Different bankruptcy resources can help both struggling businesses and consumers. Several Payless shoe stores will soon close their doors in Tennessee after the retailer announced recently that it will close all of its stores in the U.S. The shoe chain is expected to file for Chapter 7 liquidation bankruptcy later in the month. Nearly 30 of the 2,700 Payless stores in the United States are located in Tennessee. The shoe chain decided to liquidate after it was unable to find a buyer for the chain.
The shoe retailer previously filed for bankruptcy a couple of years ago and exited the reorganization bankruptcy process with approximately $400 million in loans. Chapter 7 liquidation bankruptcy is a bankruptcy protection option that is available to both struggling businesses and consumers. Likewise, Chapter 11 reorganization bankruptcy is available to both struggling businesses and consumers. Additionally, as this example demonstrates, it may be possible to go from one type of bankruptcy protection to the other.
Bankruptcy serves as an important resource for both struggling business and consumers. Bankruptcy protection can either help struggling businesses and individuals liquidate their property to repay creditors and enjoy a fresh financial start or reorganization their debts into a manageable repayment plan to enjoy debt relief. The processes may be slightly different in different circumstances but essentially provides the same valuable protections.
Struggling with overwhelming debt can be challenging for anyone which is why bankruptcy protections are available to help a struggling business or consumer get back on their feet. It is important for those considering filing for bankruptcy to be familiar with the different options and how they can help.