When businesses get stuck in debt that they cannot repay, the repercussions can be devastating to a whole community. The purpose behind Chapter 11 bankruptcy protection is not just to protect the business owners but it also helps to protect the entire community.
Sometimes Long Island businesses just need a break so they can stop and recharge their batteries. Chapter 11 business bankruptcy is a way of doing just that.
The medical profession, one might think, is recession-proof. After all, there are always sick people, whether the economy is good or bad. But, in fact, the sluggish economy has taken a toll on doctor's offices in New York and across the country. As a result, increasing numbers of doctors are filing for business bankruptcy.
A commercial bankruptcy has different financial implications than an individual bankruptcy. However, creditors in a business bankruptcy may still seek out personal assets when they back business debts. The following Chapter 11 bankruptcy illustrates how a business may be forced into bankruptcy, even when it has a large number of customers.
A business bankruptcy generally occurs because a company faces overwhelming debt. Companies may file for Chapter 11 to gain some relief from creditors while attempting to reorganize the business so that debts can be discharged. Our New York readers are already familiar with video game maker THQ's Chapter 11 bankruptcy. The company filed for bankruptcy in an attempt to save itself, but an upcoming auction may divest it of its most valued assets, meaning many THQ employees will likely find themselves out of work.
While the term "bankruptcy" may invoke negative feelings, it is often a chance to relieve stressful financial times and reduce the pressures associated with being in debt. In the business world, Chapter 11 actually allows for a company to continue to operate while restructuring current debts. In many cases, a company filing for Chapter 11 can move into the future more viable and competitive. Game maker THQ has recently started the process of Chapter 11 bankruptcy. Similarly sized companies all over Long Island may face the same economic challenges that this business does.
In difficult economic times, a business may seek to settle its debts through a Chapter 11 bankruptcy. Chapter 11 bankruptcy affords a business the opportunity to reorganize and restructure its debts as opposed to selling off all of its assets like in a Chapter 7 bankruptcy. However, when a large company, such as Hostess, decides to commit to a Chapter 11 bankruptcy, resolving disputes can get quite complicated.
Despite their differences, both President Barack Obama and his opponent, Mitt Romney, enjoy wearing Hart Shaffner Marx suits, a brand owned by suit company HMX Group. Unfortunately, HMX Group has found itself in financial trouble, having to file for Chapter 11 bankruptcy reorganization for the second time since 2009. While multiple filings through the years aren't uncommon for bankrupt New York businesses, the filings occurring so closely together indicate a company that's experiencing serious difficulties.
When a large corporation struggles through bankruptcy, it can often affect many areas of the business, including customer service and productivity. A Chapter 11 bankruptcy filing is often one of the more complicated forms of bankruptcy, because it involves the reorganization of debts and assets and relies on working with existing creditors
A business bankruptcy, whether it's a reorganization that keeps the firm in business or a business's liquidation, often involves the sale of assets belonging to that company. The bankruptcy of James Cameron's Digital Domain Productions included the sale of assets related to the company's stake in feature films, including part ownership in "Titanic" and the upcoming film "Ender's Game." The company filed for bankruptcy relief recently in federal court in New York and a week later filed for the same protection in Canada.