THE BANKRUPTCY SITE » chapter 11

Company of Beautyrest Mattress Announced Plans of Filing Chapter 11 Bankruptcy

Bankruptcy-Site.com — Mon, 28 Sep 2009 09:30:29 +0000

The company who owns Beautyrest Mattresses, Simmons Co., has already brought forth its plans on filing for Chapter 11 bankruptcy . This has yet again resulted from change of consumers’ spending habits putting off purchases for luxury items, personal effects and other expensive products which are not part of the basic necessities in life.

Simmons Co. has been feeling the slump in its sales which significantly fell in the previous months. This resulted to growing amount of debt and net loss for the company. It is expected to confer with its share holders and bank lenders prior to filing of Chapter 11 bankruptcy . This move is positively seen to help lower the company’s incurred debts and continue on with its operations.

The previous year posted a $12M profit for the company, however, this was not sustained due to the global economic recession that occurred. It already caused the closure of an office in Atlanta with some employees being laid off based on reports.

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The Cost of Filing Bankruptcy

Bankruptcy-Site.com — Sat, 29 Aug 2009 08:02:50 +0000

Filing for bankruptcy requires a long process for most cases being filed. This is because there are many aspects that need to be meticulously verified by the court and the trustee who will be assigned for the bankruptcy case. Each petitioner has a different financial situation which requires different length of time to be finalized. More often than not, amendments of the bankruptcy case filed takes place. This is anticipated especially during the course of the bankruptcy proceedings.

Many people, a sole proprietorship or a company owner, are at loss when it comes to the cost of filing bankruptcy. All they are aware of is the filing fees with information that can be easily obtained from the Administrative Office of the US Courts. Sometimes, they would know someone who has gone through the bankruptcy process who can tell them about the filing fees. What is left to learn is the extent of cost that one should expect from the beginning of filing bankruptcy until the very end.

As mentioned, filing fees are necessary in order to jumpstart the process. As of this time, the filing fees for chapter 7 bankruptcy is $299, for chapter 13 is $274 and for chapter 11 is $1,039. It is best to verify with the Administrative Office of the US Courts for any changes of the filing fees ahead of time if one can confirm the date of filing. For individuals, credit counseling must be attended prior to filing of bankruptcy. The fees here will be for the account of the applicant, too.

Aside from the credit counseling, there are also costs involved when the bankruptcy proceedings are already with the courts or supervised by the trustee. This includes, but not limited to, court fees, amendment fees, lawyer’s fees and the likes. In order to get an approximation of the how much it will cost a petitioner, they may ask from bankruptcy lawyers who can give him an idea on the ballpark figure. It cannot get very accurate since the fees may change depending on the nature of the bankruptcy case filed or the time the bankruptcy case will be filed.

Filing for Bankruptcy

Bankruptcy-Site.com — Sat, 29 Aug 2009 08:00:00 +0000

A company or individual who decided to file for bankruptcy now faces the reality of the beginning of the bankruptcy process. Basic as it may seem, many are not aware of the initial steps in filing for bankruptcy. A legal process such as this requires careful steps to meet each requirements required by the courts.

A company or individual filing bankruptcy now hires a bankruptcy attorney to assist in the bankruptcy process. A personal bankruptcy is a little less difficult to manage since this involves the individual’s household assets and liabilities whose documents may take less time to gather. A corporation, on the other hand, that flies for bankruptcy will need more time to collect its financial documents due to a much bigger operations it is involved with. The financial documents include, but not limited to, list of all debts, assets, liabilities, tax documents and loans. Forms are also filled up which will be submitted along with all these financial documents.

The type of bankruptcy should be determined based on what grounds is appropriate for the petitioner(s). Chapter 7 may be filed by an individual, proprietor and corporations seeking for the discharge of most debts. Chapter 11 is for corporations and partnerships and Chapter 13 only caters to individuals. Both chapters generally require the petitioners to provide a re-organization or re-payment plan to be presented to the trustee and creditors for the hope of regaining their financial control of finances over a period of time.

As mentioned, a bankruptcy attorney may best represent a petitioner filing for bankruptcy for its technicalities. Missing out on important areas during the bankruptcy process will only cause delays and further financial expenses for the petitioners.

Impact of Bankruptcy on Credit Score

Bankruptcy-Site.com — Sat, 29 Aug 2009 07:57:21 +0000

Now that you have managed to go through and complete a bankruptcy process, it’s about time to take a leap to your fresh start. Getting back on track after bankruptcy is often believed to be difficult. There will be a lot of discouraging words you will hear when getting a loan or a credit card but this should not stop you from doing so. Facts of bankruptcy consequences should have crossed your mind a long time ago and it’s time to face the reality of life after bankruptcy.

