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Rockville Bankruptcy Law Blog

Claire's Stores plans to seek reorganization through bankruptcy

The recent advent of online shopping has forced a multitude of businesses to experience a significant drop in consumer traffic in brick and mortar stores. This has left many businesses in Maryland struggling to keep up with the competition, and the financial challenges involved in a reduction in sales can leave a company in need of monetary relief. After experiencing similar concerns, a popular cosmetic jewelry chain is reportedly forming a plan to pursue financial reorganization through Chapter 11 bankruptcy.

Much like many other mall-based stores, Claire's Stores Inc. has reportedly begun to experience the financial challenges that come with the recent decline of consumer traffic. In addition to a decrease in revenue, the company is also struggling to deal with the nearly $2 billion of debt it obtained when it was taken over by another entity. Although the company says it initially sought to overcome these issues by forming business arrangements to sell its products at other retailers, it is reportedly preparing to seek relief through Chapter 11 bankruptcy.

Reorganization: Potential concerns re business credit cards

Many small business owners in Maryland and elsewhere have applied for business-related credit accounts for financial assistance. A small business credit card could prove useful under a variety of circumstances, and such accounts may even offer a variety of perks and rewards. However, owners might find it advisable to use caution with these accounts, as falling behind on payments could lead to financial challenges and a subsequent need for reorganization.

Whether for financial assistance in starting a new company, or for use in day-to-day operations, many owners carry business credit cards. While interest rates and reward programs on similar accounts may differ from a personal credit card, the result of falling behind on payments could be equally as devastating. Much like any other line of credit, owners may find that keeping current on payments is advisable, but in periods where profits decline, this goal could prove challenging.

Pursuing relief from credit card debts via consumer bankruptcy

Many individuals in Maryland and elsewhere have experienced the financial struggles of dealing with substantial amounts of credit card debt. Whether for aid in times of emergency, or for assistance with everyday needs, many have turned to similar lines of credit for numerous reasons, but the relief provided is generally short-lived. Those who wish to seek a solution to financial issues might find it advisable to consider the benefits of consumer bankruptcy.

According to reports, consumer debts increased by more than $11 billion in the past year alone, bringing the total amount owed to just over $1 trillion. Officials assert that credit card debts are responsible for a significant portion of this increase. These reports suggest that the current state of the economy leads individuals to feel less hesitant to take on new debt, but that a similar mindset could lead many into financial troubles.

Reorganization: Dealing with debts as a small business owner

For small business owners in Maryland and elsewhere, the success of their company can have a substantial impact on their lives. During periods of profit, an owner may feel as though the sky is the limit and may even seek to expand operations and increase productivity. However, should the company fall on hard times, an owner may feel the weight of debt more heavily than a larger corporate chain, and the resulting financial burdens could prompt a need for reorganization.

There are a multitude of circumstances that could leave a small business owner facing financial challenges. Without the presence of corporate backing, periods of low profit can prove to be exceedingly challenging, potentially prompting an owner to seek assistance through additional lines of credit, which may only be a temporary solution. However, while these periods are a significant concern for many business owners, they might not be the only issues an owner will face.

Reorganization: When is the right time to pursue debt relief?

With an ever-changing business model and constant increases in competition, many retail companies in Maryland and elsewhere have begun to experience financial struggles. When these issues arise, companies may wish to protect the longevity of their enterprises by pursuing relief. However, with the uncertainty involved in the sales business, some companies may be uncertain when it may be necessary to pursue relief through avenues such as reorganization.

Competing with online stores can be challenging, and this has led many retail businesses to experience ups and downs in sales over time. While a business may seek to overcome these challenges by implementing new strategies, these might not always prove effective, and the cost involved may only further financial struggles. Even companies that continue to bring in profits on product sales can struggle to keep up with financial obligations.

Overcoming reservations re consumer bankruptcy with guidance

There are a multitude of scenarios in which an individual in Maryland or elsewhere could experience prolonged periods of financial struggle. Those who suffer due to overwhelming amounts of debt may wish to pursue relief through the available outlets such as bankruptcy. However, some may have concerns about the process, one of which could revolve around the impact a consumer bankruptcy might have on their credit report.

Filing for bankruptcy is a major decision that will have an inherent impact on one's credit. In addition, a bankruptcy will remain on a person's credit report for up to seven to 10 years depending on the chapter that is selected. This could also affect one's ability to obtain additional lines of credit in the future, and understanding this aspect of the process before deciding on a path is advisable.

Communications company emerges from financial reorganization

Many companies in Maryland and elsewhere have experienced financial struggles at some point in operation. These hardships could threaten the overall health of a business, and should they persist, the owner might find it advisable to consider exploring the benefits of pursuing relief through reorganization. A network and communications company in another state has recently emerged from Chapter 11 bankruptcy and claims that its finances were strengthened in the process.

According to reports, the company recently experienced substantial monetary issues that eventually led it to pursue relief through Chapter 11 bankruptcy. Wishing to remain open, the company sought to restructure finances while minimizing disruption to operations. After reorganizing finances and debts and liquidating certain assets, the company reportedly emerged from bankruptcy protection nearly a year later with a new strategy to improve its growth and achieve success moving forward.

Seeking relief through consumer bankruptcy in Maryland

Many individuals in Maryland and elsewhere have experienced periods of financial hardship throughout life. Those who constantly struggle to keep up with monetary obligations may wish to pursue relief, but they might be uncertain how to achieve this goal. When facing overwhelming amounts of debt, an individual may wish to know if consumer bankruptcy is the correct path with which to pursue a healthier financial future.

While one who is facing substantial amounts of debt may be eager to pursue relief, he or she might be uncertain where to start. One of the first steps is to gain an understanding of each available bankruptcy option, as well as how assets and debts are handled in the process. Each chapter of bankruptcy may provide its own potential advantages and disadvantages, and gaining an understanding of the available outlets could prove invaluable to choosing the correct path with which to proceed.

Consumer bankruptcy: The impact debt can have on one's health

Many individuals in Maryland and across the country have experienced the burdens of debt at some point in life. Although the financial weight of debt can be troublesome enough as is, studies suggest that these issues can also impact a person's physical and emotional well-being. Those who are dealing with a similar circumstance may wish to protect this area of life, and they could find it beneficial to consider pursuing relief through consumer bankruptcy.

According to studies, financial concerns are the leading cause of stress in the nation. Many individuals are already living from paycheck to paycheck, and the financial instability of being unable to save for an emergency can put an emotional strain on a person. If these issues persist, the stress of overwhelming monetary burdens could also create deeper emotional issues, potentially causing one to suffer from conditions such as depression and anxiety.

Hotel and casino seeks relief via reorganization in bankruptcy

When an individual chooses to buy a business in Maryland or elsewhere, he or she may also take responsibility for its debts in the process. In some cases, a new owner might be able to restructure finances and achieve success, while in others, further assistance may be required. Business owners who experience periods of financial hardship under similar circumstances may find it helpful to explore the benefits of reorganization through Chapter 11 bankruptcy.

A hotel and casino in another state has recently filed for bankruptcy protection after facing similar challenges. In 2012, the company underwent a change in ownership, and although those who purchased it attempted to overcome financial difficulties, they reportedly claimed that further assistance was necessary. The owners employ as many as 22 others, and have advised they wish to keep every member of the staff throughout the process.

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