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.
That latter situation was the case recently in western Tennessee where a court dismissed a Chapter 13 bankruptcy. The case was filed by a Sequoyah County woman on Feb. 1 and included the property upon which the Back Roads Bar and Grill is built. The case administrator stated that any parties who are owed money in the case would now need to contact the woman directly.
The Back Roads Bar and Grill is located on Old Military Road in Sequoyah County. Construction of an entertainment center on the site started in March, and the last claim on the property was filed in August, according the county clerk's office. First National Bank is the lien holder of the property.
The general contractor who was working on the construction of the entertainment center filed a civil suit against the debtor on June 28. The suit is asking for over $10,000 in compensation. A local attorney stated that the bankruptcy dismissal would not affect the cases he has filed on behalf of other contractors who worked on the project and were not paid.
Anyone pursuing bankruptcy protection will need to consider a range of legal options. The possible strategies in filing for a Chapter 13 bankruptcy include opting out of it at some point and proceeding instead with a Chapter 7 bankruptcy.
Source: Sequoyah County Times, "Justice bankruptcy dismissed, contractors to hold bag," Dianna Dandridge, Nov. 2, 2012