Credit cards are a primary payment choice for many Americans. Credit card debt, however, can often become overwhelming when families fall on hard times. Understanding the many elements of debt negotiation and management can help families recover from debt and regain financial stability.
A Chapter 11 bankruptcy is specifically designed to reorganize the debts of a business. This often allows Tennessee businesses to continue operations, so long as they are able to meet their financial obligations during the bankruptcy process.
A personal bankruptcy may be a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. The purpose of a Chapter 13 bankruptcy is to reorganize debt, and Chapter 7 bankruptcy lets a filer liquidate assets to pay off creditors. However, if sufficient reason isn't given for a bankruptcy filing, a court may dismiss that filing. A failure to meet a payment plan is also a reason for a court to dismiss a bankruptcy.
Bad economic times can sometimes drive Tennessee businesses into financial tailspins. Chapter 7 bankruptcy enables business owners to liquidate assets and pay off as many creditors as possible. Bankruptcy proceedings can be complicated by accusations of waste and mismanagement if a business with significant positive cash flow in the past claims to have no assets left at the time of filing.
Businesses dealing with serious financial challenges sometimes can improve their circumstances by filing for commercial bankruptcy to reorganize their assets. This could be the case with a Tennessee shopping center that recently filed for Chapter 11 bankruptcy.