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Rockville Bankruptcy Law Blog

Financial hardships leave toy company in need of reorganization

When a business is one of the frontrunners in its respective field, the level of success achieved can be substantial. However, as the number of competitors increases, some companies in Maryland and elsewhere could begin to fall behind, which can lead to financial difficulties despite previous earnings. Should these hardships persist, a business could experience a need for financial reorganization in order to remain operational.

Toys "R" Us began as a vendor for cribs and carriages, and eventually expanded its collection to include toys for children. The company achieved a significant amount of success over almost 70 years of operation. However, with an increase in competition and a change in business models, the company has recently fallen behind financially, and is currently facing up to $5 billion in debts.

Produce company regains success through financial reorganization

As businesses in Maryland and elsewhere reach a certain level of success, some may choose to branch out and take on new endeavors. While these exciting new prospects could lead to a substantial increase in profits, there may also be a certain level of risk involved. After experiencing hardships under similar circumstances, a business in another state was recently able to overcome financial challenges and regain success through financial reorganization.

After reaching a certain level of growth, the organic produce company decided to expand operations to include a transportation service to aid in distribution. Unfortunately, this service experienced challenges that would ultimately force it to shut down three years later. Following the closure, the produce company began to struggle financially, eventually leading it to file for Chapter 11 bankruptcy.

Regional airline seeks protection during financial reorganization

When businesses in Maryland and across the country choose to expand operations, the prospect of new ventures can be exciting, but also intimidating. A similar process could require a significant investment, perhaps with little to no guarantee of success. Should these ventures not go according to plan, a business could be facing periods of hardship, potentially sparking a need for financial reorganization.

A regional airline in another state is experiencing similar difficulties, and has recently decided to discontinue flights in certain areas in an attempt to reorganize its finances. The company says these flights did not turn out as intended, and it needed to cut costs as a result. Financial losses over the past year have reportedly led to significant debts, and the company recently filed for protection via Chapter 11 bankruptcy.

Famous French bistro in need of financial reorganization

Many businesses in Maryland and elsewhere have fallen on hard times at some point in operation. Financial struggles can come in numerous forms, each of which could threaten the longevity of a business. A famous French bistro in another state has recently filed for bankruptcy amidst legal issues, likely in hopes of reclaiming financial stability through reorganization.

According to reports, the famous bistro Church and State has filed for Chapter 11 Bankruptcy after a lengthy legal battle has threatened its financial stability. The issue is reportedly in connection with a lawsuit filed by a former employer accusing the company of failing to pay wages for time worked. The lawsuit has reportedly placed the company under significant financial burdens, eventually leading to a need for relief through bankruptcy.

Considering a wage-earner plan when facing foreclosure

Constantly dealing with the burdens of debt can be stressful and daunting, prompting many individuals to seek guidance in the process. In addition to countless calls and letters from creditors, those who face such hardships may also struggle in other areas of life, such as keeping up with mortgage payments. When an individual in Maryland or elsewhere is experiencing a similar situation, he or she may find it helpful to consider the potential benefits of a wage\-earner plan.

Countless individuals have experienced periods of financial struggle at some point in life, some of which might have been forced to face foreclosure. Continuing to make mortgage payments during a similar period can be difficult at best, and one of the many potential benefits of bankruptcy is the automatic stay. When a person files for bankruptcy, foreclosure proceedings come to a halt, potentially allowing the filer time to form a plan for how to proceed.

Consumer bankruptcy could alleviate significant financial burdens

Many individuals in Maryland and elsewhere have experienced prolonged periods of financial difficulties over the years. Overwhelming debt is a serious issue that can cause a person to struggle to maintain a certain standard of living. In addition, the emotional stress that is often associated with debt can be challenging to endure, and seeking advice on available options, such as consumer bankruptcy, may prove beneficial to removing the burdens of a heavy financial weight.

There are numerous signs that can indicate a need for debt relief. Many who face significant financial burdens have stacks of unopened mail that they may simply be afraid to review. A person may feel as though opening and examining letters involving debt might make things worse. However, ignoring these documents will not make one's debts disappear, and the longer a person waits to take action, the more stressful and intimidating the situation may become.

Misinformation shouldn't be a deterrent to consumer bankruptcy

Filing for bankruptcy is a major decision that often requires a fair amount of consideration. However, a person might also want to do some research and speak with someone with experience in the area before coming to a conclusion. When it comes to consumer bankruptcy, there are several common misconceptions that might deter a person in Maryland from considering it as a viable option in the first place.

Although Chapter 7 bankruptcy can involve the liquidation of certain assets, that does not necessarily mean all assets. One may retain ownership of many -- and in some cases all -- of his or her possessions throughout the process. This myth may also apply to debts as well, as not all are eligible for discharge. Obtaining guidance about the impact on assets and debts may help a person make informed decisions.

Store proposes additional closures in plan for reorganization

Companies in Maryland and across the country often open stores in various locations in an attempt to maximize sales. However, this can also be risky, especially since it is often difficult to predict how well a store will do in a new location. If a company begins to experience prolonged periods of financial struggle after expanding, it could find itself in need of financial reorganization, and thus consider filing for Chapter 11 bankruptcy.

A popular shoe store has recently filed for Chapter 11 bankruptcy, and has requested permission to close over 400 locations in the process. It had already closed as many stores prior to filing, and is apparently continuing to restructure business operations in an attempt to remain operational. The recent request for closure of certain locations reportedly stems from an inability to negotiate a lesser payment for rent with landlords.

Seeking financial relief through a wage-earner plan in Maryland

Personal debt can come in various forms, sudden and gradual alike. An unexpected trip to the hospital can be financially devastating. On the other hand, perhaps a person used a credit card on too many occasions, eventually leading him or her into dire financial straits. Regardless of how it happens, those in Maryland who are considering bankruptcy as a viable outlet for relief might want to consider the benefits of a wage\-earner plan.

Overwhelming debt can put a significant strain on a person's everyday life. In some cases, an individual may possess the ability to make payments on a portion of his or her debt, but the total amount could be too much to handle. A person may also wish to retain possession of certain assets throughout this period, subsequently prompting him or her to explore Chapter 13 bankruptcy.

Reorganization of finances can allow businesses to regain control

When a person or entity buys or takes over a business, the deal may also include various amounts of pre-existing debt. Business owners in Maryland and across the country may believe they are able to achieve success eventually, but in the meantime, financial reorganization may be necessary. When facing a similar situation, a business owner could choose to obtain assistance in the process by filing for Chapter 11 bankruptcy.

This appears to be the case for a YMCA in another state. A new director and board have taken control of the business, and have advised that the entity inherited almost $5 million in previous debts. After attempting to transition into a more successful direction, the YMCA has recently filed for bankruptcy, acknowledging an inability to settle all of the claims against the business.

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