Most Tennessee bankruptcies are filed voluntarily, meaning that the person or company in financial trouble is the one who files for bankruptcy. However, sometimes bankruptcy can be filed involuntarily when creditors file for Chapter 7 bankruptcy protection for another company. This situation, mixed in with some complex and difficult elements, recently occurred with a law firm dealing with bankruptcy.
Different options are available through the legal system to help individuals eliminate debt and enjoy a fresh financial start.
For Tennessee residents who liked the idea of buying their mobile devices online at cheap prices, Wirefly was the ideal solution. However, the company, which seemed to be enjoying success, has suddenly gone out of business and filed for Chapter 7 bankruptcy. Meanwhile, customers and employees alike are left without a clue as to what exactly happened.
Although all Tennesseans are now allowed access to health insurance due to the Affordable Care Act, their financial problems are not necessarily solved. Although insurance pays for a large portion of one's medical expenses, it doesn't pay for everything. Co-pays and coinsurance must be paid out of pocket, which means that many Americans are left with medical expenses totaling thousands of dollars. It is expected that soon, medical expenses will be the most common reason for bankruptcy, beating out mortgage debt and credit card bills.
Many Tennessee business owners have felt the sting of overwhelming debt. Business environments can change rapidly, and a company that was once profitable can quickly drown in unpaid bills. A comic book outlet from Nebraska recently filed for Chapter 7 bankruptcy after too many negative events caused the company to collapse.
Tennessee is the home of many country music acts. Many talented folks come there in search of fame and fortune. However, the two are not always linked. Even those who have reached celebrity status have trouble paying the bills. Case in point: country singer Eddie Montgomery, who has recently filed for Chapter 7 bankruptcy.
Many Tennessee residents turn to bankruptcy to alleviate overwhelming debt, particularly credit card debt. Many others think bankruptcy will help them dissolve debt caused by tax liabilities. However, using bankruptcy to get rid of tax problems can actually create even more problems.
Chapter 7 bankruptcy is one of the most effective forms of relief from debt. The process generally takes about four months to complete and will discharge most debt while allowing the individual who filed to keep most of his or her property.
Many people in Tennessee likely worry that there is a stigma to filing for bankruptcy -- that it indicates a lack of responsibility. The truth, though, is that anyone can get in over their head when circumstances in their lives change or when faced with unexpected financial challenges.
People who are considering filing for bankruptcy often feel as if they would do so as a last resort. What often happens is that people are dissuaded from filing because they associate bankruptcy with the end -- when in fact, in many ways, it is the beginning; bankruptcy is a fresh financial start for someone who needs it.