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Lexington Bankruptcy Blog

Furniture business files for Chapter 7 bankruptcy

A furniture business best-known for its iconic 20-foot artistic chair installation is closing its doors after many years in operation. Owners of LaFlamme's had previously filed for Chapter 11 bankruptcy protection, but has since upgraded its filing to Chapter 7 liquidation. Kentucky small business owners can likely empathize with the bittersweet nature of closing a cherished business while simultaneously recovering financial ground in preparation for the next attempt. 

The furniture store has been in operation for some 50 years, during which time local residents patronized the establishment characterized by a large chair display that drew sightseers to its location. However, business has been troublesome for the organization for some time, culminating in a particularly brutal sales report for the first part of January. Management cites poor weather and a lack of foot traffic to the downturn in business, which had already been suffering prior. 

Explaining Chapter 7 bankruptcy

There is a great deal of stigma and misinformation that surrounds the practice of filing for bankruptcy. However, for some Kentucky residents facing insurmountable debt, Chapter 7 bankruptcy in particular can be extremely useful in handling this debt problem. It is important for residents to have a full understanding of what Chapter 7 entails before seeking out the necessary legal support to begin this process, however. 

Chapter 7 bankruptcy is easily the most common form of bankruptcy used by individuals and businesses in America. In essence, the debtor asks the bankruptcy court to discharge some or all outstanding unsecured debts -- this includes credit card debt, but may not include other types of debt such as student loans. In some cases, assets may be liquidated in order to free up capital to help pay down creditors, but quite often, those who file for Chapter 7 do not lose assets. This is because many assets are exempted from qualification for liquidation under bankruptcy law. 

Chapter 7 a viable way to handle outstanding holiday debt

For many Americans, the holiday season is an opportunity to spend time with friends and family, and to exchange gifts in the spirit of the season. However, as some Kentucky residents are keenly aware, overspending and going into debt for the sake of the gift-giving tradition is all too common. For those who were already in debt, this can add to a persistent problem. Thankfully, there are many strategies and tools available for Americans finding themselves in the red, from debt consolidation to Chapter 7 bankruptcy. 

Overspending over the holidays is often exacerbated by the glut of sales that continue throughout the rest of the year. While it may seem like a good time to take advantage of reduced prices, for households already in debt this can worsen an existing problem. Many people express remorse over the amount they spend in these critical months, and while some of these individuals may seek debt counseling during this time, often these services are not available until the new year. 

Former top company files for Chapter 7 bankruptcy

A company that saw its shares drop down to fractions of a penny has closed its doors for the last time, according to local business news. Kentucky residents who follow business trends may be familiar with CD International Enterprises, which filed for Chapter 7 bankruptcy in December 2017. So far, no public comment has been made by the company, but the bankruptcy should be well underway as of this report. 

According to the company's records, the Plantation-based CD International was on Business Journal's Top 50 public companies list in 2013, coming in at no. 45 on the list with estimated revenue of some $114 million. However, by 2016, things had taken a turn for the worse for CD, which listed only $82,614 in revenue for that year. By 2017, no revenue whatsoever was being generated. 

Learning to live after filing bankruptcy

Many people rely on credit cards and other lines of credit to cover regular life expenses. When the bills from these credit accounts become overwhelming, there comes a point when you might realize that you need to do something. One answer to this is filing bankruptcy.

Sometimes, filing for bankruptcy is seen as a failure. This isn't how you should view this option. When you have debts that are drowning you, bankruptcy might be the most responsible choice you can make. Making the decision to file for bankruptcy brings up the question about what you are going to do about living life after you file.

Data company files for Chapter 7

A prolonged legal battle with a competitor has led to a prominent data company closing its doors, according to business news local to the company. Kentucky IT and real estate professionals may be aware of Xceligent, a commercial real estate data company based in a neighboring state. Founded in 1999, the company has now filed for Chapter 7 bankruptcy after a sustained court battle with another company. 

According to the report, competitor CoStar sued Xceligent back in Dec. 2016 for allegedly attempting to steal and use data and photos that CoStar owned. Xceligent's legal representation called the allegations without merit, but the result was an extended series of legal confrontations between the two companies. Xceligent countersued in July 2017, claiming CoStar was responsible for attempting to form a monopoly. 

Determining the efficacy of Chapter 7 bankruptcy

For elderly people, financial stability is perhaps even more important than it has ever been. Kentucky residents of retirement age know that looking after debts is of paramount importance, especially considering the litany of ailments that can influence a senior citizen's ability to make sound decisions for himself or herself. For those facing insurmountable debt, the support of financial experts can help to determine the right course to financial stability, be it consolidation, Chapter 7 bankruptcy or some other tactic. 

Financial advisors to the elderly often suggest retaining the help of younger, trusted family members in determining how to handle debt. If one or both parties in a couple are beginning to struggle with dementia or other ailments, the help of younger eyes can be invaluable. They can also help to offer further resources, particularly those found online, to seniors who may not be familiar with the technology. 

Chapter 7 bankruptcy can help curb credit card debt

U.S. residents struggle with some of the highest per-household debt rates in the world. Unsecured debt like credit card debt can swamp a Kentucky family, leaving the household to struggle under the weight of high interest rates. It may be helpful, in the face of rising credit card use, to consider options for debt relief, from consolidation to Chapter 7 bankruptcy. 

In the last 10 years, the market has seen unprecedented growth. U.S. households now account for some $1 trillion in unsecured credit card debt. Over 171 million people around the country have access to credit -- sometimes more than they can handle. Lenders are offering higher limits on credit cards and lower rates as incentive to use more credit. 

Use all available means to get out of debt

When you get into a serious financial jam, it can be difficult to extricate yourself from a mountain of crushing debt. But before you resign yourself to a life of living paycheck to paycheck and dodging creditors, rethink your relationship with money and credit.

Live within your means

Determining the value of Chapter 7 bankruptcy

In modern American life, debt is an unavoidable reality. Many Kentucky households carry an average of thousands of dollars in different types of debt, most specifically credit card debt that can quickly become challenging if not impossible to surmount. Thankfully, there are a variety of options available to manage that debt, including Chapter 7 bankruptcy. However, it is important for an individual or family considering this kind of debt relief to understand what it entails. 

In general, Chapter 7 bankruptcy (also called "liquidation bankruptcy") involves eliminating unsecured liabilities like credit card debt, medical bills and personal loans. There are several ways this can take place, but in all cases, a bankruptcy trustee is assigned to supervise the bankruptcy process. This kind of bankruptcy is generally used by individuals who have insufficient disposable income -- or an insufficient rate of pay -- to pay down existing debt. A means test is employed to determine eligibility for Chapter 7.