Bankruptcy Blog for Las Vegas Bankruptcy Lawyer
Nevada Bankruptcy Attorney Erik Severino Blogs About Bankruptcy Topics
Read on for news stories and updated information regarding Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Emergency Bankruptcy Filings, Foreclosure, Garnishment, and other general bankruptcy news from Nevada and throughout the United States. Our Las Vegas Bankruptcy Attorney will share helpful tips and information you need to know to guide you through the bankruptcy process. Enjoy.
Potential Bankruptcy for Forever 21 Clothing Store
Forever 21 is a clothing retailer for teens and fashionable young adults. The company is preparing for a potential bankruptcy, according to reports. The clothing retailer has more than 800 stores in 57 countries. Forever 21 is among the traditional “brick and mortar” stores that have seen financial trouble as young shoppers make online purchases instead of heading to the mall.
American Apparel, Aeropostale, Wet Seal, and Delia’s are among the retails the filed for bankruptcy and/or closed stores in the past five years. A major factor in declaring bankruptcy was the presence of online shopping.
Forever 21, a privately owned business still run by its founders, reports $3.4 billion in annual sales and employs 30,000 workers. The owners are trying to maintain control of the company, but this limist the ability to find funds its company may need to avoid a bankruptcy filing.
“Preparing for potential bankruptcy” could indicate that the fashion retailer has talked with lenders and advisers to restructure its debt, according to reports. Although Forever 21 was / is a strong store presence, internet consumers affect chain stores, and “potentially” Forever 21’s days may be numbered.
In the past several years, American companies that have thrived decades of substantial store business including Sears, Toys R Us, Payless, and Mattress Firm have filed for bankruptcy. Even thought these stores were household brand names, they struggled keeping up with online shopping.
A chapter 11 bankruptcy filing is an option for Forever 21. This chapter filing may offer an opportunity for Forever 21 to restructure debt while continuing to operate the business. If Forever 21 can continue profit, without rebranding or with only closing smaller, less profitable stores, they may not have to completely shut down.
How a $15.00/hr. Minimum Wage Increase Would Affect the U.S.
Federal minimum wage was created in 1938. Since 1938, in the last 81 years, minimum-wage has increased from $.25 to $7.25. For the longest time in history, Congress has not raised the wage (over 10 years). The federal minimum wage is currently $7.25 an hour. The Congressional budget office is evaluating the impact of raising the federal minimum wage. A new report considers what the impact in our country would be if the federal minimum wage was raised to $15 an hour.
Of course, raising minimum-wage would be a hot-topic issue and a reported it 27 million people would benefit from the increase in pay. There are arguments for and against raising minimum-wage to $15 an hour by the year 2025. Some critics opposed to raging raising the minimum wage say employees would lose their jobs because employers would not be able to afford that wage. Currently it is uncertain that the increase in the wage would have an effect on employment.
Toys-R-Us Pays Severance
A bankruptcy judge approved a settlement to be paid to 33,000 former Toys R Us workers. The laid-off employees filed a class-action lawsuit against the company. Workers are receiving $2 million dollars. The law firm representing Toys R Us is getting $56 million. When a company files Chapter 11 bankruptcy protection, pensions and severance payments are considered unsecured debt. This means these debts are less likely to be paid in a bankruptcy, as they are low-priority debt.
33,000 Toys R Us workers awarded to split $2 million severance package
Although awarded $2 million dollars, each of the former Toys R Us workers will receive around $60. News reports indicate that some of the company’s previous employees who gave thirty years of service are disappointed and feel unappreciated and undervalued. Some of the workers are staying out of jobs in retail altogether, indicating other bankruptcies in the industry (Sears, Shopko, Kmart).
Filing Bankruptcy on your Doctor
Filing bankruptcy does wipe out medical debt. When filing a petition, the debtor is required to list all debts and creditors, this includes medical debt and doctors. A Chapter 7 bankruptcy permits unsecured debts, such as medical bills, to be discharged.
A legitimate and common concern is the possibility of a person losing a doctor if they file bankruptcy to discharge medical debt owed.
In an emergency medical situation, regardless of insurance status or the ability to pay, everyone is entitled to initial treatment. A federal law called the Emergency Medical Treatment and Labor Act states that anyone who seeks medical attention at emergency department shall be stabilized and treated.
Can your medical treatment be terminated if you file bankruptcy on your doctor? If you owe your doctor money, and you are required to list that debt in a bankruptcy, you may not necessarily have to find a new physician. One recommendation would be to contact the doctor before filing bankruptcy. It would be appropriate to discuss your intent to file bankruptcy with the doctor to explain your situation. A payment arrangement could possibly be worked out with the doctor’s office, even though the money owed would be listed and erased in bankruptcy.
Bankruptcy Filings Declining in the U.S.
