This blog recently discussed a national toy retailer that filed for Chapter 11 bankruptcy protection. In general, there are two primary types of bankruptcy protection for both businesses and consumers struggling with debt. The two types of bankruptcy can be broadly understood as reorganization bankruptcy and liquidation bankruptcy. Chapter 11 reorganization bankruptcy is a bankruptcy protection option for businesses with heavy debt burdens that is designed to help them reorganize their debts.
There are a variety of different bankruptcy protections for companies and consumers alike. Major toy retailer Toys R Us recently announced it is filing for Chapter 11 bankruptcy protection. The company is facing a changing retail landscape and significant debt. The company has $5 million in debt and operates 1,695 stores. The Akron area is home to 3 of its stores and one Babies R Us store. The company plans to continue normal operations through the upcoming holiday season.
Financial struggles can impact any family and may arise for a variety of reasons including unexpected medical expenses, unexpected home repairs or because of a divorce. Each of these circumstances is challenging enough on its own without the additional stress financial strain also brings. Chapter 7 bankruptcy can provide important protections for individuals struggling with overwhelming debt who find themselves in a variety of stressful financial circumstances.
People throughout the United States, including many from Akron, Ohio, and the surrounding area, may find it difficult to pay their bills at times. While most people are responsible and understand the ramifications of overspending, sometimes necessary and unexpected purchases must be made with a credit card, which can add up.
While the stock market has been on the rise as of late and the United States continues to recover from the recession from a few years ago, many Americans, including some from the greater Akron, Ohio, area, still suffer from financial distress. Whether you are struggling to find work or simply cannot get beyond existing debts and bills, you are not alone in your plight, and help is available.
In the past, we have spoken about how medical costs are a common cause of bankruptcy throughout the United States, including many from the state of Ohio. Recent studies have shown that bankruptcies are in a steady decline, down each of the last twelve years and a 50 percent drop since 2010. This is good news for millions of Americans throughout the U.S. who are suffering from financial distress. Researchers are now trying to learn how much of a correlation there is between the Affordable Care Act and the decline in bankruptcy filings.
Filing for bankruptcy can reduce or eliminate your debts, but it also has an impact on your credit score. This affects your ability to obtain credit in the future, including a home mortgage. You might worry about this, but it is possible to achieve your dream of buying a house after bankruptcy. It will just take some time and effort.
If you find yourself continually harassed by debt collectors and you feel like there is no relief in sight, there are several options you could take in an effort to improve your financial situation. While you may be able to work with your creditors to come up with a repayment plan, that may not always be a viable option. Although it will impact your credit score for years down the line, one option that you might want to consider is filing for bankruptcy. Personal bankruptcy comes in two primary forms for consumers, Chapter 7 and Chapter 13. There are distinct differences between the two, and you may not even qualify for either.
Each year, medical costs and unpaid bills leave millions of Americans, including many from the Akron, Ohio, area, in debt. As we all know, the high costs of medical treatment can add up quickly, especially for people who are uninsured or without healthcare. These rising costs can even force many Americans into bankruptcy.
There are thousands of Americans throughout the country who are under financial distress. Regardless of how they got stuck in their financial woes, their challenges are real. Every phone call or envelope in the mail could be yet another bill collector. It can get overwhelming.