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Sears may file for Chapter 7 bankruptcy

Chapter 7 bankruptcy can offer a struggling business some excellent options for settling untenable debt. Sears department stores have been circling some form of bankruptcy for a while, but many industry insiders believed that the company would file under Chapter 11. If the company moves forward with Chapter 7, shareholders could be left with no consolation prize.

For a larger business such as Sears, which is publicly traded, filing for Chapter 7 allows a trustee to liquidate assets and sell them off to repay creditors, although shareholders are unlikely to see any of liquidation. Chapter 7, unlike other forms of bankruptcy, does not aim to restructure a business, but rather liquidates its assets and attempts to prioritize the recipients of the liquidation.

While few individuals or business actively look forward to a bankruptcy procedure, the process can offer much needed relief and bring legal closure when things have gotten far out of hand. If you believe that a Chapter 7 liquidation process may be the best option to resolve your debts, do not hesitate to seek the guidance of an experienced attorney who can help you fully understand the process as it relates to your needs.

With proper legal guidance, you may be able to truly make the most of the law and find relief in a Chapter 7 bankruptcy, or some other form of bankruptcy. However, the process is exceptionally complex, and should not be attempted without qualified help. An experienced attorney can assist you in understanding the specifics of your own situation and how a bankruptcy may offer you protection and relief, while keeping your rights secure.

Source: Seeking Alpha, "Sears Holdings Could End Up In Ch.7 Bankruptcy, Not Ch.11," April 06, 2017

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