Knowing when to file for bankruptcy is a financial decision that can make or break the bank. You may feel like you’re sinking and just floating with your head above the water. Behm Law Group, Ltd. can give you the insight you need to know if your financial situation might necessitate filing for bankruptcy.
The right time to file for bankruptcy is when you realize you’re in a financial slump that you may not be able to get out of for years to come. If your debts surpass your income, if you use your credit cards to pay for necessities like groceries, gas, and utility bills, or if you only make the minimum payments on most or all of your credit cards, you may have to consider declaring bankruptcy.
Here are a few examples of companies that faced similar questions about whether to file for bankruptcy or not.
GM and Chrysler
The famous government bailout of the automotive industry kept them from filing for bankruptcy in 2009. The bailout was part of a plan to prevent the Midwest from going into a depression. The bailout kept an estimated 2.6 million jobs alive in 2009 and 1.5 million jobs in 2010, which also kept unemployment rates lower than they would have been.
The company was still just floating above water when its financers were ready to drop American Apparel. The company went into a debt-for-equity conversion and escaped filing Chapter 11 bankruptcy. Lenders have taken $230 million in debt in exchange for ownership of the company.
The famous powerhouse company nearly went bankrupt in 1997 before its co-founder, Steve Jobs, stepped back in to save the company and came out with “cool” products like the iPod, iPhone, and iPad. Apple is now the most profitable company in history.
Kentucky Fried Chicken (KFC)
Kentucky Fried Chicken hasn’t gone bankrupt, but it is lagging behind against its competitor, Popeye’s. The company hasn’t introduced a new successful menu in quite some time and its southern fried chicken competition is blowing it away. In 2012, twenty-eight KFC franchises were bought out by Popeye’s in the St. Paul-Minneapolis area.
Many times a company or an individual may have to come to terms with the fact that filing for bankruptcy is the only way to relieve themselves of financial distress. Knowing your financial situation well and determining whether you should file for bankruptcy in Redwood Falls, MN is a dilemma that Behm Law Group, Ltd. can give insight on.
If you do decide to file for bankruptcy, the professionals at Behm Law Group can help you through the daunting process. Contact us today!