Bankruptcy Court
Bankruptcy Filings Down in US
The instances of bankruptcy filings have been climbing steadily for the last few years but statistics for the first quarter of 2011 appear promising. According to data from the National Bankruptcy Research Center and the American Bankruptcy Institute the number of filings through the course of the first few months of this year is 6% lower than that of the same time period in 2010.
While the small decrease in filings could be a sign of a brighter financial future for many Americans, there are still hundreds of thousands of Americans that are having financial problems. If you are one of the many Americans having trouble meeting your bills each month you should reach out to an experienced Colorado bankruptcy attorney in order to discuss your situation.
Financial problems can cause a tremendous amount of stress, but it’s important that you realize that there could be a number of options available to someone in your situation. A qualified Colorado bankruptcy attorney can help you to determine all of the debt relief options that may be available to you. By discussing your unique financial situation with an experienced professional you can get the advice that you need to help you make the best decision regarding your personal finances.
Taking action at the first sign of financial problems by reaching out to a Colorado bankruptcy attorney can help you to get on the right track to debt resolution. By following the advice of an experienced professional you can work to end the stress of your financial problems as quickly as possible.
Bankruptcy Protection can Help in a Wide Array of Situations
With all of the news stories cropping up it’s easy to see that even major businesses aren’t safe from financial suffering. Powerhouse businesses like Blockbuster and Borders and restaurant chains like Sparrow seem just as susceptible to financial struggle as the small sole proprietorships that try to compete against them.
It can instill an incredible amount of fear when it becomes difficult to pay the incoming bills and expenses with the amount of money that is coming in from sales. In order to make the best of what feels as though it is a hopeless situation you need to seek the advice of an experienced Colorado bankruptcy attorney. Regardless of the size of your business or the level of your financial problems a Colorado bankruptcy attorney can help you to determine the most appropriate course of action for your financial situation.
Your Colorado bankruptcy attorney can assess your level of debt along with your income and assets to determine which, if any, type of bankruptcy protection you might be eligible for or which may be the most beneficial for your situation.
There is a chance that bankruptcy protection may not be the most suitable option for your business financial problems, but that doesn’t necessarily mean that a Colorado bankruptcy attorney can’t still be of service. Your Colorado bankruptcy attorney will be able to provide advice regarding the best course of action for resolving your business debt even if your situation precludes you from filing for business bankruptcy protection.
Colorado-based Dish Network Corp acquires Blockbuster Inc.
Almost a month ago, our blog featured a story on a pending US Bankruptcy Court action for the movie and video game rental company Blockbuster Inc. The national retailer has struggled to compete with new companies such as Netflix Inc. and Redbox Automated Retail. Blockbuster filed for Chapter 11 bankruptcy protection in September, but failed to turn their financial situation around.
Last week, a US Bankruptcy Court judge officially approved the sale between Blockbuster Inc. and Dish Network Corp, a Colorado-based company. At the end of the auction, Dish acquired Blockbuster for an estimated $320 million dollars, with the company expecting to pay closer to $228 million after taking Blockbuster’s current inventory into account.
According to Blockbuster’s legal representation, proceeds from the sale will be used to cover the majority of the company’s outstanding debt. A Bloomberg report stated specific numbers, including almost $180 million dollars to be set aside for senior lenders, in addition to another $10 million for movie studio debts and $20 million for administrative claims.
However, the extent of Blockbuster’s debt cannot be completely covered by the Dish Network sale. Bloomberg also reports that the $320 million dollar settlement will not be enough to pay several of Blockbuster’s secured noteholders and Chapter 11 service providers.
Blockbuster began closing many of its nationwide locations in September as part of its Chapter 11 reorganization strategy, including several Colorado stores. According to the company’s Chief Executive Officer, roughly 1,700 Blockbuster locations will remain in operation at the end of the bankruptcy sale. The CEO did not, however, specify where these locations would be located, leaving the fate of the remaining Colorado locations up in the air.
