If you are spending more now than you were in the past, you may find that your financial situation is quickly becoming more than you can effectively manage. Your debt may be spiraling out of control, and you may not be able to maintain payments. If this is happening to you, it will be beneficial for you to learn about the legal options you have to deal with your debt once and for all.
You may be one of many Tennessee consumers that has debt. It is not uncommon to have liabilities in the form of medical debt, credit card debt, mortgages, personal loans and more. However, it is easy for these obligations to become unmanageable after even just one missed payment, especially for balances that accumulate interest. Statistics may indicate that this is a growing concern for many with household debt rising to over $17 trillion. One of the main reasons for this rise is the increase in personal or household purchases.
Experts suggest that increased spending could be a sign in economic confidence. Statistics say that consumers carry an average balance of just under $6,000 on their credit cards, and almost half say that they would use an increase in income to pay down their balances. Credit card debt is particularly dangerous as it can quickly spiral out of control due to drastic interest rates that balloon or accumulate.
For some, bankruptcy is a practical and effective way to get out of debt. This process allows many to deal with certain types of balances, such as credit card debt or medical debt. If you are unsure of whether this step would be helpful for you, you may find it beneficial to seek the insight of an experienced professional who can offer you insight into all of the options available for your situation.
]]>As a business owner, your primary goal when facing these challenges is most likely keeping your doors open and remaining as close to fully operational as possible. This is where filing for Chapter 11 bankruptcy could potentially prove invaluable. There are many possible benefits to your company from this form of bankruptcy, including the following and more:
What’s more, if you own a business with less than approximately $2.7 million in debt, you may be able to expedite the process while also gaining greater flexibility in your negotiations by means of the subchapter V Chapter 11 bankruptcy option.
In the immediate aftermath of filing for Chapter 11 bankruptcy with the court, you will have the option to create and propose a reorganization plan for your business with the goal of reducing your debt and obligations. Potential specifics within your proposed plan could include the following and more:
No matter the exact intricacies of your plan, it must still be in your creditors’ best interests. You also retain the right not to propose a reorganizational plan, which can allow your creditors to propose a plan of their own for your company.
During the Chapter 11 bankruptcy process, you will now need the court’s permission before making certain company-specific decisions. These can include selling any company assets besides inventory, shutting down or expanding certain business streams, formally initiating or ending any rental agreements, and more. You also will now need to seek approval before becoming contractually obligated to any vendors or unions.
While Chapter 11 bankruptcy could provide you with a strong option toward ultimately giving your company a fresh financial start, there are most likely other debt relief options available to you as well. An experienced bankruptcy attorney can thoroughly evaluate the specifics of your unique situation, allowing you to make the best possible decisions for your company’s long-term future.
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