While the company has identified eight of its restaurants to be closed, it is also seeking buyers for 25 restaurants. A spokesperson from the company stated that it is the company's intent for Applebee's to continue to have a strong presence in the city in which the eight stores will be closed. The units that are scheduled to be closed were built after 2005 and never had sufficient traffic to make the restaurants profitable, especially after the onset of the recession. The franchisee reportedly attempted to work with the landlords to allow the units to remain open, but was unable to reach an agreement.
]]> The company spokesman expressed a hope that the employees at the locations that are scheduled to be closed will be retained or reassigned in as many cases as possible. AppleIllinois stated that it expects to be able to eliminate 1,700 jobs with the possible closure of restaurants. The company has indicated that the closures are not indicative of a larger brand-related issue. There are more than 2,000 Applebee's restaurants that are currently in operation. All except a few of the casual-dining restaurants are franchised.Businesses may opt to file for Chapter 11 bankruptcy to reorganize their finances. The Chapter 11 bankruptcy process can be complex, especially when larger franchises and large corporations are involved. A lawyer who specializes in Chapter 11 bankruptcy may be able to walk business clients through the process and help them understand and decide which options are most appropriate for their individual case.
Source: Nation, "Applebee", Ron Ruggless, May 13, 2013
]]>There are certain debts considered 'priority debts" such as taxes and child support, which must be completely paid off. A bankruptcy trustee is also appointed to oversee a strict budget plan, under which the consumer pays a portion or the totality of their debts. The difference between chapter 7 and chapter 13 is that during a Chapter 7, the consumer's assets are sold and most debts are wiped from the slate and the process is over in just a few months.
]]> No matter which type of bankruptcy you file, the first step in the process is attending a government-approved credit counseling session. Once you receive a certificate of completion, you can file for bankruptcy. You must also take a means test if your income is above the median for your area. While some consumers may find difficulty maintaining the strict five year budget plan, one expert says that trustees recognize that emergencies can arise and will work with you to stay on track and allow you to make up for any missed payments.Sometimes people don't complete the Chapter 13 process and either have their cases converted to a Chapter 7, or the case gets dismissed and the consumer is worse off than before. A bankruptcy attorney may be able to you determine if working within a strict five year plan is right for you, or if you would be better served by another bankruptcy solution.
Source: Fox Business, "Chapter 13 Bankruptcy: How it Works", Susan Ladika, May 09, 2013
]]>The bank argues that the company is a small business. Under this definition, the company would not be allowed to file bankruptcy twice in two years. However, attorneys for the company owner argue that they are a retail estate holding company. If this is the case, then the second filing is legal and the sale to the highest bidder will not move forward.
]]> When businesses are no longer able to meet all of their financial requirements, they must take steps to protect assets. Although the owner of the property tried to stop the auction by denying entry to bidders, this is ineffective. The bank has the legal right to enter the property and proceed with the auction, and they can even hold it from another site if necessary.Chapter 11 bankruptcy can be an effective alternative. This is the only bankruptcy option available to small business owners who wish to restructure and continue their operations. It is also the only option for those business debtors who seek to reorganize but do not meet the chapter 13 debt requirements. When businesses are struggling financially, they may find it helpful to meet with attorneys to discuss their options and determine what the best courses of action may be. Attorneys may provide them with valuable guidance regarding the bankruptcy option, how foreclosures work and how they may be able to protect assets.
Source: New Hampshire Union Leader, "TD Bank says Hooksett firm thwarted foreclosure auction", Brendan Clogston, May 03, 2013
]]>According to MyFoxPhilly.com, the number of Americans who file for bankruptcy has slowly declined since 2010. If bankruptcy is on the table for you, you should understand more about your financial options before selecting a debt-reducing plan.
]]> Chapter 7: The Chapter 7 bankruptcy generally involves the liquidation of assets, which helps pay back creditors. This might include a boat, car or home. If the process is successful, filers may be able to take care of most debt. However, the process does not relieve child support, certain tax debts, alimony and student loan obligations. Those who want to file must past a "means test," a qualification test, which confirms that the consumer cannot pay back debts.Chapter 13: Chapter 13 bankruptcy is different in that it reorganizes debt. This form of bankruptcy is reserved for those with higher incomes. Those engaged in this option must follow a debt repayment plan. The process can last up to five years. The benefit of this form of bankruptcy is that filers may be able to keep their home and other assets.
