Tag Archives: Chapter 11

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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Warning Signs that Your Small Business May Need to File for Chapter 11 Bankruptcy

Starting a business is a difficult and trying endeavor. The American Bankruptcy Institute reported that over 24,000 businesses filed for bankruptcy in 2016. That is no surprise considering around 45 percent of companies do not make it to their fourth year of business. However, bankruptcy is not the end of a small businesses, and filing can actually have benefits. Here are some of signs that you may need to consider filing Chapter 11 bankruptcy for your business: You are Experiencing a Cash Flow Crisis If you are having a bad month or quarter, then you may be able to see the light at the end of the tunnel. There are ways to cut expenses to help create more cash flow. But if several clients are paying late, you are several payments behind with suppliers or facing creditor collection actions, then you may want to consider bankruptcy as a solution. Your…
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