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Bankruptcy May Be Your Option

Tulsa Bankruptcy Law Blog

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.

Spiech Farms LLC seeks Chapter 11 bankruptcy

There are a variety of different financial hardships that any business in Oklahoma and across the country can face. However, some hardships specifically target certain businesses. For example, difficult or unexpected weather could hit a farm or other agrarian-based business especially hard. Regardless of the hardship, some businesses choose Chapter 11 bankruptcy to help them manage the debt incurred.

In fact, a farm headquartered in another state has recently sought such help. Spiech Farms LLC claims that, although it experienced $15.8 million in gross sales in 2016, it experienced an unfortunate decline of $4 million in 2017. The decline seems to be due -- at least in part -- to weather conditions.

Bike company seeks bankruptcy protection

Businesses in Oklahoma and other areas of the country typically set certain goals that they would like to meet. In order to meet many of these goals, these businesses need to invest in research and development. Unfortunately, debt can prevent them from making this investment. A company in another state is hopeful that its decision to file for bankruptcy will allow it to focus on the future.

The company, Niner Inc., manufactures bicycles. It was founded in 2004 by two men, one of which has since left the company. In late November, the company announced that an investment company would be purchasing it. However, the company filed for Chapter 11 bankruptcy soon after.

Cumulus Media seeks Chapter 11 reorganization

Regardless of the size of a business, it can struggle for a variety of different reasons. Often, overwhelming debt pushes businesses in Oklahoma and across the country to contemplate difficult decisions. In fact, Cumulus Media Inc. has recently made the decision to file for Chapter 11 bankruptcy protection.

The media giant reportedly owns 446 radio stations, which it operates in 90 markets. Reports indicate that it currently holds $2.4 billion in debt. Cumulus has recently announced that it has come to an agreement with its major creditors that will allow it to reduce its debt by over $1 billion. The company does not anticipate any disruptions to its regular sales, programming and operations as a result of the bankruptcy filing; Cumulus reported revenue of $287 million in the last quarter, an amount that remained relatively flat.

More older people seeking bankruptcy protection

Often, people in Oklahoma spend a great deal of time planning for their future. Regardless of their financial planning, some still find themselves facing unexpected hardships later in life. In order to manage these hardships, they often turn to bankruptcy protection in order to stop the harassment from debt collectors.

One 80-year-old woman describes her struggle with debt. Despite being independent for the majority of her life, the medical bills following her open heart surgery were more than she could handle. Ultimately, she made the decision to seek bankruptcy protection.

Rising debt could indicate need for debt relief

There are many necessities in life. For example, for people in Oklahoma to be able to meet the needs of their families, they must be able to work. To work, they may need a car in order to drive back and forth. Often, this causes people to seek out loans, which may ultimately create the need for debt relief. Recent reports indicate that the amount of debt that the average household in the United States holds has increased in the third quarter of 2017.

The total debt has increased over $116 billion. This leaves total debt at approximately $13 trillion -- an increase of about one1 percent. Both debt related to credit cards and automobile loans has risen.

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