According to NPR News, the Weinstein Company Holdings LLC is filing for bankruptcy. In the aftermath of disgraced Hollywood mogul Harvey Weinstein’s rapid downfall, the production company, founded by Weinstein and his brother, has not been doing well.

So how does this concern you as an upstanding citizen struggling with debt you simply can’t afford to keep up with? We think it’s important for you to know how powerful bankruptcy protection can be if you qualify for it.

 

 

When things happen

As in Harvey Weinstein’s case, really bad decisions can lead to financial difficulties. But so can life events that are largely outside of our control.

Many Americans find themselves mired in debt after a job loss, an accident or illness, a divorce or another serious life event has messed up their family’s finances. It doesn’t mean that they’re bad or irresponsible.

What type of bankruptcy is right for me? 

In most cases, bigger companies file under Chapter 11, which allows them to restructure their debts while continuing to do business, make payroll and keep the lights on. