Two basic types of consumer bankruptcy cases are provided for under the Bankruptcy Code. The cases are traditionally given the names of the chapters that describe them. Chapter 7, entitled Liquidation, contemplates an orderly, court-supervised procedure by which a trustee takes over the assets of the debtor's estate, reduces them to cash, and makes distributions [...]
A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. Because a chapter 7 discharge is subject to many exceptions, debtors should consult competent legal counsel before filing to discuss the scope of the discharge. Generally, excluding cases that [...]
When a chapter 7 petition is filed, the U.S. trustee appoints an impartial case trustee to administer the case and liquidate the debtor's nonexempt assets. 11 U.S.C. §§ 701, 704. If all the debtor's assets are exempt or subject to valid liens, the trustee will normally file a "no asset" report with the court, and [...]
Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor [...]
Starting July 1, 2010, Tennessee personal property exemption amount increases to $10,000 from $4,000. This is a significant increase from previous exemption which will help bankruptcy filers protect sizeable amount of their property from the bankruptcy trustee. Tenn. Code Ann. Section 26-2-103.
According to § 109 of the Federal Bankruptcy Code, almost any person may be a debtor under chapter 7 only if such person or entity is not a railroad, financial institution, foreign insurance company, and foreign financial institution. A business that is not a partnership, corporation, or business trust, cannot file a separate bankruptcy petition [...]