When businesses in Nashville file for bankruptcy, most might assume that is it under Chapter 11. This is the form of bankruptcy that allows companies to create a restructuring plan that will hopefully allow them to avoid debt struggles in the future. Yet there may be times when a restructuring is not possible, and the only solution available to a company is to liquidate its assets, repay its creditors and move on. This may be the conclusion reached by a company's management team, or in some cases, the decision might be made for them.
There may be a great deal of negative connotations associated with bankruptcy, yet in reality, such an action is often a filer's best chance at re-establishing themselves in a favorable financial position. Federal bankruptcy laws are in place to prevent people in Nashville from abusing the protections that bankruptcy provides, so the assumption of bankruptcy being misused by people who have been irresponsible with their money is largely incorrect. Indeed, those facing bankruptcy may often be on the verge of financial ruin due to their liabilities when bankruptcy finally becomes a viable option.
When people run into financial distress in Tennessee, it can be difficult for them to see a way out of their current situation. Fortunately, there are several options including consolidating debt and selling off assets to try and turn things around. In some cases, bankruptcy can be a valuable solution that can provide immediate relief. However, people should be aware that like other forms of debt relief, bankruptcy comes with its own set of challenges.
A common perception that many in Nashville may have is that personal bankruptcy simply offers one who has been irresponsible in their financial decision-making a way to avoid the consequences of their actions. The fact that most who seek bankruptcy protection file under Chapter 7 may seem to reinforce this fact. Indeed, according to information compiled by the American Bankruptcy Institute, 127,545 of the 200,159 non-business bankruptcy filings from the second quarter of the 2018 fiscal year were Chapter 7 cases. Yet a closer examination of Chapter 7 eligibility requirements reveals that there are several steps one must take before the opportunity to file under this Chapter even becomes an option.
If you are one of the many Americans who struggle with credit card debt, medical expenses, mortgages and other bills, you may have been contacted by creditors regarding your late payments. Businesses often turn your unpaid, deficient amounts over to a collections agency, who will contact you in an attempt to collect. Collector phone calls may become burdensome, and in some cases, may be considered harassment. Once you file for Chapter 7 bankruptcy, however, you will be saved from harassing creditor phone calls while your bankruptcy is being processed.
If you are one of the many baby boomers in Tennessee, you might be retired already or perhaps you are eyeing the possibility of retirement soon. At the same time, however, you may be experiencing a financial situation that is far from what you once had planned for yourself at this time in your life.
One of the reasons that many in Nashville may be hesitant to consider bankruptcy as a legitimate option to help combat their struggles with debt is the perceived stigma that is associated with it. Some might view those who seek bankruptcy protection as being irresponsible with their money and simply looking for a way to not have to face the actions of their poor financial decisions. Yet this line of thinking might actually reinforce the notion that the decision to file for bankruptcy is a brave one, in that doing so places one in a position to be scrutinized.
As you are attempting to deal with financial hardships outside your control, well-meaning friends, family and associates might be confusing you with their two cents. Bankruptcy should only be used as a last resort, they might say. Or, if you file for bankruptcy, your credit will be ruined for life. You’re taking the easy way out, is another common accusation stated against those who are considering a personal bankruptcy. To preserve your emotional well-being and lift the weight from your shoulders, you and other Tennessee residents should understand the truth about the so-called stigma of filing for bankruptcy.
If you file Chapter 7 bankruptcy in Tennessee, your assets may be seized and sold to repay a portion of your debts. To ensure that you are not left without anything or any means to rebuild, the state affords you some exemptions. In Tennessee, the homestead exemption provides you protection for your home.
While credit-card debt may once have been on top, medical debt has replaced it as the main reason that residents of Tennessee and all other states declare bankruptcy. That may or may not be news to you; it has been leading the list of bankruptcy causes for a few years now.