Tag Archives: Bankruptcy

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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Bankruptcy Success Stories: Gymboree and More

Gymboree Group Inc., the owner of children’s clothing chain Gymboree, recently announced it was emerging successfully from Chapter 11 bankruptcy. Earlier this year, Gymboree downsized the number of stores it has, shedding just under 350. It entered into bankruptcy with a plan, was approved by creditors and is now on track to begin repaying its debts. Now, the company must maintain market share and profitability in an increasingly competitive retail environment. Business Bankruptcy Success Stories Some companies, upon filing for bankruptcy, simply fade away into the annals of failed business history. But bankruptcy can be a very valuable tool to help a business owner preserve the company. Here are some examples of successful business bankruptcies and where they are now. American Airlines filed for bankruptcy, as many major airliners have at one point or another, in 2011. Three years later, American finished a merger with U.S. Airways Group to form…
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What Is an Emergency Bankruptcy Filing and Should I Consider It?

Sometimes it is necessary to act quickly when filing for bankruptcy. This could be true if you need the protection of an automatic stay right away or if, for some other reason, you cannot wait to complete the majority of the bankruptcy forms. If this sounds like you, then you can file a bare-bones emergency bankruptcy form and file the rest later. Is It a Good Idea to File an Emergency Bankruptcy? In most circumstances, no; not if you can help it. Bankruptcy is a complicated process. It involves a lot of paperwork and for a bankruptcy to go through, you have to honestly disclose all assets, income, expenses and more. The process has strict timelines and steps that you must take in order for your bankruptcy to take effect. Because of how strict the process is, acting hastily is not always the best course of action. You need some…
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