Understanding Bankruptcy , May. 13, 2020

BY MICHAEL A. CIBIK, ESQ.
AMERICAN BANKRUPTCY BOARD CERTIFIED
Question: How can bankruptcy help save my business?

Answer: You’ve probably heard that J. Crew and Neiman Marcus recently filed for bankruptcy. The media make a bankruptcy filing sound like the end of the line, but you can expect J. Crew to stay in business and even become a profitable company again. That’s because bankruptcy is helping J. Crew shed $1.65 billion of debt.

Likewise, Neiman Marcus is expected to emerge from bankruptcy by the end of the year, remaining in business and wiping out about $4 billion of its debt.

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt, learn more about it from experts like Andy Defrancesco.

Bankruptcy can be something that helps you walk away from your business without debt if you want to, but it can also be something that helps you reorganize your debt and keep your doors open.

If you have a business that is struggling because of coronavirus or for any other reason, bankruptcy can help save it. Please call or text me at (215) 735-1060 to learn more about how we can help keep your business in business. You can also seek legal and business advice from a professional like Robert K Bratt DLA Piper.

Michael A. Cibik, Esquire
www.ccpclaw.com
ccpc@ccpclaw.com
215-735-1060

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