When you file for bankruptcy, the automatic stay goes into effect. This is a legal order that stops your creditors from continuing their efforts to collect the debt you owe them. It is your chance for a “breather,” a bit of relief from their collection attempts as you organize your bankruptcy case and begin the process of repaying and discharging your debt.
Chapter 7 bankruptcy is often called “liquidation bankruptcy” because it involves the liquidation of the filer’s nonexempt assets to satisfy his or her debts. Certain classes of assets are exempt from liquidation, which means that the filer’s bankruptcy attorney cannot sell them to recover liquid cash to satisfy the filer’s debts.
Many Illinois cities are facing financial difficulties that can potentially be resolved through bankruptcy. According to the policy nonprofit Manhattan Institute, this is exactly what needs to happen. When a municipality is unable to pay back its debt, it may file for Chapter 9 bankruptcy, which allows certain contracts to be broken so the intervening trustee can reallocate money to help the municipality repay its debt.
Limited Stores LLC, the parent company behind women’s apparel retailer The Limited, filed for Chapter 11 bankruptcy in January of 2017. It did this after receiving advice from corporate financial advisors in late 2016 and liquidating its remaining inventory at steeply discounted prices during the 2016 holiday season. It has closed all of its 250 stores and temporarily suspended online sales.
You may be able to cut down your divorce obligations through bankruptcy, depending on the type of obligation you are looking to discharge. In some cases, you can use bankruptcy to cut down on the debts you find yourself facing after your divorce is finalized. In other cases, you cannot legally discharge the debt you are facing. Speak with an experienced bankruptcy lawyer to determine your options for reducing your financial burden.
Digital sports network Scout Media Inc. has filed for Chapter 11 bankruptcy, the process through which a business can restructure it operation to cut down on expenses and ultimately become profitable again after reaching an overwhelming level of debt.
The holiday season is here. It can be financially stressful on anybody, but if you are working through the bankruptcy process or considering filing for bankruptcy in the new year, the holidays can be especially stressful. One of the driving forces of this stress is the pressure to provide for your friends and loved ones this season through gifts, parties, and time spent enjoying seasonal events.
American Apparel Inc., a casual clothing brand known for the domestic production of its products, is preparing to file for bankruptcy protection. This would be the second time the company filed for bankruptcy in two years. Its most recent bankruptcy was filed in October 2015 and by February 2016, the company emerged under new ownership by Monarch Alternative Capital.
When companies are owned by the public through shares of stock, the company is known as a publicly held company. The individuals who own shares in the company are known as shareholders and these individuals are partial owners of the company. Increasingly, shareholders are demanding a say in their companies' bankruptcy choices.