In a move that is attracting the attention of the world financial markets, Eastman Kodak Co. has asked a court to conduct a bankruptcy auction of its digital imaging patents, worth an estimated $2 billion.
The company filed Chapter 11 bankruptcy in January and was initially focusing on reinvesting in its digital imaging products, but it now appears to want to generate cash through the selling of patents. In Chapter 11 bankruptcy, a debtor remains in control of its business with oversight from the court and faces a restructuring of its business. If Kodak were able to generate cash through the selling of its patents, it could reestablish its brands while freeing itself of unsecured debt.
An individual struggling with financial problems could do something similar. A Chapter 13 bankruptcy allows you to retain control of assets, much like Kodak has control of its patents, and work out a repayment plan for debt. Chapter 13 is an excellent option for people who need a financial reorganization. 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 unsecured debt, like credit card debt or medical bills, if money is still owed following the repayment plan.
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 office now for a free consultation.
Law Firm of Kevin D. Judd– Washington DC bankruptcy attorney