bankruptcy attorney who can guide you through the process. A bankruptcy attorney can help you prepare and file the necessary paperwork, negotiate with creditors on your behalf, and create a repayment plan that is tailored to your unique financial situation. Additionally, an attorney can give you advice on how to protect your assets and maintain control of your business operations during the bankruptcy process. Filing for Chapter 11 bankruptcy can be a complicated and stressful process, but it can also be a valuable tool for businesses that are struggling with their finances. By reorganizing their debts and negotiating with creditors, businesses can get a fresh start and work towards profitability once again. If you're considering filing for Chapter 11 bankruptcy in Minnesota, it's important to work with a qualified attorney who can guide you through the process and help you achieve the best outcome.

Chapter 7 vs Chapter 13 Bankruptcy: Which is right for you?

02 Dec, 2023
Chapter 7 vs Chapter 13 Bankruptcy: Which is right for you?

Understanding Subchapter 5 Bankruptcy

20 Oct, 2023
For many people in Tennessee, bankruptcy can be a daunting and overwhelming prospect. However, if you are struggling with unmanageable debt, it is important to know that there are options available to you. One such option is subchapter 5 bankruptcy, a relatively new form of bankruptcy designed specifically for small businesses and individuals with debts of less than $7.5 million. In this blog post, we will take a closer look at what subchapter 5 bankruptcy is, who might be eligible to file for it, and the benefits it can offer. What is Subchapter 5 Bankruptcy? Subchapter 5 bankruptcy was created as part of the Small Business Reorganization Act of 2019. Its purpose is to provide a streamlined and cost-effective process for small businesses and individuals to restructure and eliminate their debts. Some of the key features of subchapter 5 bankruptcy include: - A simplified reorganization plan process - No requirement for a committee of creditors - No need to obtain approval from creditors for the reorganization plan - Filing fees can be paid in installments Who Should File for Subchapter 5 Bankruptcy? Subchapter 5 bankruptcy is specifically designed for small businesses and individuals with debts of less than $7.5 million. To be eligible to file for subchapter 5 bankruptcy, you must meet certain criteria. These include: - Being engaged in commercial or business activities - Owning no more than $7.5 million in debt - Earning at least half of your income from your business - Being an individual or married couple, rather than a corporation or partnership Benefits of Filing for Subchapter 5 Bankruptcy There are several benefits to filing for subchapter 5 bankruptcy. These include: - Cost-Effective: One of the primary benefits of filing for subchapter 5 bankruptcy is that it is often less expensive than other forms of bankruptcy. This is because it eliminates certain requirements, such as the need for a committee of creditors. - Reduced Plan Length: In a typical chapter 11 bankruptcy, the debtor has up to 5 years to repay their debts. With subchapter 5 bankruptcy, the plan length is limited to 3 years, making it a quicker and more efficient process. - Greater Control: Unlike other forms of bankruptcy, in subchapter 5, debtors retain greater control over the bankruptcy process. This includes being able to draft their own reorganization plans and being granted more leeway in determining treatment of unsecured creditors. - Fewer Restructuring Hurdles: With subchapter 5 bankruptcy's simplified reorganization plan process, small businesses and individuals have more flexibility in restructuring their debts. Overall, subchapter 5 bankruptcy is an attractive option for small businesses and individuals who are struggling with unmanageable debt. By offering a streamlined and cost-effective process, it provides an opportunity for these entities to effectively restructure and eliminate their debts. If you are considering subchapter 5 bankruptcy, it is important to consult with an experienced bankruptcy attorney who can guide you through the process and help you determine whether it is the right option for your specific situation. 

All You Need To Know About Subchapter 5 Bankruptcy In Tennessee

By Kenneth Rannick • 28 Sep, 2023
The pandemic has caused immense financial distress for individuals and businesses alike. With businesses shutting down and millions losing jobs, many have turned to bankruptcy for relief. And this is where subchapter 5 bankruptcy comes in. If you're a resident of Tennessee and are looking to file for subchapter 5 bankruptcy, you've come to the right place. In this blog post, we'll explore what subchapter 5 bankruptcy is, who should file for it, and the benefits of doing so. We'll also discuss how Kenneth C. Rannick, P.C. can assist you with your subchapter 5 bankruptcy matters. 1. What is subchapter 5 bankruptcy? Subchapter 5 bankruptcy, also known as small business reorganization, is a relatively new form of bankruptcy introduced by the Small Business Reorganization Act of 2019. It is designed specifically for small businesses and individuals with debts of less than $7.5 million, making it a simpler and more affordable form of bankruptcy compared to other chapters. The aim of subchapter 5 bankruptcy is to help small businesses restructure their debts and emerge from bankruptcy with a viable business. 2. Who should file for subchapter 5 bankruptcy? Subchapter 5 bankruptcy is a great option for small businesses that are struggling with debt but have a viable business model. It can also be a good option for individuals who don't qualify for other chapters of bankruptcy, such as chapter 7 or chapter 13. To file for subchapter 5 bankruptcy, the debtor must have a regular income and be willing to work with creditors to come up with a repayment plan. 3. Benefits of filing for subchapter 5 bankruptcy One of the biggest benefits of subchapter 5 bankruptcy is that it allows small businesses to restructure their debts and emerge from bankruptcy with a viable business. This means that creditors are more likely to be paid, and the business can continue to operate. Another benefit is that subchapter 5 bankruptcy is faster and less expensive than other chapters of bankruptcy, making it more accessible to small business owners. Additionally, subchapter 5 bankruptcy allows debtors to retain ownership of their business and reorganize their debts in a way that is manageable. 4. How Kenneth C. Rannick, P.C. can assist you with your subchapter 5 bankruptcy matters If you're a resident of Tennessee and are considering filing for subchapter 5 bankruptcy, Kenneth C. Rannick, P.C. can help. We have extensive experience with bankruptcy matters, including subchapter 5 bankruptcy, and can guide you through the process from start to finish. We can help you determine whether subchapter 5 bankruptcy is the right option for your small business, and can help you come up with a repayment plan that works for you and your creditors. Subchapter 5 bankruptcy can be a great option for small businesses and individuals who are struggling with debt but have a viable business model. It is a simpler and more affordable form of bankruptcy compared to other chapters, making it more accessible to those who need it. Kenneth C. Rannick, P.C. can help you with your subchapter 5 bankruptcy matters, and guide you through the process from start to finish. If you're a resident of Tennessee and are considering filing for subchapter 5 bankruptcy, don't hesitate to reach out to us for assistance.

IS IT A SIN TO FILE BANKRUPTCY?

22 Aug, 2023
IS IT A SIN TO FILE BANKRUPTCY?

Who Benefits the Most from Chapter 13 Bankruptcy?

By TRI Writer • 19 Oct, 2022
If bankruptcy is your only hope of getting out from under a mountain of debt that’s grown too large for you to pay, you have one more big question to ask yourself. Should you file for Chapter 7 or Chapter 13 bankruptcy? Most assume Chapter 7 is the appropriate choice for consumer bankruptcy, but some... The post Who Benefits the Most from Chapter 13 Bankruptcy? appeared first on Kenneth C. Rannick, P.C..
More Posts
Share by: