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Justin M. Myers, Attorney-at-Law, LLC


Monday, January 27, 2014

How Bankruptcy Law Helped Resurrect the Twinkie

One of the biggest stories of 2013 is the return of Twinkies on American grocery shelves. This story brought happiness to countless fans who were trying recover from the ‘emotional turmoil’ Hostess Brands, Inc. bestowed upon them when the company filed for bankruptcy. Under the protection of Chapter 11, the company was able to work out deals that led to its current, more stable situation. The return of the favored sweet showcased the power of bankruptcy laws.
Like Hostess Brands, Inc., anyone, from the neighborhood plumber to big consumer corporations such as Hostess Brands, is entitled to the protection that bankruptcy laws provide. Qualified bankruptcy lawyers not only help clients with the legal proceedings involved in bankruptcy filing, but also with formulating effective restructuring plans to convince the courts of the filer's ability to rebuild their finances and to pay off debts that can't be waived.
Chapter 11 bankruptcy is a type of bankruptcy covering businesses, and in rare cases, individuals with very large debts. Individuals with smaller debts can choose to file a Chapter 7, Chapter 12, or a Chapter 13 type of bankruptcy.
Under a Chapter 7 bankruptcy, individuals may get a write-off for most of their debts while getting a chance to keep most of their assets. The Chapter 13 type of bankruptcy is better suited to those earning a good, regular income, but needing more time to pay off their debts; while Chapter 12 bankruptcy was designed for fishermen and farmers.

Competent bankruptcy lawyers can help clients identify the kind of bankruptcy most appropriate for their situation.

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