Many people in eastern Tennessee who are contemplating bankruptcy are unaware of how the state's list of bankruptcy exemptions can help them. Under federal bankruptcy law, states are given the choice of requiring debtors to select either federal prescribed exemptions or accept the state's list. Tennessee has passed legislation requiring debtors to use the state's list of exemptions and precluding anyone from selecting exemptions from the federal list.
Most entries in this blog are aimed at persons or businesses who are suffering from financial misfortune and are contemplating bankruptcy. This post is aimed at the creditors of persons and businesses on the verge of bankruptcy. When a businessman hears that one of his customers is going to file bankruptcy and leave him holding a significant unpaid debt, the first instinct is to demand payment in full. Unfortunately, the bankruptcy code includes a concept called "preference." The provision prevents debtors from giving preferential treatment to certain creditors by invalidating the payment of any pre-existing debt occurring 90 days before the bankruptcy petition filing.
Residents of eastern Tennessee who are considering filing a bankruptcy petition have two basic options: Chapter 7 or Chapter 13. The differences between the two chapters are significant and should be understood by anyone who is close to making a final decision about whether and how to file for personal bankruptcy.
Business mergers and acquisitions are often profitable if the merged entities have sufficient revenue to pay the expenses of the merger and handle any debt that was used to finance the merger. In 2016, Tennessee-based Curae Health bought three Mississippi hospitals from Franklin, a Tennessee.-based Community Health System. Now, Curae and its three hospitals are seeking bankruptcy protection because the merger failed to meet the financial projections that were used to justify the acquisition.