Tag Archives: Business

The $40 Million Missouri Business Built After Bankruptcy

When it comes to the topic of bankruptcy, you can often hear a lot of negative stories. This is pretty understandable considering that bankruptcy is a process to help individuals and businesses overwhelmed by debt. But by that same token, bankruptcy has often been the first step of getting people on the track to financial success. Do not believe us? Here is a Missouri business that blossomed out of the ashes of a bankruptcy. From Bankruptcy to $40 Million! Living in California, Jenny Doan and her husband were living a modest middle-class life. However, their youngest son developed a lymph node tumor. The medical crisis forced the child to undergo many expensive medical treatments. Luckily, the tumor proved benign, but the resulting medical bills proved to be crushing. The family chose to file for bankruptcy. Between the cost of living in California and the cost of repaying their debts, the…
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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…
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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…
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