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Butcher shop files for chapter 7 bankruptcy

How am I going to pay off my mortgage? How do I prevent all of these creditors from harassing me every day? Are there any strategies or plans I can make to resolve all of my mounting bills? Residents in Chattanooga and elsewhere are asking these and other similar questions every day. Unexpected circumstances, such as a medical emergency or job loss, often result in financial challenges that were not in an individual's control. Recently, a butcher shop found itself in the same situation and filed for bankruptcy.

The owner of a butcher shop, Normand's Meat, filed for Chapter 7 bankruptcy, which is also known as liquidation. According to reports, the business closed without notice a couple of months ago, angering longtime customers. According to the butcher shop's bankruptcy filings, Normand's Meat owes almost $150,000 to over 50 creditors. Creditors of the butcher shop include meat club members and suppliers.

Chapter 7 bankruptcy allows a debtor to collect all of their assets and sell them. The money is then used to pay off the debt. Any debt that is not paid for through the selling of the property and assets is then discharged. Filing for Chapter 7 provides debtors with the advantage of having personally owned items exempt from the bankruptcy. Future earnings are also exempt. Filing for Chapter 7 is also a quick process. However, a disadvantage of filing for Chapter 7 is that it will negatively affect a debtor's credit score for up to ten years, which will make it difficult to take out a loan or to purchase a house. Also, some debts, including student loans and child support payments, are not dischargeable under Chapter 7.

For some individuals, handling an overwhelming debt may be difficult. In these times of financial uncertainty, some individuals can seek a fresh financial start through Chapter 7 bankruptcy.

Source: SouthCoastToday, "Normand's Meat files for Chapter 7 bankruptcy," Natalie Sherman, Jan. 2, 2013

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