When a business finds itself having financial difficulties, one solution to resolving them is Chapter 11. A recent bankruptcy filing by an Ohio corporation that owns the Oneida and Anchor Hocking brands illustrates why business bankruptcy under Chapter 11 is referred to as reorganization.
You have been putting off the decision for as long as you can, looking for ways to avoid having to petition for bankruptcy. You have exhausted your finances, maxed out your credit, juggled your bills, perhaps even played hide-and-seek with collection agencies. But the time has come when you must face the unpleasant reality that bankruptcy may be the only practical option that you have left.
Chapter 7 bankruptcy is often entered into when people have their financial backs against the wall, so it is understandable that many of these same people want the fresh start that is the implied promise of a Chapter 7 to liquidate as much of their debt load as possible. And overall, that is what this form of bankruptcy protection is able to do: give people with few or no options left a chance to get back on their feet again.
Personal bankruptcy is a good example of salvation that comes with a price. It can enable you to keep things that you might otherwise lose to foreclosure or repossession, like your home and your car. It can help you to get back on your feet financially by discharging debts. It can bring you peace of mind by stopping creditor lawsuits against you and ending collection agency attempts to relentlessly pursue you.
What is a money emergency? It can be a short-term crisis, like not having enough money to pay the electric bill until your next payday over a week from now when the temperature is forecast to be in the single digits for the next five days. Or your child needs unexpected medical treatment for an allergic reaction, and the urgent care center requires upfront payment or insurance coverage, and you do not have either.
Everyone understands that facing financial hardship can be extremely difficult, both mentally and emotionally. It is also no secret that financial challenges can place a strain on marriages. The bankruptcy code is a powerful tool that can be successfully used to eliminate debt; stop garnishments, repossessions and foreclosures; and obtain a fresh financial start.
The term bankruptcy may give some people the image of someone who makes an average income, who has fallen on hard times due to losing a job. But there are many bankruptcies that emanate from financial decisions by people who are worth millions. Many of these stories involve professional athletes.
Most of the attention on how a Chapter 7 bankruptcy petition works in Ohio focuses on the types of debts that can be discharged. Another aspect of Chapter 7 that needs to be carefully considered by anyone contemplating using it as a means of debt relief is how the law treats property in possession of the debtor.
Anyone who has been paying attention to financial news lately has heard that the economy is improving, resulting in a much needed reprieve for many Ohio residents and businesses who have been facing monumental financial struggles in recent years. Perhaps one promising economic indicator is the nationwide reduction in yearly bankruptcy filings.
There are only a few things equal to or more difficult than dealing with large amounts of debt. One example is dealing with a divorce. Financial problems are frequently a source of struggling relationships. These financial issues often force individuals to deal with both a collapsing marriage and collapsing finances at the same time.