Bankruptcy filings in the U.S., according to the Administrative Office fo the United States Courts, were down .9% from March 2018 to March 2019. The statistics show a nation-wide declining trend since 2011. Bankruptcy cases peaked at almost 1.6 million in 2010, when data indicated an overall increase in filings from 2008-2011.
Eight years later, after the elevated number of bankruptcies in 2010, new bankruptcy filings have been cut in half. Compared to years past, consumer and business bankruptcies are at the lowest in almost a decade. It has been since
Americans may not be pursuing bankruptcy, possibly, in part because of the cost to file. Also, people may not have the assets to protect. Filing a Chapter 7 bankruptcy involves court costs, lawyer fees, and debtor fees. In a Chapter 13, a repayment and debt reorganization plan is constructed which includes these fees. The debtor the course of the bankruptcy case pays back debt.2007 that bankruptcy petitions filed has been this low.
Maker of OxyContin Explores Bankruptcy
The maker of OxyContin, Purdue Pharma LP, my be exploring bankruptcy as an option to acknowledge the liabilities that stem from about 2,000 lawsuits against the company. These lawsuits allege that the drugmaker supported the opioid crisis in the U.S. The litigations accuse the company of misguiding patients and doctors about the long-term risks of using its prescription opioids.
If Purdue files for Chapter 11 bankruptcy protection, the lawsuits would cease, allowing for the company to negotiate legal claims under the direction of a United States bankruptcy judge. Purdue denies the alleged clams against them, disputing that its opioids came with an FDA-approved warning label concerning the risks associated with the pain medications.
Are the Conditions Right to File Bankruptcy in Las Vegas?
A perfect storm has led to snowfall in Las Vegas this week. The great 2019 blizzard took much of Las Vegas and Henderson by surprise. Sometimes a perfect storm in your life can lead you to a financial hardship. When facing financial hardship, it is important that you seek help to assist you with your debt relief need.
In fact, according to a recent study, over spending barely breaks into the top ten reasons people file for bankruptcy. The number one reason for filing for bankruptcy is medical expenses. One trip to the ER can leave someone hundreds of thousands of dollars in debt. According to a Harvard University study, approximately 62% of bankruptcy filings are due to medical bills and expenses. An even higher percentage also had medical insurance that covered a portion of the debt.
Job loss or reduced income is also a factor. With many companies downsizing due to the increase in minimum wage, people are starting to see themselves out of work. Often times employees will take a lesser paying position simply to remain employed. Unfortunately expenses don’t change when income does.
Sweethearts Are Not Being Produced for Valentine’s Day Due to a Company Bankruptcy
It’s hard to imagine a Valentine’s Day without one of the holiday’s most popular candies: conversation hearts. Sweethearts, the candy hearts stamped with messages like, “I LOVE YOU,” “CALL ME,” or “LOVE BUG” will not be available this Valentine’s Day. For the first time in 153 years, the Necco company will not be selling Sweethearts Conversational hearts. Typically, the candy company turns out around 8 billion candy hearts each year.
Operations at the Massachusetts plant that makes Sweethearts and other candy such as Necco Wafers has shut down by the owner of the company. Necco (that stands for New England Confectionery Company) is one of the the country’s oldest operating candy companies (170 years old), making candies like Mary Jane and Squirrel Nut Zippers.
Gymboree Preparing for Bankruptcy
Gymboree, the San-Francisco based major children’s clothing retail store, is reportedly filing Chapter 11 bankruptcy. With over one billion dollars of debt, Gymboree is expected to not only file for bankruptcy protection, but also close all of its stores.
A report from The Wall Street Journal states that the company will file bankruptcy in order to liquidate Gymboree, Crazy 8, and Janie and Jack stores. The Janie and Jack stores may be saved if a buyer is found by the company for the brand. Currently, approximately 139 Janie and Jack stores are in operation across the nation.
The Boy Scouts Consider Bankruptcy
After experiencing huge legal costs, reports say that the Boy Scouts have hired attorneys. The legal fees come from defending the organization against lawsuit claims of sexual abuse against them. Documented cases of sexual abuse has left a black mark on the organization whose foundation honors traditional values, character, and boyhood.
The Boy Scouts are suffering from debt and struggling financially because of the costs associated with defending themselves from sexual abuse accusations. The Wall Street Journal reported that The Boy Scouts of America is considering filing for bankruptcy. A law firm has been hired by the organization for possible assistance with a Chapter 11 bankruptcy filing. Filing the bankruptcy may stop the lawsuits facing the Boy Scouts of America. Bankruptcy might also give the nonprofit an opportunity to negotiate with victims who have sued the organization.
The Automatic Stay – What is it and How Does it Work?
The Automatic stay is a legal term used when a consumer files for bankruptcy protection. It is a stay, which means any collection attempts by a creditor, law suits, or garnishments must stop when a bankruptcy is filed. This provides the relief needed from most collection efforts, and it goes into effect immediately when a bankruptcy petition is filed, and stays in place until the completion of the bankruptcy (discharge or dismissal). The automatic stay is granted for both Chapter 7 and Chapter 13 bankruptcy filings.
