According to Nerd Wallet, 40% of Tennessee renters spend more than 35% of their income on housing. However, economist and the US Department of Housing and Urban Development agree that spending more than 30% of your income on housing is not sustainable and leaves homeowners short on other living necessities.
These numbers could help explain foreclosure rates in Memphis and the state of Tennessee.
If you’re behind on your mortgage, you should look into filing for bankruptcy.
A Chapter 13 bankruptcy can stop the inevitable foreclosure and allow you to pay back your debt over a period of years instead of all at once. A Chapter 7 bankruptcy can be used to clear out all of your other debt to make way for paying your mortgage if you want to keep your house. It can also be used to discharge all of your mortgage debt, however you won’t be able to keep the house.
As we highlighted in a recent blog post, it’s in our nature to desire enjoyment of life’s luxuries, such as living in a nice home. We all have a dream home in mind and will sometimes reach outside of our financial comfort zone to get as close to it as possible (or not possible).
This can leave us strapped for cash and barely scraping by to make ends meet. Then, to be sure we can pay our rent or mortgage, we may forego buying other necessities like sufficient food for ourselves and family, or oil changes for our cars. This can result in even higher expenses like medical costs for unhealthiness, or more extreme car maintenance because you haven’t been taking care of what needs to be cared for.
Many financial problems stem from buying something you just can’t afford, like a house, and then the debt piles on over time and leaves you stranded and stressed.
Instead of letting this happen to you, buy a house you can afford. It is possible to live in a nice neighborhood and be able to afford it, and Nerd Wallet compiled a list of “Best Cities for Homeownership in Tennessee.” It ranks cities based on the avalability of homes, if you can afford to live there and growth in the area. The cities are ranked:
1. Arlington*
2. Spring Hill
3. Mt. Juliet
4. Middle Valley
5. Seymour
6. White House
7. La Vergne
8. Collierville*
9. Lakeland*
10. Barlett*
* denotes Shelby County suburbs
As a Memphis bankruptcy attorney, it’s encouraging to see four Shelby County suburbs on this list.
Whether you want to keep your house or not, I advise you to look into a bankruptcy if you’re struggling from debt you just can’t pay. Regardless of why you have gotten into debt, if you find yourself unable to pay for it and would like help, you should call a liquidation lawyer Memphis, TN families turn to.
If you’re considering bankruptcy or if you have any questions, call us today at (901) 327-2100 or fill out the “Get in Touch” form below. One of our experienced Memphis bankruptcy attorneys will be happy to talk to you about your situation, free of charge.
If you’re worried about your credit, don’t fret. A bankruptcy is your prime opportunity to clear out all your nasty debt and start fresh rebuilding your credit. We can help you with that by offering you access to a 14-week program called “7 Steps to a 720” that will teach you how to re-establish your credit after a bankruptcy. This program is free for our clients.