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Cleveland TN Bankruptcy Law Blog

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.

The bankruptcy process can help with wage garnishment

It can be overwhelming to be facing overpowering debt. Then add to the stress by including wage garnishment to an already challenging circumstance. It can already be stressful to try to address debts, monthly bills and other financial concerns prior to the added pressure of wage garnishment, which can make all of those concerns even more challenging. As a result, it can be tremendously important to stop wage garnishment.

Once a creditor has filed a lawsuit against a party owing them a debt, it is likely that the creditor can obtain a judgment against the party owing the debt. Once a judgment has been awarded, the creditor can begin wage garnishment which can be especially overwhelming and stressful for a party trying to repay their debts. Filing for bankruptcy can help protect the filing party from creditor collection actions and wage garnishment.

Company in Chapter 11 selling to Tennessee company

The bankruptcy process can be an important resource for struggling businesses to consider. While it is a difficult process to initiate and certainly a challenging decision to make, it can often be the best choice and option for a business struggling to keep afloat.

According to recent reports, a laboratory company is planning to sell its medical diagnostics business and most of its assets to a Tennessee company as part of the laboratory company's Chapter 11 bankruptcy. The Tennessee-based laboratory services company will purchase the company as part of the court-supervised auction. The Chapter 11 bankruptcy filing in this case is facilitating the sale of the business and protecting the business until the sale closes.

Newly released bankruptcy numbers show increase

Personal bankruptcy options exist to help when individuals are facing financial challenges in a struggling economy. While it is a challenging reality to accept and an extremely difficult step to take, filing for bankruptcy can be a real solution for those dealing with financial troubles in Tennessee and elsewhere.

A bankruptcy trends report recently showed that national bankruptcy filings rose in February of 2017. The reported increase was from 54,574 bankruptcy filings in January of 2017 to 58,336 bankruptcy filings in February of 2017. The total of bankruptcy filings for February 2017 was, however, a decrease from February 2016. In addition, for the first time in 5 years, bankruptcy filings for 2016 were up 6 percent year-over-year.

Personal bankruptcy options for those struggling with debt

Personal bankruptcy options are available for those struggling with the stress of overwhelming debt. The bankruptcy process can help reduce or eliminate debt or provide a timeline to repay debts that cannot be discharged over time and under more favorable terms.

Chapter 7 bankruptcy is one type of personal bankruptcy that can allow for the cancellation of unsecured debts, such as credit card debt and personal loans. To file for Chapter 7 bankruptcy, individuals must meet certain income requirements. Chapter 7 bankruptcy is often referred to as liquidation bankruptcy, which means that assets are liquidated to repay creditors. It is important to note, however, that as part of the Chapter 7 bankruptcy process, certain assets are exempt from the liquidation process.

Retailer closes Tennessee store; files for bankruptcy

This blog has recently discussed the benefits of commercial bankruptcy for struggling businesses. It is helpful to keep in mind that bankruptcy is also available to individuals struggling with debt. Gander Mountain, a sporting goods retailer with a presence in Tennessee, recently filed for Chapter 11 bankruptcy protection. The store located in a neighboring Tennessee community just east of the Cleveland area is scheduled to close in the next month. The 50,000 square foot store opened in 2014 and will now close as part of the bankruptcy process.

Also, as part of the reorganization bankruptcy process, the struggling retailer will close 31 of its 162 stores, including the one in Tennessee, and is placing it remaining operations up for sale. The company is seeking an interested buyer. It is reported to be in talks with several interested parties for the purchase of the retailer as an ongoing business. The retail chain expects to have a winning bid for submission to the bankruptcy court for approval later this spring.

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