In this light, there . . . → Read More: How Does Personal Bankruptcy Work?]]> Bankruptcy laws were created in order to extend help to people who are seeking for assistance on their debt problems. The debts should be those which were honest debts incurred while living a decent life and not for the purpose of deceiving the government to discharge debts acquired from unnecessary and luxurious spending.

In this light, there have been laws passed to guide individuals in filing bankruptcy . One of the initial requirements is getting and securing a credit counseling certificate mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCA). Credit counseling must take place 180 days before the application. Another requirement is having a means test which will determine if the debtor’s application holds basis. There is a formula being used per state which takes the individual’s income and compares this to the median income in the state he/she is, as well as under a family number which he/she has. The goal is to identify which particular type of bankruptcy chapter the individual may apply for.

Once the application reaches the court, a trustee is assigned for the case. Meetings with the bankruptcy applicant and his/her creditors will be scheduled. The trustee is responsible in ensuring that the bankruptcy applicant’s statement of debts, liabilities and assets are accurate for the proceedings to carry on. Personal bankruptcy process may take 4 weeks and above depending on the course of the confirmation of the judge, the hearings, liquidation of assets and distribution of its proceeds will take.

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Filing bankruptcy by the company was due to the effects of the global economic recession which lead to consumers cutting down on their budget for leisurely trips. The company’s bread-and-butter is with travel gears which makes it a direct target . . . → Read More: Samsonite Retail Unit Filing Bankruptcy]]> The world-renowned luggage maker Samsonite Co. retail stores have filed bankruptcy as part of its reorganization plans.

Filing bankruptcy by the company was due to the effects of the global economic recession which lead to consumers cutting down on their budget for leisurely trips. The company’s bread-and-butter is with travel gears which makes it a direct target of this situation.
Samsonite Co. has listed $1.5B in debts and $233M in assets as of July 31 in US Bankruptcy Court in Wilmington, Delaware based on reports.

The move of filing bankruptcy aims to repay the company’s creditors and lenders. There is a meeting scheduled to discuss about the handling of the store-closing sales as part of the reorganization. Further developments on the company’s bankruptcy filing are expected to happen within the next few weeks or months.

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We’ve heard about bankrupt stores in the news . . . → Read More: Conditions of Bankrupt Stores and How it Affects Consumers]]> Bankruptcy affects a lot of companies in the country. As a matter of fact, there are a number of popular stores which have already filed for bankruptcy since last year. Numbers of which are increasing for 2009 and are expected to do so until the end of this year.

We’ve heard about bankrupt stores in the news or read about it on the papers. Many stores are forced to file for bankruptcy because of looming amount of debts they now owe. These stores are no longer able to sustain their expenses because of sudden drop of sales of the company. Most of bankrupt stores have felt the impact of the recession as early as 2 – 3 years ago. Although they are still able to keep the business running, many reports have revealed that sales of these stores are actually declining year by year. In general, a company with sales problem will not turn to bankruptcy immediately. Instead, it will create more opportunities or programs for the company. It will do aggressive marketing strategies in order to keep customers from buying. It takes time before a company can finally say that it needs some kind of external financial assistance. Bankruptcy is mostly the best solution.

There is a general notion that once a store files for bankruptcy , it will eventually cease to operate. This is not always the case. Some companies file for Chapter 7 bankruptcy in the light of being relieved of most of its debts. There are some, however, which files Chapter 11 bankruptcy hoping to regain the financial control of the company by buying some time to repay its debts from its creditors. There is an allowance extended to these companies given they have a viable proposal on how to continue on the company’s operations.

How are people affected by bankrupt stores ? Consumers are directly affected with the growing number of bankrupt stores in the country. This is in terms of the products bought from such stores. Items may carry warranties with it as a guarantee in any case of manufacturer’s defects that can cause the item to malfunction. Consumers are now confused how to go about asking for support for items of a bankrupt store. Who will help them? Can they still return the product within its warranty period? What about gift cards? Can consumers still use it eventually? These are just some of the questions left hanging in the dark.

Consumers will just have to be patient enough especially on these conditions. There will definitely some sort of guidelines bankrupt stores may provide in lieu of inquiries on warranties, gift cards and the likes.

Global economic recession triggered the increase in cases of . . . → Read More: Bankruptcy in 2008]]> 2008 is the year when economic recession in developed countries began. These highly industrialized nations plunged into financial crisis leading other countries in the brink of economic collapse. A chain reaction of economic decline was expected to happen which led to problems in unemployment, displaced corporations and businesses.

Global economic recession triggered the increase in cases of bankruptcy in 2008 . One of the most affected sectors is the financial institutions engaged in lending services. With huge mortgage debt, these companies suffered a big blow by shouldering the losses in the decline of housing prices. Lending policies were not polished enough to prevent such occurrence. Bankruptcy in 2008 was inevitable. Many companies have sought the protection of bankruptcy laws over its businesses. Financial assistance was the number one problem to sustain large scale companies who took the hardest blow in the global recession.

They say that global recession is far from over and it is going to cause a series of financial difficulties in the years to come. However, recovery from the recession is possible if industrialized nations look upon its economic conditions taking into considerations the problems that led to the global economic downfall. The increase of bankruptcy in 2008 is an indication that financial laws and lending practices should be re-evaluated to prevent another recession from happening in the future.