Tag Archives: #BankruptcyLaw

Why Are More Older Americans Filing for Bankruptcy?

Did you know that 8 percent of bankruptcy filers are aged 65 or older? This number has been trending upwards since 2008. One reason was the recession, which hit the elderly age group hard. And in some states, creditors are allowed to garnish up to 25 percent of a debtor’s disposable income, so bankruptcy can become an attractive option for people who fall behind on their bills. But perhaps the most common cause of senior bankruptcy is medical debt. Medical debt is the number one source of personal bankruptcy filings in the U.S. and given the high cost of healthcare for elderly people, it is easy for a debt spiral to drag down the finances of seniors with healthcare needs. According to the Consumer Financial Protection Bureau, debt collection is the most-complained about product or service for consumers over 62. The incessant calls and predatory nature of these companies can…
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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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