These are the two main forms of bankruptcy. Before you select a debt-reducing plan, you may benefit from investigating all of your options. Regardless of the option that you employ, you will learn new financial habits, which will help you maintain a solid future.
To discover more debt-reducing options that are outside of the bankruptcy scheme, it may help to meet with a qualified bankruptcy attorney.
Source: MyFoxPhilly.com, "Know these bankruptcy facts before you file," Andrew Housser, April 15, 2013
]]>In this case, a debt collection agency called a woman repeatedly, starting way back in August 2012. However, as it turned out, the woman did not owe any money to the particular collector.
]]> The collector said the following to the woman in a message: "I'm calling in regard to allegations that are being filed out of my office attached to your Social Security number." The calls also purportedly included some legal language, which installed fear in the innocent woman.After a lengthy investigation, it turned out that the company did not know the woman's Social Security number, and it was not even after the targeted woman.
The collector claims that the company is not trying to bully people, just resolve unpaid debts. However, in this case, efforts were not successful.
Every person - with or without debt - has specific consumer rights. Moreover, there are federal legal protections, which dictate exactly how and when a collector can contact you. If collectors violate the law, you may have some legal options.
To learn more, contact an experienced bankruptcy attorney in your local area. If you are receiving incessant phone calls from debt collectors, a lawyer can help you assert your rights.
Source: Wood TV, "Fla. debt collector stops calling woman," Henry Erb, March 28, 2013
]]>The decrease in bankruptcy filings may certainly suggest that the economy is improving and that businesses are achieving financial stability once again, but there are still many businesses that have not been able to get their financial situations under control on their own after facing a variety of financial challenges over the last few years. For some businesses, bankruptcy continues to be a viable solution for getting out of debt.
]]> According to the New Hampshire Business Review, five companies filed bankruptcy last month in New Hampshire. Two companies filed for Chapter 7 bankruptcy protection. Chapter 7 allows companies to liquidate assets in order to repay creditors. Three companies filed for Chapter 11 bankruptcy protection. Chapter 11 allows companies to restructure debts so that companies can afford to continue making payments to creditors without disrupting operations.There are many issues companies must address before they decide to file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy protection. For example, companies need to consider whether they will be able to operate after filing for bankruptcy. Companies will also need to consider what assets may be at stake when pursuing bankruptcy. In order to restructure and reorganize debts, companies may need to forfeit some assets or properties, which may affect future business plans.
Business owners and company leaders may have many things on their minds when facing financial hardships and pursuing bankruptcy. Worrying about whether a business is pursuing a debt relief option that will be the most effective and strategic option for the company is not something business owners and company leaders need to worry about. By consulting an experienced business bankruptcy attorney and discussing the benefits of bankruptcy, business owners and leaders may feel more confident in the important decisions they must make regarding a company's financial future.
Source: New Hampshire Business Review, "Five N.H. businesses file for March bankruptcy," Bob Sanders, April 5, 2013
]]>Many New Hampshire residents may remember the legendary singer for her hits such as "I Say a Little Prayer," and "Do You Know the Way to San Jose?" Warwick's publicist reported that the singer had trouble managing her finances throughout her music career during the 1980s and 1990s. Warwick owed back taxes to the IRS and the California Franchise Tax Board. While her tax liabilities went unpaid for years, interest and fines continued to accrue and are still accruing. Warwick's back taxes have been paid now, but her publicist reported that millions in fines and interest remain unpaid.
]]> According to the bankruptcy filing, Warwick's liabilities total $10.7 million. Her assets are estimated to be worth $25,500. Warwick reported that she has tried to negotiate debt repayment plans with the IRS and the state of California over the years. However, Warwick's creditors have rejected the singer's numerous proposals. By filing for bankruptcy, the singer hopes to finally resolve her debt problems with the IRS. Although back taxes usually are not discharged in bankruptcy filings, the singer may be able to effectively resolve her IRS issues since she only owes interest and fines on back taxes that are now paid.Consumers in New Hampshire need to understand that they may not be able to make it through tough economic times or personal financial hardships simply by waiting for things to get better. Consumers with significant amounts of debt need to be proactive when their financial situations take a turn for the worst. As Warwick has experienced, interest and penalties for failing to pay back taxes or other unpaid debts may add up quickly, causing additional financial problems and headaches for consumers.
When debt becomes unmanageable and consumers take immediate action to consult an attorney who can help them resolve their financial problems, consumers may be able to overcome their financial challenges and benefit from the fresh start they deserve sooner rather than later.