Source: Bloomberg Buisnessweek, “Blockbuster, Lehman, Vitro, Accredited Home: Bankruptcy.” Bill Rochelle, 8 April 2011
Determining Bankruptcy Eligibility with a Colorado Bankruptcy Attorney
Just because you are felling the mounting pressure of financial distress, it doesn’t mean that filing bankruptcy is the best option for your situation. In fact, depending upon what type of debt you are suffering from there is a chance that filing personal bankruptcy wouldn’t even be an option that was available to you.
There are a number of types of debt that are not dischargeable under a personal bankruptcy. If the majority of your financial burden is caused by these debts, which can include child support payments, medical bills, student loans, etc., there would be little relief available from filing a personal bankruptcy.
In order to determine what debt relief options may be available to someone in your financial situation, you should reach out to an experienced Colorado bankruptcy attorney. Even in cases where the bulk of your financial problems are being caused by debts that are not dischargeable under bankruptcy, a Colorado bankruptcy attorney will still be able to help.
Your Colorado bankruptcy attorney will assess every aspect of your personal financial situation including all secured and unsecured debt, level of income and assets in order to determine what course of action would be the most suitable for you. If you are ineligible for personal bankruptcy of if a personal bankruptcy would do little to help in your situation your Colorado bankruptcy attorney can suggest bankruptcy alternatives and possibly help to negotiate with your creditors to provide some financial relief. Regardless of the individual circumstances of your personal financial problems, consulting with a Colorado bankruptcy attorney is one of the most effective ways of selecting the right debt relief option and beginning to work your way toward being debt free.
Sbarro, nationwide Italian restaurant chain, addresses growing debt
Sbarro Inc., the Italian fast-food chain perhaps best known for its giant slices of pizza, filed for Chapter 11 bankruptcy earlier this week. The company chose the protections offered under Chapter 11 since it will allow their nationwide restaurants to continue operating while they restructure their debt and seek support from their shareholders.
Sbarro currently operates 1,045 restaurants, including international locations in addition to their stores across the US. Yet, the fast-food company saw its costs rise dramatically after the price for basic food items such as cheese and flour skyrocketed during the later years of the last decade. Unfortunately for the company, higher commodity costs arrived at the same time that the recession economy drove many US consumers to stop frequenting the shopping centers where Sbarro restaurants are frequently located.
The combination of these factors caused Sbarro Inc. to rack up a sizeable amount of debt– $368 million dollars according to documents submitted with their Chapter 11 petition.
Yet, Sbarro executives are already working with lenders and senior noteholders to create equity exchanges which will cut that number nearly in half. Company leaders hope that this move, in addition to the protections offered under Chapter 11 and continued efforts to cut costs, will help put Sbarro back on stable financial ground.
Statements from company representatives indicate that Sbarro restaurants will remain in operation throughout the Chapter 11 process, including the several locations scattered across Colorado. In addition, the company has emphasized its commitment to resolving its financial difficulties as quickly as possible in the interests of its employees and loyal customers.
Source: Boston Herald, “Sbarro files Ch. 11, will keep operating.” Keiko Morris, 5 April 2011.
Making Sense of Business Bankruptcy
There is no shortage of information available about filing personal or business bankruptcy online, unfortunately not all of it is completely accurate. Preparing to file a Colorado business bankruptcy is a very serious situation that absolutely can not be taken lightly and that shouldn’t be pursued without all of the necessary information.
In order to determine if filing a Colorado business bankruptcy is the best situation for resolving your finances, you’ve first got to be sure that your particular situation even qualifies for business bankruptcy protection. There are a number of variables that are taken into consideration in order to determine which, if any, type of business bankruptcy protection a business may be eligible for. The best way to determine if your small business is eligible for filing for business bankruptcy protection or if business bankruptcy is the best possible solution for your particular situation is to enlist the help of an experienced Colorado business bankruptcy attorney.
