Chapter 11 bankruptcy can be a useful tool to buy time to pay your creditors.
No two people have the same financial situations, which also means no two people handle their debts the same way either. It's a fact not lost on people in New York where the sudden loss of a job or serious illness or injury could just as easily create a challenging situation here as it could anywhere else in the country.
Chapter 11 bankruptcy proceedings are clearly the preferred choice for New York companies, but why is that? The main reason why companies prefer Chapter 11 -- over Chapter 7 for example -- is because Chapter 11 proceedings allow a company to remain in operation. Essentially, Chapter 11 gives companies the ability to reorganize their debts so they can climb out of financial trouble and establish a more solid financial stance in the business sector again.
Clothing store Joyce Leslie is headed into bankruptcy, and the chain is preparing to sell assets as part of the agreement, using the capital that is generated to pay down a portion of the debt.
When you think of Chapter 11 bankruptcy, do you imagine huge, international corporations using it? While giant companies can use it, the popular idea that it is most often used by these big corporations is actually false. Most of the Chapter 11 filings that are put in every year come from small businesses.
If you're filing for Chapter 11 bankruptcy in New York, you likely still have a reliable income stream. Your debt just doesn't match your income as well as you'd like. You need to reorganize to find an affordable payment plan and a way to run your business so that you get out of debt.
The New York City Opera had to put in a bankruptcy filing over two years ago, unable to make ends meet. In a city so centered around culture and the stage, it's no surprise that two groups have stepped forward with revival plans to get it going again.
Some New York residents may remember a time when A&P was their family's go-to grocery store. Known as the Great Atlantic & Pacific Tea Co, A&P once controlled 4,200 food stores nationwide. That was long ago, in the middle of the last century, before consumers were lured away by Wal-Mart, discount stores and specialty chains.
The answer is "yes," but a consumer rarely is in a position when this is needed or desirable. Chapter 11 is a type of bankruptcy that is suited to businesses just as Chapter 7 and Chapter 13 are designed to benefit consumers. An individual is not prohibited from filing for Chapter 11 bankruptcy -- other types of bankruptcy are often more suitable -- but it's worth learning more to compare this bankruptcy with other types.
Because everyone’s living situation and financial resources are unique in some way, there is no “one size fits all” approach to fixing problems with debt. Besides debt settlement, there are several forms of bankruptcy that people may qualify for, including Chapter 7, Chapter 13 and Chapter 11 bankruptcy.