Tag Archives: #BankruptcyLaw

After Sex Assault Scandal, Will The Weinstein Company File for Bankruptcy?

Will the sexual assault scandal simmering at The Weinstein Company lead to bankruptcy? Not according to Bob Weinstein, but other signs indicate it might happen. According to Variety, the company’s leadership is torn on whether to reorganize in the face of potential bankruptcy. Some members wish to sell the company. Others are concerned that the explosive allegations against Harvey Weinstein could lead to massive liabilities when all potential sex assault and harassment lawsuits are said and done. Still, others worry that the name of the company has been irreversibly tarnished, which will affect its ability to move forward with new projects. And according to TMZ, company leaders are concerned that they might not be able to get rid of Harvey Weinstein. Despite having already fired him, his contract stipulates that he is entitled to mediation followed by arbitration before he is allowed to be fired. His continued employment, if it…
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Perfumania to Shutter Stores in Chapter 11 Bankruptcy

Perfumania, a staple of American malls, has announced that it will be closing 64 stores and filing for bankruptcy. The company is known for its discounted prices on high-end perfume brands, such as Burberry and Dolce & Gabbana. 162 of its stores will remain open as the company attempts to restructure its debts and avoid becoming obsolete. As e-commerce slowly eats away at brick-and-mortar businesses, Perfumania hopes to avoid what has happened to so many other retail businesses. What Is Chapter 11 Bankruptcy and How Can It Save My Business? The main goal of a Chapter 11 bankruptcy is to preserve a business because long-term revenues will be worth more than the value of liquidating the business. Through Chapter 11 bankruptcy, a business owner can restructure finances through a court-approved bankruptcy plan. It helps the business owner reduce obligations and modify payment terms and can also allow debtors to sell…
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What are the Consequences of Bankruptcy Fraud?

Bankruptcy laws are designed to protect honest individuals who find themselves in financial turbulence. But what happens when you are dishonest to the bankruptcy court? Bankruptcy fraud can put you in a world of trouble. When filing for bankruptcy, you are required to sign a number of disclosure statements that your paperwork is “complete and accurate” (to the best of your knowledge). People do make honest mistakes, so those types of errors are not punished. It is when the mistakes are deemed to be purposeful that the matter of fraud comes into question. If the bankruptcy court suspects that anything in your bankruptcy filing is a lie, the trustee will investigate the matter. If they determine that you did, in fact, intend to deceive them in your bankruptcy filing, you could face perjury charges. Perjury is a federal crime, the penalty for which is prison time of up to five…
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