It's a humbling and stressful situation for many, but due to the recession and the economic downturn, many once considered wealthy are now the same people who are relying on government assistance and struggling to find work.
Citing a drop in sales and rising prices in the industry, an ice cream company that was in business for close to 80 years shut its doors and filed for a liquidation bankruptcy. The business had originally stopped all operations on June 30, but then filed for Chapter 7 bankruptcy on Monday.
Quite often we report on businesses that have either completely liquidated, or those that have filed for a reorganization bankruptcy. And while a good number of those bankruptcies reflect the hard economic environment many business owners are now faced with, this same environment also tends to impact those workers employed by bankrupt businesses who find themselves in debt after being laid off.
The Florida-based hearing aid retailer HearUSA filed for a reorganizational bankruptcy last week. Under this Chapter 11 bankruptcy the company will sell its assets for $80 million to the international hearing-care company William Demant Holdings, and 163 employees will be laid off. If all goes as planned, the sale with Demant will happen in just a few months.
The commissioner of Hall County, Florida recently filed for bankruptcy along with his wife. He announced that he is currently working on a plan for repaying his debts.
While Florida in general saw an increase in the number of bankruptcy filings for 2010, one area recorded one of the highest increases throughout the entire nation.