In bankruptcy proceedings, "discharge" means to permanently relieve an individual or business of a debt obligation. Each part of the bankruptcy code - Chapter 7, 11, 12 and 13 - handles discharge and debt relief a little differently. However, procedures under all chapters share certain common features.
The famed Mandarin Oriental Boston hotel is headed for the auction block. If a US bankruptcy judge approves the sale, it could bring much needed cash to the hotel's financially strapped owners.
For years, the Massachusetts company known as Karmaloop was the midwife to hundreds of urban clothing startups across the country. Through online marketplaces, it connected the trendiest American apparel companies with eager buyers from around the world. Now, after a series of expansions that perhaps left the company overexposed financially, Karmaloop seeks to reorganize its operations in Chapter 11 bankruptcy proceedings.
Small businesses form the backbone of the Massachusetts economy and inspire many an American dream. However, very few ideas or businesses succeed from day one. Sometimes, debt relief under Chapter 11 bankruptcy is a necessary bridge to greater success.
There are a variety of different options for businesses who are struggling financially. In Boston, a person who owns a business may undergo financial difficulty from a downturn in profits or a seasonal business cycle. If someone is struggling with business debt, there are options available. One of those is Chapter 11 bankruptcy. But, what is Chapter 11 and what can it do for you?
Debt relief for a business can be a critical financial tool for a company that is running into cash flow problems. This can occur when business is slowing down, debt interest payments are high or other problems with liquidity. Chapter 11 bankruptcy in Massachusetts can help with debt relief as a business continues operations and gets back on track. It can help ease relations with creditors and develop a repayment plan that will fit for both sides of the business.
Massachusetts has a history of sports excellence. From the Patriots to the Bruins to the Red Sox, Massachusetts' residents have professional sports teams they can cheer for around the year. Unfortunately, in the realm of professional athletes, there are high rates of debt after they finish their careers. Some Massachusetts citizens can relate to getting mired in a situation where they are surrounded by credit card, medical and other forms of debt. One option for people and businesses wanting a fresh start is to file for Chapter 11 bankruptcy.