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Massachusetts' Building #19 files for bankruptcy

Small businesses are a large part of the Massachusetts economy. They help to provide a valuable service to the local economy because they employ many people in the community. Unfortunately, some small businesses can fail. The debts of the business can merge into the personal debts of the business owner; small business owners may be personally liable for debts incurred from their businesses. The difficulties of emerging from a small business closure can be onerous and difficult for those unprepared for the financial repercussions. One of the options for recovering from high levels of debt may be a reorganization plan under Chapter 13 bankruptcy. When they close, businesses have options to choose from as to how to reorganize or liquidate and manage the resulting debt.

A local Massachusetts retail store, Building #19, reportedly filed for bankruptcy in early November. The discount store chain, based out of Hingham, had 10 stores in Rhode Island, Massachusetts and New Hampshire. The company was founded in 1964. It cited declines in sales due to online competition as the main reason for filing for bankruptcy. It started out as a small business and slowly grew over the years selling items from lawn mowers to furniture.

Under Building #19's form of bankruptcy, the business assets are liquidated and sold to pay creditors. For those owners not looking to liquidate their businesses, one option for being able to reduce interest payments is Chapter 13 bankruptcy. This involves the consolidation of debts into a repayment plan. Often this process can help save one's credit rating by restructuring the debt into manageable payments to be made over time. This option can help you organize debt relief from business ventures, student loans and medical bills.

Filing for Chapter 13 bankruptcy can be an option for those with a variety of debt who still want to preserve their credit rating. The process of qualifying for Chapter 13 can be a challenge for those not familiar with state and federal bankruptcy laws. An affordable payment plan for business owners can help them manage their finances to get themselves and their families on track.

Source: The (Quincy, Mass.) Patriot Ledger, "Mass. discount dealer retailer files for bankruptcy," Nov. 4, 2013

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