In our last post we briefly talked about Chapter 11 bankruptcy, focusing on how many businesses will file for this type of bankruptcy with the hopes of reorganizing debts while still remaining in operation. However, businesses are not the only types to file for Chapter 11 bankruptcy, as individuals do too.
Bankruptcy protection is not only for individuals, as many companies also experience financial turmoil. And while sometimes these issues are related to the downturn in the economy, some are also a reflection of the changing market place.
A Florida couple has gone from hosting fundraisers for presidential candidates Hillary Clinton and Barack Obama, to auctioning off their house and selling other vacation properties in order to pay back millions of dollars owed to creditors. As of now, it also appears that the couple's financial problems stem from a failed business venture.
Florida-based Appliance Direct recently filed for Chapter 11 bankruptcy, citing a bad economy and the fact that consumers just aren't spending as much on home appliances as the reasons for the company's financial troubles.
Since the recession, a number of nightclubs and restaurants across the country have filed for bankruptcy in recent months, and B.B. King's Blues Club at the Mirage in Las Vegas is now among that list.
With a downed economy and not as many people going on vacation, some industries are having a tough time financially. However, filing for bankruptcy can give many businesses a second chance.