28 Mar Bankruptcy for Fruit of the Month
Bankruptcy is not just for individuals. Companies can file for bankruptcy too, but they sometimes file a Chapter 11 reorganization, to help them deal with their debts and stay in business.
Harry and David fileda Chapter 11bankruptcy. The company famous for Oregold Peaches (9 for about $30), Fruit of the Month Club, and lots of jams and snacks and gift baskets has filed a reorganization, which means that it will continue to operate but it will trim it’s operation, likely writing down debts and possibly closing retail storesand rejecting leases.
Bankruptcy attorneys for business debtors often know their exact plan of action when they file a Chapter 11 case. Theyprepare and distribute a plan of reorganization to it’s creditors to be voted upon and approved by a bankruptcy judge.
Many companies are finding that it is difficult to maintain the income to support the expansions made during the economic boom now that the economy has fallen and people are spending less. Reorganization bankruptcy may be the only way a company can continue to stay in business.
Rather than shut down completely, it provides a plan of repayment that allows it to operate profitably by stretching out payments and/or reducing debt and costs. Large companies might file to reduce it’s debt load or to get out of unfavorable contracts such as long term leases, employment agreements or pension plans.
It is becoming more common for individuals to fileChapter 11for a number or reasons, primarily because of the higher debts borrowed to buy real estate over the last decade.
However, for most ordinary people who want to reorganize, Chapter 11 isn’t usually a good option.
Individuals can file for Chapter 11 but it is an expensive and complicated process. If a person files Chapter 11 they usually havea lot of debts and money, or a businesses.
Chapter 13 is a lot easier and less expensive, and provides protection for people while reorganizing their budgets and debts.
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