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Bankruptcy May Be Your Option

Tulsa Bankruptcy Law Blog

Oklahoma Catholic university seeks Chapter 7 bankruptcy

All employers require funds in order to operate. Employees must be paid in addition to the costs associated with operating a building, including utilities and purchasing necessary supplies. If there are not enough funds, employers must make difficult decisions regarding the future of the business or organization. Unfortunately, a university in Oklahoma has made the decision to close its doors and file for Chapter 7 bankruptcy protection.

The decision to close was announced in November with representatives for St. Gregory's University saying the decision was necessary because it did not have the necessary funds to operate. As a result, 550 students and 110 members of the faculty had to make alternative arrangements. The closure came after the school was denied a $12.5 million loan it applied for from the U.S. Department of Agriculture.

The ins and outs of Chapter 13 bankruptcy

When finances get thrown off track, it's good to know such problems are usually temporary. In fact, there are typically several resources available to help people restore financial stability, including but not limited to various types of bankruptcy. If an Oklahoma resident facing financial crises has steady income coming in and hopes to retain ownership of his or her assets while paying back debt, Chapter 13 bankruptcy might be a viable means for doing so.

Chapter 13 differs from Chapter 7 in several ways. A distinct difference is that the latter typically requires liquidation of nonexempt assets. The former, on the other hand, is more of a reorganization of debts that allows the filer to propose a repayment plan, which the court must approve before it becomes effective.

Company based in Oklahoma seeks Chapter 11 bankruptcy

Decision makers at companies in Oklahoma often work hard to make decisions that are in the companies' best interests and will help lead to continued success in the future. Often, these decisions are difficult to make. For example, a company based in Oklahoma has recently made the decision to seek Chapter 11 bankruptcy protection.

The company, Ascent Resources Marcellus Holdings LLC, along with its subsidiaries, filed papers in early February. Filings indicate that the company has between $1 billion and $10 billion in debt, spread across 200 to 999 creditors. Additionally, the company claims that it has assets in the range of $500 million and $1 billion.

Paths to debt relief in Oklahoma

There are people in Oklahoma who are currently struggling with debt. Despite past misconceptions about how debt is acquired, there are some who are in their situation due to circumstances beyond their control, such as medical bills due to an unexpected illness or a lost job. Regardless of the cause, many need debt relief.

For some people -- and businesses -- this includes seeking help through the bankruptcy process; in fact, 844,495 such cases were filed in 2015. Of those cases, the large majority were Chapter 7. Through Chapter 7, a petitioner is released from the responsibility of paying his or her debt. While certain property -- potentially including pensions, equipment used for work, and a home -- are exempt from the process, non-exempt property is sold to help repay the debt. Of the Chapter 7 bankruptcy petitions filed in 2016, over 96 percent were successful.

Using bankruptcy to prevent foreclosure in Oklahoma

The average person in Oklahoma has likely experienced some degree of financial difficulty. Unfortunately, a lost job or unexpected illness or injury can leave families scrambling to meet their financial obligations. Adding even more stress is the potential prospect of foreclosure if those struggling with debt are unable to pay their mortgage. However, there are options that could prevent foreclosure.

In some cases, a lender may agree to a deal that will help those struggling to make their mortgage payment, including a loan modification or a short sale. Unfortunately, many are not willing and will initiate the foreclosure process after only a few months of missed payments. The property is then auctioned off, and the proceeds are used to pay the mortgage and legal costs.

Another retailer seeks Chapter 11 bankruptcy

In recent years, a number of retailers in Oklahoma and across the country have struggled with debt. Many of these struggles are caused by forces that are beyond the control of decision-makers, including weather conditions. In fact, another company, A'Gaci, has recently sought Chapter 11 bankruptcy protection due to overwhelming debt.

The woman's retailer was founded in 1971 and has 78 stores. According to recent filings, the company has $62 million in debt and $82 million in total assets. While the company experienced $4.7 million in earnings in 2016, it ended the year with negative $2.5 million.

Hobbico files for Chapter 11 bankruptcy protection

Those who run businesses must plan for unexpected circumstances. However, often when a company is hit with several challenges or a challenge is more severe than could have been anticipated, it could be left wondering how to deal with the fallout. For many businesses in Oklahoma, the best option is to file for Chapter 11 bankruptcy protection.

A company, Hobbico, that operates in several states has recently opted to take such action. The company was formed in 1985 when Tower Hobbies and Great Planes Model Distributors were combined. Unfortunately, the company has reportedly experienced several challenges over the last few years, making it difficult for them to manage their debt.

Why companies in the black seek Chapter 11 protection

When it comes to ensuring the continued success of a company in Oklahoma, decision makers are often left to make difficult choices. Even companies that seem to be profitable must look to the future. In some cases, this includes filing for Chapter 11 bankruptcy protection.

Some people often wonder why companies that seem to be making money file for bankruptcy. For example, Rue21 recently filed for bankruptcy even though, in 2016, it earned $54 million. However, companies that take such action often do so because they are predicting financial struggles in the future, as they are aware that their current balance sheet is no longer working.

Medical expenses can force retirees to seek bankruptcy protection

Many people in Oklahoma are financially responsible. They ensure that they do not live beyond their means and that they are able to meet their financial responsibilities. Unfortunately, even people who have worked hard all their lives to pay their bills can experience difficulties with debt due to unexpected medical expenses.

The expenses often hit retirees especially hard. When some retire, they often assume that Medicare will cover their health care needs. However, Medicare does not cover the costs of routine dental care, eye care or the costs of certain important devices such as hearing aids. In addition to this lack of coverage, retirees must still pay copays and other costs.

Rebuilding a credit score following bankruptcy

There are many people in Oklahoma who are committed to fulfilling their responsibilities but are struggling with debt. While they are willing to work hard to pay their bills, for example, there are often circumstances beyond their control that can lead to overwhelming debt. In many cases, bankruptcy may be the best option to gain more solid financial standing.

Some reports indicate that more than 500,000 people in the United State seek bankruptcy protection each year. For many of these, the debt struggles stem from medical debt. While there are several options to help manage this debt, some people come to the conclusion that their only option is to seek bankruptcy protection.

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