I love going to the beach.  For years me and my wife have enjoyed visiting Myrtle Beach, South Carolina 3 or 4 times each year.  It’s hard to visit the beach without seeing a billboard or 20 touting attorney Harry Pavilack.  He apparently does every kind of legal work known to man and is also involved in every kind of business enterprise imaginable.

But times are not good for Pavilack who filed his own Chapter 11 bankruptcy case after an involuntary case was filed against him by three creditors.  In a report filed in the bankruptcy case the allegation is made that Pavilack has been operating pretty much on a “cash basis” since February when a judgment for $2.5 Million was rendered against him.  The purpose of his operation using cash is that it makes it much more difficult for a creditor to collect on a judgment.

We’re not talking about a little bit of cash here.  Pavilack recently turned over to the bankruptcy court over $900,000 he retrieved from the closet in his law office.

In Tennessee you could actually have up to $10,000 in cash in your closet and still keep it when you file a chapter 7 bankruptcy by utilizing the personal property exemption under Tennessee law.  However, don’t plan on keeping $900,000.   A couple who files a chapter 7 case in Knoxville also has a homestead exemption (applicable to the real estate on which your home is located) in the amount of between $7,500 and $25,000.  In most chapter 7 cases by using the exemptions available you will usually be able to keep your house, your car and your household goods.

Certainly Mr. Pavilack’s finances are complicated.  If he hasn’t already done so, he should consult an experienced bankruptcy attorney so that his rights and remedies can be fully understood.  If you’re considering filing bankruptcy you should too.