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Sears may emerge from bankruptcy with locations still open

If you own a business and are struggling to make ends meet, you may be considering bankruptcy. Bankruptcy is not always an easy decision to come to, but with the right type, it may be possible to keep your business open and to become profitable in the future.

With business, there are two primary forms of bankruptcy, Chapter 11 and Chapter 7. One business that has been struggling with bankruptcy is Sears. Sears will be emerging from bankruptcy, because it won initial judicial approval to pay creditors just three cents for every dollar Sears had owed.

The company will remain under the control of Edward Lampert, and the retailer could see an additional 100 store closures. Presently, there are still around 400 Sears and Kmart locations around the United States.

Under the terms of the bankruptcy's proposed order, the company will set aside an additional $25 million as a reserve for ongoing litigation and another $20 million to cover payments to the U.S. trustee and to cover operating expenses. This allocation will also pay the attorneys who supported both Sears Holdings and its creditors.

This case is a good example of how working through bankruptcy with a trustee and the judge can help you emerge from bankruptcy without having to close all your locations. Sears seems to have managed to retain several of its stores, which means more people can keep their jobs and the impact of the bankruptcy can be minimized.

If your business is struggling, you may not need to liquidate. Your attorney can talk to you more about how to get back into control and to create a plan to make your business stronger through bankruptcy.

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