With A Ch 11 Bankruptcy TN Citizens Can Make A New Beginning

By Stephanie Thompson


Global financial instability, currency fluctuations, job losses and many other factors have cause numerous people and businesses to experience serious financial problems. Of course there are those that are also in trouble because of irresponsible financial dealings. Those in trouble try to remedy the situation by cutting expenses but in many cases the situation is so bad that there does not seem to be a solution. However, by filing for Ch 11 bankruptcy TN residents need to know that this is a serious matter.

Having oneself or a business declared bankrupt is a very serious matter. It is not an easy way out of debt and other financial obligations. Courts are reluctant to grant such an order and they will first make absolutely sure that the applicant is truly unable to meet his commitments. A means test is applied and the financial dealings of the applicant will be examined.

Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.

If a decision is made to proceed with an application, the applicant should understand that it is a very long process that is almost guaranteed to be extremely stressful and often even humiliating. The applicant will have to make all his records and documents available for scrutiny. He will have to explain his life style and he will have to provide a detailed inventory of all his assets.

Once the court accepts the application, a trustee will be appointed without delay. Trustees have wide powers and they will concentrate on satisfying the demands of the creditors, not the needs of the applicant. To do this, they will seize the assets of the applicant and sell them to raise money that can be distributed among the creditors. The applicant will be left with the bare minimum needed to survive.

As soon as the trustee is satisfied that everything possible has been done to satisfy the demands of the creditors, the court will finally issue a discharge. Once this is done, creditors may no longer make demands upon the applicant. However, not all obligations are erased with a discharge order. Secured loans, child support payment, back taxes and maintenance payments must still be paid.

In a large percentage of cases, applicants simply waited far too long before they too action in dealing with their financial problems. The best course of action is to seek help from a lawyer specializing in these matters as soon as it becomes clear that matters are not likely to get better. If there is no other solution than filing in terms of chapter eleven, at least the lawyer can protect his client from the tremendous stress involved.

Bankruptcies have serious consequences. The bankrupt individual will struggle to obtain finance and his credit record will be blemished for years. He may be excluded from applying for certain types of jobs and the seizure of his assets can be crippling to himself and his loved ones.




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