First thing to do is begin building a better credit score. Your public records may state your history of bankruptcy but this will not stay on forever. You have the chance to build new credit ratings by being more careful with your spending habits. Financial management is the way you can handle your monthly obligations like paying house bills, loans, tuition fees and others. Since credit cards are very important, you may start applying for one. Expect stricter payment terms and even higher interest rates by credit card companies. It is just their way of protecting their business. You need to regain your credit worthiness so just be patient and you’ll finally get better credit card deals.

If you can maintain regular payments on your credit cards over a period of time, there will be more opportunities of getting loans which can help your credit score even more. Taking on secured loans is another option. You can put your property as collateral for a loan. A financial institution will surely allow this arrangement and give you a loan the soonest possible time. Make sure though that your income can pay for this loan so you will not end up losing your property. Remembering the circumstances that put you to file for bankruptcy should be your guiding light so as not to go back to the same direction again.

Bankruptcy can really affect one’s credit score rating. Nevertheless, this does not mean that the past should hold back a person from getting a better future. Learning the options how to have better credit score rating is the answer.

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Producers of Terminator File for Bankruptcy

Bankruptcy-Site.com — Fri, 21 Aug 2009 06:11:33 +0000

Three companies of Terminator Salvation film producers Derek Anderson and Victor Kubicek, who are also owners of the Terminator franchise rights have filed for bankruptcy Chapter 11. The filing was said to be done a day after both producers have filed a case suing their investors for allegedly pushed them to make bad business decisions.

Anderson and Kubicek were unable to pay Santa Barbara Hedge Fund Pacificor, based in Santa Barbara California, which financed their $30-million purchase of Terminator rights and loaned $9 million for other operating expenses according to LA Times reports.

Terminator Salvation was a huge success in the global arena making a hefty $300 million worth of tickers based on reports. This success is apparently not enough to keep Anderson and Kubicek from settling their financial problems with their creditors.

Terminator fans will wait for sure for more news and information about this and how this may affect long term plans for the Terminator franchise.

Reader's Digest Plans to File for Chapter 11 Bankruptcy in US

Bankruptcy-Site.com — Wed, 19 Aug 2009 05:04:23 +0000

The Reader’s Digest has been known all over America as a monthly magazine full of condensed copies of articles or novels formerly published in other places. For many years since its inception in 1922, it remained consistent with its growing number of followers who enjoy reading different feature stories, trivia, joke pages and how-to articles. According to Wikipedia, it has a readership of 38 million as measured by Mediamark Research (MRI).

Just recently, Reader’s Digest has announced its plan of filing for chapter 11 bankruptcy in order to reorganize the company’s debts and enable it to continue on with its operations. This plan, however, does not include the company’s international operations outside of the US. The move to file for bankruptcy was reported to be due to the decline in circulation and the company’s growing debts. In times like these, people are also stricter on how they spend their money which may have also added to Reader’s Digest’s decline in end user sales.

In line with this, middle of this year, the company has already expressed its move to cut circulation from 8 million to 5.5 million and for a 10 times publication instead of its normal 12, according to Wikipedia. Amid the recent financial situation of the company, it still has a strong follower of consumers in the US. Reader’s Digest is also still among the top selling magazines in its international counterparts.

Frontier Airline Announces Winner of Auction

Bankruptcy-Site.com — Sun, 16 Aug 2009 04:01:55 +0000

The Republic Airways Holdings Inc. has just be announced as the winner in the auction to acquire Frontier Airlines, as part of the procedures under Frontier’s Chapter 11 bankruptcy cases. The selection process was said to be made in consultation the Creditor’s Committee assigned in the carrier’s bankruptcy case.

A press release by the Frontier Airlines Holdings last August 13, 2009 mentioned Republic Airways Holdings Inc. had provided the highest and best bid including a significant improvement from its original investment proposal. Amidst the bankruptcy situation of Frontier Airlines, the company gained a fresh hope with the recently concluded auction. This new chapter for both Frontier Airlines and Republic Airways is expected to retain jobs for the hardworking employees of Frontier at the same time, a more financially stable Frontier is projected to emerge from the auction. The Frontier is set to continue to serve its costumers while undergoing the reorganization process.

Frontier Airlines Holdings Inc. has filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code last April 10, 2008. Southwest Airlines also participated and submitted a bid for the auction.