Wage garnishment is one of the most misunderstood collection practices in Tennessee. The procedure is commonly used by parties who have obtained a court judgment for money to collect the amount due from the person who owes the money, i.e., the judgment debtor. Filing a bankruptcy petition is usually the most effective way to stop garnishment.
Tennessee business owners who decide to file a petition for bankruptcy under Chapter 11 of the Bankruptcy Code intend to reform their company's finances and to emerge from bankruptcy slimmed-down and healthy. One of the most effective tools to achieve this intent is debtor-in-possession financing.
When a small business in Rockland County is failing financially, the owner usually considers two types of bankruptcy - a dissolution under Chapter 7 of the Bankruptcy Code or reorganization under Chapter 11. Choosing the former usually means that the business will ultimately be dissolved, and the latter may cost many thousands of dollars in filing fees and attorney costs. A compromise is provided by provisions in the Bankruptcy Code directed at small business bankruptcies - the so-called "small business case."
No one in Tennessee really plans to become bankrupt, but unexpected life events, such as a major illness or loss of a job, can create a financial crisis that may seem insurmountable. Fortunately for people who are facing such a crisis, the United States Bankruptcy Code provides relief.