When Tennessee residents consider filing for bankruptcy, they have likely decided that they wish to have a better grasp on their finances. However, because bankruptcy filings can be complicated proceedings, parties will likely want to understand what options may work best for them and what factors could potentially arise as their cases proceed. It was recently reported that one man in another state faced a considerable change during his bankruptcy proceedings.
Apparently, the man had originally filed for Chapter 13 bankruptcy in order to handle the approximately $2.5 million in debt that he had accrued. Because Chapter 13 works with a payment plan that allows individuals to pay back debt over time, the man's repayment would likely have lasted several years. However, the judge in charge of his case apparently did not feel that Chapter 13 was best for his situation.
Because the bankruptcy judge believed that the man had a tendency to be dishonest with the courts, she ordered that his Chapter 13 filing be converted to Chapter 7. As a result, the man must now go through liquidation in order to pay back his debts in a shorter amount of time than the Chapter 13 plan would have allowed. It was noted that a condominium was among the assets that would face liquidation.
Because legal cases can face a variety of unexpected occurrences, individuals who are interested in filing for bankruptcy may wish to consider seeking assistance. An experienced bankruptcy attorney could help Tennessee residents better understand their options and how they may be able to move forward as smoothly as possible. Information on Chapter 7 and Chapter 13 bankruptcies is available from reliable resources.
Source: arstechnica.com, "Judge: Prenda lawyer must sell condo, liquidate assets to pay $2.5M debt", Cyrus Farivar, Dec. 4, 2015