Business bankruptcy has wide-ranging consequences for both the companies that file and the patrons who generated their revenue. A sudden announcement usually results in chaos that leaves everyone scrambling and seeking resolution.
Takata, a Japanese equipment manufacturer struggling since a scandal erupted nearly a decade ago over airbag ruptures, announced that it would file for bankruptcy. The defects were tied to 11 deaths and more than 180 injuries in the United States alone.
As online shopping grows in prominence, retail stores are trying to find ways to preserve both their brick and their mortar. They face and increasingly difficult, if not impossible task of replicating the convenience of purchasing pretty much anything without a customer having to leave their house.
Attorney P. Scott Lowery opened a collection agency in 1994, naming it Collect America Ltd. As a proactive step to grow the business, he subsequently started up a law firm franchise.
For unsustainable businesses finding its way in an ever-changing marketplace, one bankruptcy may not enough. Sometimes, it takes a second filing to determine if they can truly sustain in the future.
With the recession in Pennsylvania lifting, many people are under the impression that getting out debt will now be simple and easy. Unfortunately, for many Americans, this may not be the case. Time magazine recently reported that, while borrowing on credit cards has dropped since 2008 and is nowhere near its peak, it is still very high. In fact, gradual financial recovery seems to have slowly increased national numbers of debt, with the total amount owed to credit card companies sitting at $935.6 billion nationally.
The stress debtors experience before and during bankruptcy usually makes a filing a one-time event. According to Debt.org, only eight percent have filed for bankruptcy at least once before.