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Cleveland TN Bankruptcy Law Blog

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.

A closer look at Chapter 11 bankruptcy

This blog recently discussed the helpful nature of Chapter 11 bankruptcy for struggling businesses. Chapter 11 bankruptcy can be a complex process, so it is important that businesses considering the commercial bankruptcy process understand how it works before filing.

One of the primary advantages of Chapter 11 bankruptcy is that it allows the struggling business to continue to operate. Companies including United Airlines, General Motors and K-mart, among many others, have used the Chapter 11 bankruptcy process to return to profitability. In most cases, the business is permitted to continue to operate. In some circumstances, such as cases of fraud or gross incompetence, a trustee will run the business during the bankruptcy process.

Business bankruptcy can provide relief for a struggling business

Challenging economic times can have an impact on Tennessee businesses and individuals, which is why legal options, including bankruptcy are available to help. Businesses may struggle with reduced sales, declining profits and tax burdens that make running what was once a successful business a struggle. The burden of financial challenges can be overwhelming. Chapter 11 bankruptcy is a debt relief option specifically designed for the needs of businesses.

Chapter 11 bankruptcy is a business bankruptcy option that allows a struggling business to reorganize its debts with the intention of remaining in business and returning to profitability. Provided the business is able to generate enough revenue to meet its obligations under the reorganization plan, the Chapter 11 bankruptcy process typically allows the business to remain operational and the management to continue to operate the business.

Tennessee remains second in the US for personal bankruptcies

Although there was a decrease nationally in bankruptcy filings last year, Tennessee remained second in the nation for bankruptcies, per capita. Nationally, the number of bankruptcy filings dropped 46 percent in January when compared to December, but increased 5 percent from a year earlier. There were 54,574 filings nationally in January, which was a decrease from December, but an increase from November. In Tennessee, there were 5.08 bankruptcies per 10,000 people, slightly down from December.

Different personal bankruptcy options are available to Tennesseans struggling with debt and the stress and burdens associated with it. There are different ways to qualify depending on the circumstances of the party considering bankruptcy and the goals they have for the bankruptcy process. Chapter 7 bankruptcy is a liquidation bankruptcy process that allows the filing party to liquidate their assets to repay creditors and enjoy debt relief.

What options are available when a business is struggling?

This blog recently discussed a Tennessee company that was struggling, and other business owners may wonder what to do if they are in a similar situation. When a business is struggling with debt, it can be an overwhelming situation. The options available, and how they operate, can depend on the business structure and whether it is a sole proprietorship, partnership, LLC or corporation. When a business is behind on its debts, creditors may attempt to collect money that is owed and filing for bankruptcy can have an impact on what creditors are able obtain.

The structure of the business, and the extent to which is impacts the personal liability of owners, can also affect the available bankruptcy options. It is important to keep in mind that any bankruptcy process though, begins with a temporary stay after the bankruptcy petition is filed. This stay prevents creditors from pursuing collection actions during the process and can give a business or individual filing for bankruptcy much-needed breathing room.

Tennessee-based company, Pure Foods, files for bankruptcy

Business bankruptcy options provide a variety of resources to struggling businesses. A Tennessee-based company, Pure Foods, recently filed for Chapter 11 bankruptcy protection.

The producer of healthy snacks filed for Chapter 11 reorganization bankruptcy protection in its business bankruptcy filing. The company's CEO reported that the company is seeking a buyer. The company has 100 creditors and liabilities, ranging from $1 million to $10 million.

Bankruptcy can help struggling businesses

Business bankruptcy options can help Tennessean businesses recover from the struggles they have been facing. Chapter 11 business bankruptcy options are designed to help struggling businesses get back on their feet. In doing so, Chapter 11 bankruptcy provides the opportunity for the filing company to restructure its debts, while it continues to operate with the goal of returning to profitability once again.

In addition, the Chapter 11 bankruptcy process allows the filing company to reduce costs and seek sources of revenue in an effort to return to profitability. Another benefit of the process is that the temporary stay goes into effect once the filing party filed for bankruptcy. This prevents creditor collection actions during the process, which can allow the struggling company to focus on the process, reducing debt and being successful once more.

Bankruptcy options can provide relief from repossession

The average Tennessean can have understandable concerns related to their home or car when they have lost their job. They may have serious concerns related to foreclosure or repossession and may have tried everything to make both mortgage payments and car payments, but have fallen behind for reasons outside of their control.

It is a common concern for individuals considering bankruptcy options to believe that bankruptcy options will cause them to lose their home, car or the other things that are important to them. That is not necessarily the case.

Bankruptcies fall last year but Tennessee remains national leader

Though the number of individuals in the Chattanooga area needing to file for bankruptcy fell to a 10-year low last year, and the number of foreclosures also fell, Tennessee remains the leader in the nation for personal and business bankruptcies. In addition, increased interest rates and other factors are expected to increase the number of bankruptcy protection filings in the coming year. During 2016, 5,689 consumers and businesses filed for bankruptcy protection in the Chattanooga bankruptcy court. In addition, commercial bankruptcy filings increased by 26 percent.

Tennessee remained, however, number one for bankruptcy filings among all states during 2016. Tennessee residents filed for bankruptcy at greater than twice the average national rate during 2016. Chapter 13 reorganization bankruptcy protection is more common for consumers in Tennessee than Chapter 7 liquidation bankruptcy. In Chattanooga bankruptcy court during 2016, 61 percent of bankruptcy filings were Chapter 13 filings, while, nationally, 38 percent of bankruptcy filings were Chapter 13 filings.

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