Tag Archives: Chapter 11

Could the Coronavirus Pandemic Lead to More Bankruptcies?

Life is changing for billions of people across the globe as coronavirus (SARS-CoV-2) continues to spread. Here in the United States, there is uncertainty over how a possible shutdown could affect businesses and consumers. In Italy, where authorities are testing thousands of cases each day, most businesses are shut down. An “Italy-style shutdown” is underway in parts of the United States. California recently ordered its residents to stay indoors, with some exceptions. Depending on how the crisis unfolds, recent events could spark numerous personal and business bankruptcies. How Could the Coronavirus Pandemic Affect Families and Individuals? Medical debt is a factor in some bankruptcy cases. For people with chronic health conditions, or those who suffer a serious injury, they could face unaffordable medical bills. People in this situation are likely to have problems paying their other debts. The same could be true by the time the dust settles on the…
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Four Consequences of Waiting to File For Bankruptcy

Are you receiving frightening phone calls and letters from collection agencies? Are your wages being garnished? Have creditors threatened to seize your property? If this sounds familiar, then we recommend that you consider reaching out to a bankruptcy attorney for help. The old fashioned notion of a stigma around bankruptcy keeps people from reaching out to ask questions about their financial options. Many people misunderstand what happens to their credit, finances and personal opportunities if they file. By the time they reach out to file, they have already suffered many of the negatives associated with a bankruptcy.  Fortunately, by filing bankruptcy, one can begin to move forward. Bankruptcy is a way to protect credit and improve financial standing. Depending on your situation, waiting to file for bankruptcy can actually hurt you. Below, our Kansas City bankruptcy lawyers explain potential consequences of waiting to file. Loss of Property and Assets Creditors…
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Chapter 11 Bankruptcy Could Help Sears Survive

Sears was recently granted a $5.2 billion reorganization plan. Under the plan, Sears can continue operating 425 department stores. The plan also allows 45,000 workers to keep their jobs. Chairman Eddie Lampert entered Sears into Chapter 11 bankruptcy in October. Lampert’s bid fought opposition from several unsecured creditors, including mall suppliers and owners. These creditors tried to stop the sale and requested for liquidation of the company. U.S. Bankruptcy Judge Robert Drain for the Southern District of New York rejected the creditors’ claims. He disagreed that the sale would shut out other parties who wanted to purchase the company, and he rejected the idea that Sears has more value to creditors if it failed. Sears argued that the sale was the best solution, and they explained the need to save thousands of jobs. Although Sears’ long-term fate is murky, Chapter 11 bankruptcy will help provide the retailer a lifeline while…
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