View Video here:Tennessee Ranks 2nd in Nation in Bankruptcy Filings
KNOXVILLE, Tenn. (WVLT) — 68-thousand dollars in debt, Brenda Lane had nowhere else to turn.
“no not really. I’d been struggling with a lot of these debts since like 2000,” Lane told WVLT.
For her, chapter 7 bankruptcy was the only option.
“Last resort, only resort really truly. At this point in time. It just snowballed.”
Attorney Richard Mayer has been handling bankruptcies for 23-years and says Brenda’s situation is more and more common…And accepted.
“Bankruptcy now in my opinion is a financial tool. Part of the reason is because of the low rate of income we have here in the state,” said Mayer.
In a 9-month period, Knoxville area bankruptcy filings totaled more than 46-hundred, up 300 from the same 9-month stretch in 2008. Mayer knows why.
“Really the unemployment is driving the situation I think of the recession there’s been a pretty big spike in the last year since October 2008. We’ve seen a spike of people needing our help.”
People like Dan Sturm specialize in helping you ease financial burdens and understand what other legal options are available.
“We find that the biggest disconnect is that most of the consumers are not aware of the protections that are provided to them under the law prior to filing the bankruptcy,” said Sturm.
By law, you can only file chapter 7 once every 8-years. Brenda Lane doesn’t plan on going down that road again.
“If I don’t have the money for it, guess what? I don’t get it.”