If you are experiencing harassment by creditors, the automatic stay can be beneficial. To suspend collection activities against you, the automatic stay will go into effect as soon as you file bankruptcy. The automatic stay is an injunction that helps you by suspending collection attempts as you reorganize your debt or restore your finances.
When an attorney files a bankruptcy petition, a list of creditors is also filed. Each creditor is notified of the automatic stay by the bankruptcy court. Filing bankruptcy may be in your best interest if you require immediate action to stop a foreclosure, wage garnishment, or repossession, as the automatic stay is granted.
Mattress Firm Joins Other Companies Who Have Filed Chapter 11 Bankruptcy in 2018
The largest mattress retailer in the country, Mattress Firm, filed for Chapter 11 bankruptcy. The plan for the company is to close around 700 of its stores. Currently operating 3,500 Mattress Firm stores, 200 will close immediately, as it plans to restructure.
As part of the business restructure plan, Mattress Firm would like to get out of some leases. The announcement of Mattress Firm closures accounts for almost a dozen retail companies that have filed for bankruptcy this year so far. According to a real-estate research firm, a recently-released report states that mall vacancy rates are at 9.1 percent. This is the highest level in seven years.
Joining Mattress Firm in filing bankruptcy include National Stores, Gumps, Brookstone, Rockport, Nine West, Claire’s, The Walking Company, Bon-Ton Stores, Kiko USA, and A’gaci.
What If I Can’t Afford My Chapter 13 Payments?
Chapter 13 bankruptcy in Las Vegas and Henderson isn’t the most popular chapter of bankruptcy to file. However, a chapter 13 bankruptcy does grant debtors a 3-5-year grace period to pay off the extent of their debt. Because this is a repayment plan, Chapter 13 is only available to people with regular sources of income. Debtors who successfully complete their repayment plans can effectively protect their assets and property from Chapter 7 liquidation.
If you find yourself in a Chapter 13 bankruptcy and are unable to make your monthly payments to fulfill your ch 13, you have a few options.
1. You can request a Chapter 13 modification in which you may be able to reduce your monthly payment to a more affordable amount.
2. Additionally, you could also suspend your payments. This is the preferred option if the financial problems you are having are temporary. Your Nevada BK lawyer can help you with this option.
3. Depending on your personal and financial circumstances, you may be able to convert your current chapter 13 bankruptcy to a chapter 7 bankruptcy. This option is primarily for people who are incapable of making their plan payments.
Regardless of which option you may choose. You should always seek the help of an experienced bankruptcy attorney to assure that problems don’t arise. Not making your chapter 13 payments is not the greatest position. However, you do have options.
How Much Debt Do I Need to File Bankruptcy in Las Vegas?
- Are you being threatened by a lawsuit for unpaid bills?
- Do you have medical bills that you will never be able to pay?
- Are you facing an eviction or a foreclosure on your residence?
- Facing a repossession or in fear of losing your vehicle?
- Do you have a wage garnishment against you?
- Are you not able to make more than the minimum payments on your credit cards?
- Have your utilities been shut off recently?
Brookstone Files For Chapter 11 Bankruptcy
Mc Carren Airport Stores to Stay Open
An increase of online purchasing and a decline of foot traffic in shopping malls and stores has caused some companies to go bankrupt. Recently, these “brick and mortar” retailers include RadioShack and Toys ‘R’ Us. Now, another popular gift store, Brookstone, famous for personal massagers, tech gadgets, and travel accessories is filing Chapter 11 bankruptcy. Brookstone plans on reorganizing their debt through Chapter 11 and close all stores. Other well-known retailers located in malls who have also filed for bankruptcy, due to the lack of mall traffic, include Rue 21, Wet Seal, and The Limited. Plus, the Brookstone company intends to maintain their brand and sell its products, just not at a store in a mall.
Additionally, chapter 11 bankruptcy includes a plan to repay creditors over time, still allowing the business to continue to operate. Brookstone will maintain their online and wholesale business. One of the top-sellers online at Brookstone are the Shiatsu Foot Massager with heat. Also,bluetooth headphones, and luggage with charging ports. The gift and gadget chain store will also keep open 35 stores that are located in airports. Brookstone sell popular items to travelers such as neck pillows, luggage, and travel gear.
Brookstone in Pop Culture
It is a little known fact that the Brookstone brand name can be seen in the movie Jurassic World. In some shots of the movie, you can see the Brookstone signage. Maybe you have seen the episode of The Office where Dwight makes mention of Brookstone when looking for a specific gadget? Brookstone used to be wildly popular but as the malls lost popularity, so did the Brookstone following. The once well known, well visited store started to see a decline. Unfortunately, the placement of their brand in the movie Jurassic World movie or mention in a pop culture sit-com, did not boost sales enough to dodge bankruptcy.
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