Hiring a Colorado business bankruptcy attorney will help to ensure that no integral information is overlooked during the preparation for filing and that every detail is taken into consideration when selecting the most appropriate form of debt relief for your business. With an experienced Colorado business bankruptcy attorney on your side you can feel confident that your debt will be resolved in a manner that is as quick and stress free as possible and that you’ll be able to pay off your creditors and begin to take the focus off of your debt and begin looking forward to a better future.
Is a Colorado Business Bankruptcy Your Only Answer?
Filing for business bankruptcy protection can provide an immediate sense of relief for small business owners who are struggling with their finances. As soon as the bankruptcy petition is filed the angry calls from the creditors will stop, which is more than enough reason for some small business owner’s to consider filing.
While eliminating the stress and harassment from bill collectors will certainly seem to make things much better for the immediate future, there are a number of other things to take into consideration when contemplating filing a Colorado small business bankruptcy. In order to ensure that you are embarking on the very best path for you, for your family and for your business you need to consult with an experienced Colorado business bankruptcy attorney in order to learn about all of the options that may be available to you.
While filing a Colorado business bankruptcy may very well be the best route to solve your business’ financial woes, there could be more than one bankruptcy option available to you as well. An experienced Colorado business bankruptcy attorney will provide you with a clear list of the pros and cons of each potential debt solution that your could pursue and help you to determine which one meets your unique and specific needs for clearing up your debt. Reaching out to a Colorado business bankruptcy attorney for a consultation is the best way to ensure that you make the most informed decision possible when it comes to your business finances.
Making the Best Financial Decisions with a Business Bankruptcy Attorney
Running into financial problems with your business can be frightening, but it is certainly not a situation where you should make snap decisions based on fear. Clearing up your business financial problems as quickly and easily as possible requires the careful attention to detail that comes much easier with the help of an experienced Colorado business bankruptcy attorney.
A Colorado business bankruptcy attorney can help to immediately neutralize your fear by carefully analyzing your finances to determine the best possible course of action for your situation. Your Colorado business bankruptcy attorney will provide you with the most viable options for resolving your debt based upon your level of debt, your business income and your assets.
By providing you with realistic solutions to your problem and guiding you toward those that are the most suitable, your Colorado business bankruptcy attorney can help to minimize the fear you are feeling and help you to put the focus where it needs to be – on your financial recovery.
A single, poorly thought out decision regarding your business finances can instantly make a bad situation much worse. Don’t run the risk of further damaging your financial status by making rash decisions, get the information that you need to embark on the most appropriate course of action for your situation from the start so your can begin to resolve your debt as quickly as possible. Hiring a Colorado business bankruptcy attorney is the best way to ensure that you’ll avoid unnecessary mistakes and be able to move forward to a better financial future.
Eliminating Business Finance Confusion with a Colorado Business Bankruptcy Attorney
When your business begins to experience financial difficulties it can cause plenty of headaches. The aggravation is only compounded if you haven’t kept meticulous financial records or managed to successfully separate your personal finances from your business finances.
Knowing the next step to take can be very confusing. It’s difficult to determine if your business will even qualify for bankruptcy protection let alone whether or not it may actually be beneficial for your current situation. Prior to making any decision regarding your ailing business you should seek the advice of a qualified Colorado business bankruptcy attorney in order to make the most educated decision regarding your next step.
A Colorado business bankruptcy attorney will be able to evaluate the financial records of your business in order to determine what options may be available to you. There is a very good chance that you may be eligible to pursue more than one option when it comes to resolving your business debt. Your Colorado business bankruptcy attorney will breakdown the pros and cons of all of the options that you may be able to pursue in order to help you make the wisest choice for your situation.
Making the decision to enlist the help of a professional to help clear up your debt is never an easy one, but hiring a Colorado business bankruptcy attorney is the best way to know what options are available to you and which might be the best for your situation.