Source: ABC News, "Dionne Warwick files for bankruptcy," Jennifer Abbey, March 26, 2013
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]]>Otelco was formed about 15 years ago and has had to compete with major telecommunications companies over the years like AT&T and Verizon Wireless. The company recently lost an important contract with Time Warner Cable Inc., and it has also had to work through other challenges that have affected the company's revenue. In order to avoid serious financial challenges down the road due to these circumstances, the company believes that it is necessary to address its debt now.
]]> By filing for Chapter 11 and restructuring its debt, the company says that it will be able to significantly reduce its long-term debt. The company has already proposed its restructuring plan to its creditors. The company's creditors have approved the restructuring plan, which means Otelco now needs to get approval from the bankruptcy court before it can move forward with its plan and emerge from bankruptcy.When considering filing for Chapter 11 bankruptcy, companies in New Hampshire will want to make sure that their bankruptcy plans are sound and effective. The purpose of Chapter 11 is to give companies the opportunity to reorganize debts so that companies can continue to pay debts off without disrupting their abilities to continue running successful businesses.
To take full advantage of the benefits of filing for bankruptcy protection, businesses will want to make sure to consult an attorney who understands the complexities of running a successful business during challenging economic times.
Source: Bloomberg, "Otelco files for Chapter 11 Bankruptcy in Delaware Court," Joe Schneider and Phil Milford, March 24, 2013
When debt becomes unmanageable, New Hampshire residents may understand that they may need to consider filing for consumer bankruptcy protection in order to resolve their financial problems. Many young professionals might assume that student loan debt will be discharged in bankruptcy when they can no longer manage to make their student loan payments each month, but when folks start doing their research on bankruptcy, they may quickly discover that their student loan debt may be more burdensome than they first realized.
]]> Student loan debt usually is not discharged when folks file bankruptcy. This debt may haunt consumers for decades to come, but this does not mean that consumers will not benefit from filing for bankruptcy protection. Chapter 7 or Chapter 13 filings may still help consumers get rid of other burdensome debts.Student loan debt is typically not discharged in bankruptcy because of strict laws that were passed by Congress in 1977 and 2005 banning consumers from being able to get rid of student loan debt when filing for bankruptcy protection. Only consumers who can prove that their student loan debt is causing an "undue hardship" are eligible to have student loan debts discharged in bankruptcy. Unfortunately, this is difficult for many consumers to prove during bankruptcy proceedings. It is an extremely rare occurrence for a bankruptcy judge to discharge student loan debt.
Consumers who are struggling to make ends meet because of burdensome debts may be able to discharge other debts in bankruptcy, though, which may make it easier for them to afford their student loan payments and basic living costs each month. Credit card debt may still be discharged as well as other debts. Before assuming that bankruptcy will not be beneficial, folks may want to consider consulting an attorney to learn more about their debt relief options and how to manage their student loan debt.
Source: MSN Money, "3 little-known student loan facts," Deanna Templeton, March 13, 2013
]]>Losing or forfeiting assets is often a main concern companies have when considering filing for business bankruptcy protection. Some companies may understand that the only solution for getting out of debt is liquidating assets, but companies may not need to liquidate or lose all of their assets in the process. Businesses may be able to make sure a main asset remains in good hands before liquidating remaining assets and ending operations.
For example, First Place Financial Corp. had filed for Chapter 11 in October 2012 to protect one of its main assets. Now the company is requesting that its case be converted to a Chapter 7 filing. A sale of one of its main assets was recently approved, and now the company wants to liquidate its remaining assets to settle debts with creditors.
]]> The company sold a primary asset, First Place Bank, to another financial institution for $60 million during Chapter 11 proceedings. During bankruptcy proceedings, the company also forfeited another primary asset. Since the company no longer has two of its primary assets, the company does not think that it would be a wise decision to continue to pursue a Chapter 11 filing.The company does not believe it has enough assets to run a financially stable business. The company now wants to file for Chapter 7 so that it can liquidate remaining assets, pay off primary creditors, and dissolve the remaining business. This request will need to be approved by the U.S. Bankruptcy Court in Delaware before the company can proceed with a Chapter 7 filing.
Bankruptcy filings may seem simple because there are very specific rules that outline what companies can and cannot do when filing for bankruptcy protection. However, different strategies may be used to effectively protect certain assets and settle main debts. Before filing for Chapter 11 reorganization or Chapter 7 liquidation, companies may want to consult an attorney to make sure businesses choose a bankruptcy strategy that is most beneficial.
