Filing for Bankruptcy in Knoxville
Types of Personal & Business Bankruptcy
If burdensome debt and troublesome creditors are a part of your every day reality, it may be time to investigate the path of bankruptcy. The bankruptcy attorneys in Knoxville at the law firm of Sexton & Wykoff, PLLC, have the experience and knowledge in bankruptcy law to help you take your first step to a brighter financial future.
Bankruptcy is a federal court process whereby you seek to either eliminate excessive debt or devise a plan for repayment. The paperwork, fees and deadlines associated with filing for bankruptcy can be daunting so choosing an adept bankruptcy attorney will lighten your load immediately.
Types of Bankruptcy
There are two basic types of bankruptcy, liquidation and reorganization. The type of bankruptcy petition you file depends on whether you are an individual or business seeking protection and how much debt you have incurred.
- Chapter 7 - an individual or Knoxville business may seek protection under Chapter 7 bankruptcy with the hope of discharging their debts. First, their assets are sold (liquidated) and those funds are used to repay their creditors. This is a very popular option because petitioners are not required to repay any of their debts. The entire process takes between 4-6 months.
- Chapter 11 - primarily utilized by businesses, this type of bankruptcy is called a re-organization. The petitioner continues to run their business while repaying their debt, which undergoes a considerable amount of consolidation. Petitioner can be an individual if debts and assets are considerable. Filing for Chapter 11 bankruptcy is costly and time consuming.
- Chapter 13 - or reorganization; a payment plan is implemented to repay debt in 3-5 years. The amount the petitioner repays is calculated on how much they owe, the type and amount of debt and how much property they own. If your income is too low to meet your payment responsibilities the court may not allow you to file for Chapter 13.
Filing for bankruptcy, either a Chapter 7, 11 or 13 is an arduous and emotional experience. Don’t overburden yourself even further. Enlist the aid of a skilled bankruptcy attorney in Knoxville if you are residing or operating a business in Knoxville or Eastern Tennessee.