Eliminating Debt in the Smartest Way Possible
There is any number of viable reasons that your business could be experience financial difficulties, but once you’ve fallen deep into debt what matters is finding the best possible way to eliminate that debt in order to get back on your feet. Rather than wasting time or running the risk of making poor decisions that force your ailing company farther into debt, you should reach out to a qualified professional in order to help you accurately determine the best course of action for paying off creditors.
An experienced Colorado business bankruptcy attorney will examine every facet of your business finances in order to ensure that you are presented with every available option for working to eliminate your debt. Your Colorado business bankruptcy attorney will be able to provide a detailed explanation of the potential benefits of each type of business bankruptcy that you may be eligible for and help you to determine which route will lead to debt resolution in the fastest and most convenient manner.
Even the hardest working business owners and the smartest business people can run into financial problems. Rather than letting the stress of financial duress consume you as your business debt continues to climb you should reach out to an experienced Colorado business bankruptcy attorney who will be able to help you sort through all of the confusion of your current financial situation and present the most clear cut and effective route for you to follow in order to clear up your business debt.
Saving Your Small Business: Colorado Business Bankruptcy Attorney
There aren’t many people that would say that the likelihood of having to file for bankruptcy protection for their business would be a good thing. In some cases though, filing a business bankruptcy with the help of an experienced Colorado business bankruptcy attorney is the only thing that you can do to keep the doors of your small business opened.
When it becomes difficult, or impossible, for you to pay your creditors with the amount of money that you’ve got coming into the business you may have more options available to you than you would have thought. Certain types of bankruptcy allow you to restructure your debt in order to provide the necessary payments to your creditors without having to close your business or liquidate your assets.
An experienced Colorado business bankruptcy attorney will be able to assess your business finances in order to determine if your small business would qualify or benefit from filing for this or any other form of bankruptcy protection. If your small business meets the eligibility requirements of filing for this type of bankruptcy protection your Colorado business bankruptcy attorney can immediately begin the process of filing the petition in order to get your bankruptcy underway.
Just because your business is going through a difficult stretch, it doesn’t necessarily mean that your dream is over. Reach out to a qualified Colorado business bankruptcy attorney in order to find out exactly what options are available to you for resolving your debt so that you can begin to move in a positive direction financially.
Washington Mutual takes next step to exit Chapter 11 bankruptcy
Executives at Washington Mutual Inc.-also known as WaMu-are hoping that the banking giant will be able to exit its Chapter 11 plan sometime in the near future. The company recently received legal approval to progress with its bankruptcy exit strategy, but under the condition that it dispels concerns of insider trading among its creditors.
Bankruptcy regulators seized Washington Mutual’s assets in 2008, after which the company was purchased by J.P. Morgan Chase and Company. After the seizure, representatives from WaMU negotiated a Chapter 11 bankruptcy plan primarily with J.P. Morgan and the Federal Deposit Insurance Corporation. After the negotiation process, several important shareholders expressed their concern that a number of hedge funds were privy to special knowledge during the Chapter 11 process that later allowed them to conduct insider trading.
Among the hedge funds accused of insider trading are Appaloosa Management LP, Aurelius Capital Management LP, Centerbridge Partners LP and Own Creek Asset Management LP. Representatives from each of the companies have denied the accusations, but an official investigation conducted by a committee of equity security holders remains ongoing.
For its part, Washington Mutual claimed ignorance of any wrongdoing during the Chapter 11 negotiations through a statement made by their attorney at a US Bankruptcy Court hearing.
In order to present a new Chapter 11 payment strategy to its creditors, WaMu will have to create a contingency plan which accounts for the fallout that could occur if the accusations of insider trading are confirmed. If the major hedge funds are found guilty of using illegal insider knowledge, observers estimate that approximately $700 million dollars of wealth could move from the large investors to smaller creditors.
Despite these complications, many observers believe that this development moves Washington Mutual closer to financial recovery.
Source: Wall Street Journal. “Washington Mutual Cleared to Seek Votes on Revised Chapter 11 Plan.” Peg Brickley, 21 March 2011.