Source: Vindy.com, "FPFC pursuing liquidation," Jamison Cocklin, March 9, 2013
]]>Unfortunately, part of running a business also means that companies may run the risk of being sued. Fighting lawsuits may be very costly for companies, even when companies have set money aside for legal expenses. In some situations a lawsuit against a company -- whether it is credible or unfounded -- may force a company to file for Chapter 11 bankruptcy.
]]> When a business files bankruptcy, legal actions against the company need to come to a halt while the business reorganizes and restructures its debt. If a business files bankruptcy after losing a lawsuit that was filed against the company, the company may be able to challenge debts resulting from the lawsuit. This is another benefit of Chapter 11 bankruptcy that some companies choose to pursue.Last week, the company that owns the "Girls Gone Wild" video series announced that it is filing Chapter 11 business bankruptcy. According to reports, the company has chosen to file bankruptcy in order to protect the company's assets and ability to operate after having lost several multi-million dollar court cases. The company is also challenging some of its debts.
The company's bankruptcy filing lists its assets to be worth less than $50,000. The filing states that the company's debts exceed $16 million. Wynn Las Vegas LLC claims that "Girls Gone Wild" owes Wynn more than $10 million in unpaid debts. The company is now challenging this debt in its bankruptcy filing. The company also listed a $5.8 million dollar award stemming from a lawsuit that was filed against the company as another debt it owes. The company says that it plans to emerge from bankruptcy like so many other successful companies have in recent months.
Source: Bloomberg, "'Girls Gone Wild' Files Bankruptcy to Fight Vegas Debt," Steven Church & Sophia Pearson, Feb. 28, 2013
The magazine is still popular, but it is no surprise that its parent company RDA Holding Co. has faced some serious economic challenges. Many Americans prefer to get their news and other information online instead of subscribing to print publications. As a result, RDA Holding announced last week that it is filing Chapter 11 bankruptcy. The company has stated that bankruptcy will allow the company to eliminate some of its debt while also moving forward by restructuring its business in a way that will allow the company to continue running a successful operation.
]]> The parent company of Reader's Digest announced the bankruptcy filing on Feb. 18. This is the second time the company has filed Chapter 11 bankruptcy within the last four years, but the company claims that without being able to restructure its debt again, the company would find it very challenging to stay in business.According to reports, the company is seeking $105 million in financing so that it can have access to the resources it needs over the next few years to successfully restructure the business and improve the company's finances. The company claims that this bankruptcy filing will not affect its ability to continue publishing Reader's Digest. Employees and freelance writers for the company will also continue to receive their pay while the company files bankruptcy.
Bankruptcy may certainly help to relieve New Hampshire businesses of debts. But bankruptcy may also help to keep businesses intact during challenging economic times.
Source: The Associated Press, "Reader's Digest says bankruptcy financing approved," Feb. 20, 2013
]]>Will you be able to get out of debt? Are you at risk of losing your home? Will creditors start calling you at work? Will your bank repossess your car? If at least one of these questions has crossed your mind and if you are in need of a fresh start, you may want to consider the benefits of filing for Chapter 7 or Chapter 13 bankruptcy in New Hampshire.
Bankruptcy helps individuals get out debt by either restructuring their debts or liquidating their debts. Although Chapter 7 and Chapter 13 bankruptcy filings offer many benefits, Manchester residents need to understand the differences between Chapter 7 and Chapter 13 filings so that they can make sure they choose a debt relief option that is right for them.
]]> Chapter 7 allows folks to get rid of all or most of their debts, while Chapter 13 allows consumers to reorganize their debts in a way that makes it more manageable for them to repay all or some of their debts over a period of three to five years. Typically, individuals with higher incomes are not eligible to file for Chapter 7 bankruptcy protection in New Hampshire when they have enough disposable income each month to pay off a significant portion of their debts under Chapter 13.The way in which debtors achieve debt relief via bankruptcy may be different, but Chapter 7 and Chapter 13 bankruptcy filings offer some of the same protections. For example, creditors are banned from trying to collect loan payments and past-due payments from debtors when they file for bankruptcy protection. This is because an automatic stay goes into effect immediately after a consumer files bankruptcy. An automatic stay prevents consumers from losing their assets while they are in the middle of working out a solution to their financial problems.
If you are worried about your debt and finances, you may want to reach out to an attorney who will be able to help you find a debt relief option that is right for your current financial situation.
Source: WOOD TV, "Navigating debt relief and bankruptcy," Feb. 19, 2013
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