Sunday, January 6, 2019

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

By Stephanie Thompson

It seems as if one cannot turn around without hearing about yet another business or person that is in serious financial trouble. Massive job losses, global financial insecurity and serious fluctuations in the exchange rates are just a few factors contributing to this growing problem. Businesses and individuals in serious trouble do what they can to solve their problems, but in many cases they reach a point where they simply cannot see the way forward. With a Ch 11 bankruptcy TN citizens can try to start anew.

Being declared bankrupt is certainly not a matter of filling out an application and to then ask the court to make an order. The courts are, in fact, very reluctant to grant such applications. They first need to be absolutely certain that the applicant is definitely not able to meet his financial obligations. A thorough means test is normally ordered and if there is doubt, the application will not even be considered.

In a large number of cases, being declared bankrupt can be avoided. In many cases, creditors know that it is in their own interest to draw up a new payment schedule and accept smaller payments each month. It is even possible to approach the courts to make such new payment schedules an order if creditors refuse to negotiate. In some cases it is also possible to obtain financing in order to consolidate all debt.

It is also important to know that the application process is grueling and lengthy. The applicant will be submitted to a detailed examination of his finances, his life style, his spending habits and his income. His assets will be catalogued and he will be prohibited from making a single further financial commitment. Every single record demanded by the court will have to be submitted.

Once the court accepts an application, it will move fast to appoint a qualified trustee. The job of the trustee is to oversee the process whereby all the assets of the applicant is confiscated and sold. Only essential assets necessary for survival will be left. Money thus raised is distributed to the creditors. The trustee is not there to protect the applicant, but rather the creditors.

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.

It is only natural for human beings to ignore problems when they first manifest themselves, hoping that matters will be resolved in good time. This is seldom the case, unfortunately. When it becomes clear that there are financial troubles, the very best thing to do is to seek help immediately. In fact, most bankruptcies can be avoided if only the applicant acted in time.

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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