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Cleveland TN Bankruptcy Law Blog

Legal options may be available to stop wage garnishment

When struggling with overwhelming debt, one of the worst circumstances that an individual can face is having their wage garnished. Wage garnishment can be extremely stressful for individuals already struggling to manage debt, get caught up on payments and get ahead of their financial struggles and challenges.

Wage garnishment can occur when a creditor files a lawsuit against a party that owes the creditor a debt. If the creditor prevails in their lawsuit, it will result in a judgment against the party owing money. Once the creditor has a judgment, they can garnish the party's wages until the debt is repaid. Filing for bankruptcy can stop creditor collection actions from being filed. If a collection lawsuit has already been initiated, filing for bankruptcy may also halt its progress and prevent a judgment from being obtained.

Bankruptcy numbers remain high in Tennessee

Personal bankruptcy options include Chapter 7 liquidation bankruptcy or Chapter 11 reorganization bankruptcy. Depending on the unique circumstances and goals of the filing party, one option may be better than the other. Chapter 7 personal bankruptcy allows the filing party to liquidate assets that are not exempted from the process to repay creditors. Chapter 11 bankruptcy allows the filing party to reorganize their debts to repay over a manageable period of time.

Understanding how Chapter 11 bankruptcy can help

This blog recently discussed bankruptcy options for businesses, which is an important topic for struggling companies to be familiar with. A Chapter 11 business bankruptcy filing typically allows the company to continue under its current management. Unlike a Chapter 7 bankruptcy filing, which is an option for companies going out of business to consider, a Chapter 11 business bankruptcy filing is an option to help the company remain in business and return to profitability. After the bankruptcy filing, an automatic stay goes into effect halting creditor collection actions.

Approximately 20 to 40 days later, the first meeting of the creditors is held. A representative of the company must attend and will be asked questions about the company's assets and liabilities and income and expenses. The creditors may inquire about the financial condition of the company. A creditors committee is then established, which typically includes representatives from 7 of the company's largest unsecured creditors. The committee works with the company to draft a reorganization plan.

Bankruptcy filing halts foreclosure sale of business

Bankruptcy options are designed to help both struggling individuals and companies based on their unique situation and circumstances. With regards to commercial property owners, businesses dealing with financial problems might find it resourceful to consider bankruptcy and how the process could offer them a fresh start.

A bankruptcy filing recently halted the foreclosure sale of a portion of a mixed-used Tennessee development . Following the bankruptcy filing, a representative for the development reported that the bankruptcy filing was made in error because a message from the lender of the $27 million loan on the project was not received, noting that the lender would extend the terms of the loan.

Chapter 7 exemptions may address concerns of filers

The decision to file for personal bankruptcy is likely not one that is taken lightly and can include some understandable anxieties and apprehensions. It is helpful for individuals considering filing for Chapter 7 liquidation bankruptcy to be familiar with the process and understand how Chapter 7 bankruptcy exemptions work because this may help ease some of their concerns.

When an individual is considering filing for Chapter 7 bankruptcy protection, they may be concerned about protections for their home, cars and other property. There is a difference between a fresh financial start and starting from scratch, and the Chapter 7 bankruptcy process takes that into account. Certain categories of exemption are taken into account. In general, the Chapter 7 bankruptcy process is a liquidation bankruptcy process for filers who qualify to liquidate non-exempt assets to repay creditors followed by a debt discharge so they can enjoy a financial fresh start.

Tennessee ranks 2nd for bankruptcies as they decline in April

Bankruptcy can be a challenging subject, but it does not have to be since it is designed to help struggling families and individuals. No matter a person's situation or reason for filing, bankruptcy can be a real and workable solution for many.

Though bankruptcy filings declined in April when compared to April of last year, the number of bankruptcy filings in Tennessee continues to rank high. Tennessee ranks second on the list of states with the most bankruptcy filings per capita. Bankruptcy filings for April also showed a drop from March. Noncommercial personal bankruptcy filings totaled 64,323 for April of this year. In addition, the total number of commercial filings for April 2017 declined when compared to April of last year. Commercial filings also declined when compared to March.

Chapter 7 bankruptcy can provide much-needed debt relief

The decision to file for bankruptcy can be a big step, but it does not have to be an especially unpleasant one. This blog recently discussed the increased number of bankruptcy filings and the high number of bankruptcy filings in Tennessee. Bankruptcy protections provide an important legal option for individuals struggling with the burden of overwhelming debt, allowing them to enjoy relief.

The Chapter 7 bankruptcy process provides a path forward through debt and the stress and strain associated with it. Chapter 7 bankruptcy provides effective relief and protection from medical debt, credit card debt and other types of debt. Chapter 7 bankruptcy, often referred to as straight bankruptcy, can provide comprehensive debt relief in which the filing party discharges most if not all of their debt, helping them enjoy a fresh financial start.

Bankruptcy filings on the rise in March

Bankruptcy is an important process for consumers and businesses. The bankruptcy process is a way to resolve debt problems, and it frequently provides new opportunities. Whether you are in consumer debt or business debt, filing for bankruptcy can be the major step to take to offer you a fresh financial start.

According to recent data, nationally, bankruptcy filings rose significantly in March. The increase from February amounts to 40 percent or up to 81,590 total filings from 58,000 total filings in February. The number of bankruptcies in March also increased from 78,372 total filings in March of last year. Tennessee was again ranked number two in the nation with 5.74 bankruptcies per 10,000, which were also up slightly from last year. A total of 62 percent of filings were Chapter 7 bankruptcies, while 59 percent of bankruptcies filed in February were Chapter 7 bankruptcies.

An overview of how Chapter 11 bankruptcy works

Chapter 11 bankruptcy is a bankruptcy process that allows the struggling business to reorganize its debts and also liquidate assets to repay debts. Once the filing party has filed the bankruptcy motion, they remain in possession of the business and its assets during the business bankruptcy process. The goal of the process is to get the business back on its feet.

Following filing of the bankruptcy petition, an automatic stay goes into effect and can provide breathing room for struggling business to regain its footing. During the period of the automatic stay, which extends throughout the bankruptcy process, creditors are prohibited from pursuing collection activities, judgments, repossessions or foreclosures. In certain circumstances, the creditor may be able to avoid the stay so it is important to be familiar with those situations.

How is property protected in a Chapter 13 bankruptcy process?

Bankruptcy can be a reorganization option for individuals. However, in order to use this bankruptcy type, filers must have a reliable source of income. Those seeking to reorganize their debt and enjoy a fresh financial start at the end of the process should consider filing for Chapter 13 bankruptcy. A manageable repayment plan is developed through the Chapter 13 bankruptcy process that allows the filing party to repay their debts over a 3-5 year period.

It is important to keep in mind that similar to a Chapter 7 liquidation bankruptcy, certain assets are protected because they are exempted from the bankruptcy process during a Chapter 13 bankruptcy. It is also important to be aware of the key differences between the two types of personal bankruptcy options, as a Chapter 13 bankruptcy does not involve the liquidation of non-exempt assets to repay creditors and instead is a reorganization process that results in a repayment plan followed by a debt discharge at the end of the process.

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