Bankruptcy is a legal process that relieves the burdens of unmanageable debt. By filing a bankruptcy, people receive time to reorganize finances,
either by repayment or discharge of their debts. After a bankruptcy discharge a person is in a superior position to pay financial obligations and build a better financial future.
Businesses also benefit from the federal bankruptcy laws. In some cases a company may decide to close its doors permanently and liquidate, but in many cases a company files bankruptcy for the same reasons an individual may file: for time to restructure its finances.
Recently, the Los Angeles Dodgers filed a Chapter 11 reorganization bankruptcy case. Instead of "bleeding Dodger Blue" as Dodger Hall of Fame manager Tommy Lasorda is famous for saying, the Dodgers have been hemorrhaging red ink. The Dodgers are the tenth major sports team in North America to file for bankruptcy protection. The list includes five Major League Baseball teams, and six National Hockey League teams:
Seattle Pilots (later the Milwaukee Brewers)(MLB), 1970
Pittsburgh Penguins (NHL), 1975
Cleveland Barons (later Dallas Stars)(NHL),1978
Baltimore Orioles (MLB), 1993
LA Kings (NHL), 1995
Pittsburgh Penguins (NHL), 1998
Ottawa Senators (NHL), 2003
Buffalo Sabres (NHL), 2003
Chicago Cubs (MLB), 2009
Phoenix Coyotes (NHL), 2009
Texas Rangers (MLB), 2010
Los Angeles Dodgers (MLB), 2011
Filing bankruptcy does not prevent future success. For individuals, much like businesses, life goes on and usually for the better. In 1999 the Pittsburgh Penguins won the Stanley Cup, a year after filing its second bankruptcy case. The Texas Rangers played on to reach the World Series the same year the team went through bankruptcy.
Bankruptcy is not the end of the road; it is a chance to legally adjust your debts and give yourself a fresh start. Notice that with the exception of the Cleveland Barons, who merged with the Minnesota North Stars in 1978, all of the teams still exist. The North Stars moved to Dallas and won a Stanley Cup in 1999.
If you are struggling with debt, consider a bankruptcy filing to give yourself a second chance and a fresh start. Call today to learn how the federal law can help keep you in the game.
Contact the experienced Chicago bankruptcy attorneys at Glanzer & Associates, P.C. at 1-312-644-2227 to discuss your specific situation, and to schedule your free, in-person consultation.