There is no question that the protection that filing for bankruptcy provides comes with some sort of price. This might be off-putting for some individuals who think their circumstances are so dire that the debt relief they seek is beyond their reach.
But jumping to such a conclusion would be a mistake. Before any decisions are made, it’s always best to consult an attorney. Every case is different, but it could turn out that however much relief is realized through discharge of debt through Chapter 7 or Chapter 13 bankruptcy may more than cover legal fees.
The key is to stay focused on the objective of recovering financial solid ground and dispassionately examining all options to find the best one. By knowing what the desired outcome will look like, it becomes easier to put the cost of bankruptcy into perspective.
We offer this observation in the light of the recent news about how Allens Inc. is working its way through Chapter 11 bankruptcy.
In one recent article in Arkansas Business, it was noted that the Siloam Springs food processing company has spent millions of dollars on its effort already, and expects to spend millions more before it’s through. The restructuring effort has been underway since 2011 and apparently includes the possible selling off of some properties in the future.
But as a news release from the company states, the objective behind all the activity is to reorganize so that it can deal with its debt, focus on its core businesses, and be “a stronger, more competitive business” going forward.
With confidence that those ends will be achieved, the cost has clearly been deemed worthwhile.
Source: ArkansasBusiness.com, “Allens Inc. Prepares to Sell Properties as Bankruptcy Fees Stack Up,” Nov. 11, 2013