David Sexton Bankruptcy Law Blog on Lawyers.com

What is Bankruptcy?

Friday, October 2, 2009 by David Sexton

When a business or individual is unable to repay debts, like credit cards, bankruptcy is an option worth considering. When a bankruptcy request goes through the court system, it can assist the individual or business to restructure their debt or eliminate it completely. The two main choices for bankruptcy in Knoxville, Tennessee is either Chapter 7 or Chapter 13.

Chapter 7

Also known as liquidation, a Chapter 7 filing liquidates, or sells off assets, to help pay off outstanding debts. The process takes about three to six months. This is the simplest and easiest way to eliminate overwhelming debt.

Chapter 13

If you are an individual or a sole proprietorship, Chapter 13 is another bankruptcy option that allows for repayment of part or all of the debt over three to five years. This option allows for reorganization of the debt with a fixed time to repay. The payment plan is dependent on the amount of income and the debt involved.

There are, however, several items that cannot be included in a bankruptcy, such as alimony, child support and back taxes. Bankruptcy can, however, help eliminate overwhelming debt or allow for reorganization to assist with repayment, as well as stop harassing phone calls from debt collectors. It is important to retain an attorney who specializes in bankruptcy options in Tennessee and can provide proper guidance and discretion throughout the process.

This article has been provided courtesy of Knoxville Bankruptcy Attorneys:
Sexton & Wykoff
8534 Kingston Pike
Knoxville, TN 37919
Toll-free 888-878-7186

Posted at 13:12 PM
Topic: Bankruptcy
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