What are the different types of bankruptcy?

In Tennessee, there are several different types of bankruptcy. The most common are Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, and Chapter 13 Bankruptcy. Chapter 7 Bankruptcy, also known as liquidation bankruptcy, is the most commonly used type of bankruptcy. It is designed to allow individuals and businesses to discharge their debts by liquidating some of their assets. In this type of bankruptcy, the debtor is allowed to keep certain assets such as a home and car, while the court liquidates other assets to pay off creditors. Chapter 11 Bankruptcy is generally used by businesses to reorganize their debts. This type of bankruptcy allows the company to maintain control of their assets while the court restructures its debts and liabilities. This is especially helpful for businesses that are struggling financially, but hope to turn their fortunes around. Finally, Chapter 13 Bankruptcy is designed for individuals who are unable to afford their debts. This type of bankruptcy allows the debtor to keep all of their assets while creating a repayment plan for their creditors. The repayment plan often involves reduced payments over a three to five-year period. Overall, each type of bankruptcy has its own set of advantages and disadvantages, and it is important to consider all factors when deciding which one is right for you. It is always recommended to seek advice from a legal professional to determine the best option for your specific situation.

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What are the different types of bankruptcy?

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