Tag Archives: Business

Have Chapter 11 Bankruptcies Increased?

Business Insider recently published an article on how Chapter 11 bankruptcy cases increased by 63 percent since last March. The article used bankruptcy filing data published by the American Bankruptcy Institute (ABI). According to the data, there were 770 Chapter 11 filings this past March. There have not been this many Chapter 11 cases filed in a single month since April 2011. Why are so many Chapter 11 cases being filed? Part of the reason is because many businesses with physical locations, such as shopping mall retailers, are struggling to remain profitable. Brick-and-mortar businesses, as they are sometimes called, are experiencing severe financial difficulties. We wrote a recent blog on Toys ‘R Us that went into more detail on why these stores are struggling. Why Should Businesses File for Chapter 11 Bankruptcy? Businesses may benefit from Chapter 11 bankruptcy if they are struggling financially. In fact, Chapter 11 may give…
Read More »

Posted in Bankruptcy, Bankruptcy - Business | Tagged , , | Leave a comment

How Can Filing for Chapter 11 Bankruptcy Help My Business?

Many people assume companies that file for Chapter 11 bankruptcy are “going out of business.” In fact, there are dozens of well-known examples where businesses used Chapter 11 bankruptcy to survive. For example, Six Flags and American Airlines both thrived after filing. If your business is struggling with its finances, Chapter 11 protections can help by: Halting collection attempts: After filing for Chapter 11 bankruptcy, an automatic stay is issued. The automatic stay halts collection attempts, and can allow businesses to maintain ownership of vital properties and assets. Preserving control of operations: Chapter 11 bankruptcy allows businesses owners and executives to maintain control over most decisions and operations. This can allow businesses to continue operations while paying off debts. Restructuring debts: Chapter 11 bankruptcy restructures business debts. Businesses may be able to adjust interest rates on leases, equipment or other assets. In addition, Chapter 11 can help business owners bring…
Read More »

Posted in Bankruptcy - Business | Tagged , , | Leave a comment

Can Small Businesses File for Chapter 11 Bankruptcy?

Golfsmith International, the largest golf equipment retailer in the world, recently made national news after filing Chapter 11 bankruptcy. People close to the situation claimed that Golfsmith attempted to expand too quickly, accumulating too much debt in the process. We often hear about how large companies like Golfsmith file for Chapter 11 bankruptcy because it makes for an interesting story. Small businesses can also file for Chapter 11 bankruptcy and receive all of the same protections as a large corporation worth hundreds of millions of dollars. There is no income or debt ceiling for filing Chapter 11 bankruptcy. The main goal of Chapter 11 bankruptcy is to save a business by making it become profitable again. This is true for both large corporations like Golfsmith and small businesses facing hard financial times. How Can Chapter 11 Bankruptcy Help Small Businesses? There are multiple ways small businesses can benefit from Chapter…
Read More »

Posted in Bankruptcy - Business | Tagged | Leave a comment