In an update to a post we did last month, a bankruptcy court has ruled that Eastman Kodak Co. can auction off its digital patents, worth an estimated $2 billion.
Kodak filed for Chapter 11 bankruptcy in January and was initially focusing on reinvesting in its digital imaging products, but decided last month it wanted to generate cash through the selling of patents. In part of a last minute downsizing attempt, Kodak is restructuring its business model by focusing on printing rather than photography. The bankruptcy process has allowed Kodak to remain in control of its specific patents, which they license to other companies like Samsung Electronics, LG and Nokia.
Common among businesses and corporations, Chapter 11 bankruptcy allows a debtor to remain in control of its business plans with oversight from the court. If Kodak were able to generate cash through the selling of its patents, it could reestablish its brands while eliminating unsecured debt.
If you are struggling with financial problems, you could do something similar to what Kodak is doing. A Chapter 13 bankruptcy would allow you to retain control of assets, much like Kodak has control of its patents, and work out a repayment plan for debts. Items like cars or homes can be saved under a Chapter 13 bankruptcy, allowing you to keep your possessions while working on the repayment plan. A Chapter 13 bankruptcy also allows for the discharge of some or all unsecured debt, like credit card debt or medical bills. It’s often the best bankruptcy plan for people who want to restructure their finances.
Talk to an attorney about what Chapter 13 bankruptcy can do for you. If you own a small business that has left you in financial ruin, contact our Maryland and Washington DC bankruptcy attorneys now for a free consultation.