Many individuals in eastern Tennessee who are wondering about filing a bankruptcy petition are often puzzled by the differences between a Chapter 7 and a Chapter13 proceeding. Depending upon a person's individual financial situation, the differences can be subtle and complex, but understanding certain major features of each type of proceeding can help make a sensible decision.
The great majority of bankruptcy petitions filed in Bradley County and in Tennessee at large are filed by debtors seeking to have all or a portion of their debt load erased by the bankruptcy court. The rare exception is a petition filed against a person or an entity by three or more creditors asking to have the defendant declared bankrupt and to have the court take charge of the debtor's assets. Such petitions are called involuntary bankruptcies, and they are used by creditors to freeze the assets of an entity who may be mismanaging or wasting its assets.
When residents of Bradley County contemplate filing a bankruptcy petition, one of their most bothersome concerns is whether they can keep their house or automobile. The bankruptcy process provides several alternatives for keeping essential assets, but one of the most important techniques is executing a reaffirmation agreements in which the debtor agrees to keep making payments on a loan secured by a lien or mortgage.
Many people were saddened by the announcement of Sears' bankruptcy, but a smaller group experienced even greater sadness when iconic guitar maker Gibson announced its bankruptcy in May of this year. Based in Nashville, Gibson manufactured many types of guitars, including both electric and acoustic. But its most famous product was the electric "Les Paul" model. The recent announcement that Gibson was emerging from bankruptcy gladden the hearts of many guitar aficionados.