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September 2013 Archives

California city sees too many entrepreneurial bankruptcies

It's no secret that the national economy has been difficult to navigate for about the last five years. Although most people would admit that the current economic climate is definitely more friendly now than it has been, growth is still too incremental and the unemployment rate remains stagnant. There is no telling what the catalyst will be that finally jumpstarts the economy to get back to pre-2008 levels, but many business owners are looking for that moment every day.

Are fewer bankruptcy filings a sign of an improving economy?

Many of our Escondido readers have probably been encouraged by the signs of economic recovery throughout the nation - even if the signs are modest. While the unemployment rate admittedly remains stagnant, consumer confidence seems to be rising. When this happens, people are more apt to start spending money again. However, according to a recent article, this may lead to more Chapter 7 bankruptcy filings.

Eastman Kodak's Chapter 11 bankruptcy wrapping up

There are certain words in the American culture that instantly draw negative reactions. "Bankruptcy" is one of them. Most people probably associate bankruptcy with poverty, excess spending or an inability to manage finances. While it is certainly true that some cases of bankruptcy filings may involve certain aspects of the stereotypes people associate with this legal process, it is important to point out that there are many success stories tied to completed bankruptcy filings. The decision makers in one major company are probably hoping that they will eventually be among those "rags to riches" tales.

Chapter 7 filing for homebuilder despite housing market recovery

Most of our Escondido readers know that the bankruptcy process can be different for individuals and businesses. Many businesses will try to go through the Chapter 11 bankruptcy process, which allows the company to attempt to reorganize the business and consolidate debt in an effort to remain in operation for the long term. Individuals, on the other hand, often prefer the Chapter 7 bankruptcy process, which allows a debt holder to liquidate their assets in an attempt to pay off creditors. Any debt remaining after this process is complete is usually discharged. However, what many people may not realize is that Chapter 7 is also available to businesses. But, the unfortunate reality is that when a business files for Chapter 7 that is usually the end of the enterprise.