Student loan, credit card, and tax debt settlement in TN
May 11, 2021at7:00 AM
Being mired in debt is prohibitive and anxiety-inducing. However, there are solutions. If you need student loan, credit card, or tax debt settlement in Tennessee, you came to the right place. At Bankruptcy Partners, PLLC, we’ve been servicing Knoxville with premier bankruptcy counsel for decades. Unlike competitors, we offer affordable, premium representation and attentive, tailored solutions to optimize your unique situation.
Here’s how to settle your debts:
Bankruptcy is an option for student loan debt settlement in Tennessee. Just be aware there’s no such thing as student loan bankruptcy. Generally speaking, your two best options are Chapter 7 and Chapter 13 bankruptcy.
However, having student loans considered for discharge requires an extra step: filing an “adversary proceeding.” While this can be a great way to discharge student loan debts, it can also do more harm than good.
Depending on your circumstances, you can end up owing more on loans. More importantly, if your only debt is this loan, you shouldn’t file. In these instances, it’s recommended you get a loan settlement. This means you pay less than what was originally owed.
However, your loan typically has to be close to default or at default. If you have a federal loan, things work differently. This process is complicated and requires expert insight to truly determine what’s best for you.
At Bankruptcy Partners, we’ll find the perfect situation to eliminate your student debt.
Credit card debt
Filing for bankruptcy is perfect for credit card debt settlement in Tennessee.Chapter 7 discharges all or most unsecured, non-priority debt. This includes almost all credit card debt.
However, if you make more money, you’ll only qualify for Chapter 13. You’ll still have to repay some debt through a repayment plan, but you’ll only pay a portion. It’s worth noting that under Chapter 13, how much you owe depends heavily on how much surplus income you have.
Generally speaking, most people who file for Chapter 13 only pay a small percentage of credit card debt. After you’ve filed for bankruptcy, credit card companies are not permitted to contact you. This includes protection from lawsuits and other collection efforts post-bankruptcy.
Tax debt settlement in Tennessee is complicated. Most taxes cannot be discharged through bankruptcy. Generally speaking, it’s advisable to establish an installment agreement or an offer of compromise. These are contracts between you and the IRS.
A payment plan is an agreement that supplies you with more time to pay what you owe. You’ll also avoid tax levies, tax liens, and other tax collection actions. A 0.5% penalty, plus interest set at 3% in 2021, will accrue until you’ve paid your debt.
In comparison, the average credit card rate is 20.28%. Using an installment plan is significantly cheaper than paying taxes with a credit card. However, when in this plan, all tax returns go toward your balance until your debt is settled.
Lastly, eligibility is crucial to consider. You’re eligible if:
You aren’t in bankruptcy proceedings
You’ve filed tax returns on time for the past five years
You can’t afford to pay taxes
You agree to pay in full within 3 years
Contact us now for a consultation!
For debt settlement in Tennessee, Bankruptcy Partners are your premier solution. No matter what you owe or who you owe it to, our decades of experience are an invaluable asset. We promise affordable, premium services and flexible solutions tailored to you and your specific situation. Contact us now for a consultation! With us, your fresh start is literally at your fingertips.