Medical debt continues to be one of the leading causes of personal bankruptcy in the United States. In fact, unpaid medical bills may be the biggest single factor in personal bankruptcy filings.
Understanding voidable preferences in bankruptcy
When a small business in Tennessee is teetering on the edge of bankruptcy, creditors often attempt to persuade the business to pay their claims before filing a bankruptcy petition. While such a transaction may appear to benefit both the debtor and creditor, payments to creditors can often create what are known as "voidable preferences" or "preferential transfer." Such payments are often set aside by the debtor or the bankruptcy trustee, and the money paid to the creditor is returned to the bankruptcy estate.
The basics of Chapter 7 and Chapter 13 bankruptcies
The United States Bankruptcy Code gives individual debtors two basic choices for bankruptcy: Chapter 7 and Chapter 13. The differences between both types of bankruptcy proceedings may be helpful in deciding which proceeding to use.
An introduction to involuntary bankruptcy proceedings
Most bankruptcy proceedings in the Chattanooga area are started by a person or corporation who is struggling with a heavy debt load and an insufficient cash flow. On occasion, a bankruptcy proceeding is started by one or more creditors of the debtor who fear they will not be paid because the debtor will squander its assets instead of paying its debts. Such proceedings are called involuntary bankruptcies, and they operate under a special section of the Bankruptcy Code.
How to tell a minor business hiccup from a major financial crisis
When you first had a dream to become a Tennessee business owner, you might have spent hours upon hours thinking of your future and hoping to see that dream unfold someday. Perhaps, during the start-up phase, you even thought of quitting a few times, as is common for many small business entrepreneurs. You stuck it out and finally arrived at the day when you hung the proverbial shingle and opened your business to the public.
