The National Bankruptcy Research Center, a data research company, reports that Tennessee holds the distinction of having the highest per capita number of bankruptcy filings in the country. According to the NBRC, Tennesseans are filing bankruptcy at a rate that will result in an annual bankruptcy filing rate of one out of every 56 households.
The NBRC did not comment as to why Tennessee has so many bankruptcy filings, but we at Clark and Washington actually see a large number of filers and we tend to see the same situations again and again.
In our practice, we see a large number of filers who are there because of:
- job loss
- out of control credit card debt
- medical issues (resulting in a so called “medical bankruptcy”)
- divorce or family issues
- pending foreclosures
We have also been seeing more and more clients who previously held high paying jobs and who were, until recently, financially stable.
Filed under Bankruptcy in the news by 
USA Today reported in today’s edition that complaints against debt collectors have reached an all-time high. The Better Business Bureau reports at 26% increase in complaints in 2007, and attorneys general in many States are pursuing actions against collection agencies for false and misleading activities.
In discussing debt collection tactics with our bankruptcy clients, it appears that there are some debt collectors that will do or say anything to intimidate a debtor into paying an overdue bill. Some of the misleading collection activities we hear about include:
- suggestions that your failure to pay a credit card debt can land you in jail
- threats by credit card collectors that they can seize your bank account without filing a lawsuit
- threats by collectors that they will contact your employer
- claims by collectors that they are lawyers and are prepared to file suit immediately
With Tennessee leading the nation in the rate of bankruptcy filings, it is not surprising that bill collectors are very active here and that they are aggressive in their dunning activities. If you are the recipient of collection phone calls – even those that do not cross the line into illegal threats – you probably have questions about your options. Feel free to contact our law firm – we have offices in Knoxville, Nashville and Chattanooga – we’ll be happy to answer your questions without any obligations.
Filed under Debt collection issues by
