Some common causes of heavy debt that leads to bankruptcy are medical bills, disability and underwater mortgages. These road bumps in life are beyond people's control. Other times, financial mistakes lead to the need for debt relief. In any case, people with crushing debt in Tennessee should be aware of their debt relief options.
Tough economic times can impact any business and cause a once profitable company to become overwhelmed by debt. Business bankruptcy may be the best option to save a company on the brink of collapse. Also known as Chapter 11 or commercial bankruptcy, this option allows for reorganization of business debts and allows the company to keep its door open. One major airline is facing a potentially more profitable future after filing for Chapter 11 bankruptcy protection.
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.
A Chapter 11 bankruptcy is specifically designed to reorganize the debts of a business. This often allows Tennessee businesses to continue operations, so long as they are able to meet their financial obligations during the bankruptcy process.
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.
It doesn't matter how well something is planned out, things may still go wrong. Such is the case for one man, best known for developing the Levis Commons retail, housing and entertainment complex. Originally, the forward thinking developer had plans to retire at age 53 -- but he's now 55 and on the verge of commercial bankruptcy.