People run into serious financial problems for a variety of reasons: medical debt, mortgage debt, student loans, credit card debt and back taxes, to name only a few. That probably isn't news to a lot of people in Tennessee. It was recently reported that our state has the nation's highest bankruptcy filing rate per capita, at 6.7 filings per 1,000 residents. There is no shame in those numbers; forgiveness of debt is just about as old as debt itself.
Upwards of 20 percent of the population in the United States has experienced difficulty finding full-time work during the past five years. Being unemployed or only getting part-time employment has left many families struggling to make ends meet. Some people have filed for bankruptcy, moved in with relatives following foreclosure or cut unnecessary expenses to survive tough times.
During these difficult economic times, many people in Cleveland, Tennessee, have found themselves facing serious financial challenges, up to and including foreclosure. Filing for Chapter 13 bankruptcy can provide some relief from the pressure of creditors and may even buy homeowners the time needed to keep them in their homes.
When a company files for bankruptcy protection, the goal is usually to restructure the business so that it can stay afloat. Businesses typically file Chapter 11 bankruptcy to reorganize their debts and continue to operate. Reorganization under commercial bankruptcy can help a business get back on the road to financial solvency.
Companies that file for protections under bankruptcy law are often seeking to either restructure their businesses or liquidate assets. Commercial bankruptcy trustees oversee the transactions of a business that has applied for and received such protections.
Bad economic times can sometimes drive Tennessee businesses into financial tailspins. Chapter 7 bankruptcy enables business owners to liquidate assets and pay off as many creditors as possible. Bankruptcy proceedings can be complicated by accusations of waste and mismanagement if a business with significant positive cash flow in the past claims to have no assets left at the time of filing.
Businesses dealing with serious financial challenges sometimes can improve their circumstances by filing for commercial bankruptcy to reorganize their assets. This could be the case with a Tennessee shopping center that recently filed for Chapter 11 bankruptcy.
It should be no surprise by now that many businesses in Tennessee have had to confront financial difficulties in the last several years. Sometimes the financial maneuvers that business owners make come under scrutiny in the bankruptcy process, and this can lead to litigation.
Homeowners in Tennessee who are experiencing financial difficulty and are worried about foreclosure may consider seeking relief through bankruptcy. Though filing for personal bankruptcy is not a solution for everyone having trouble making mortgage payments, the process provides many consumers with the financial protection they need.
The economic downturn didn't simply take people's jobs and homes; it also caused many people to lose their good credit ratings. Still, a lot of people found themselves relying on credit cards and other unsecured debt to survive. With no income to pay those debts off, quite a few Tennesseans were forced to file for personal bankruptcy. That often necessary action is typically accompanied by worsened credit ratings, and Tennessee was recently ranked number 10 on the list of states with the worst credit.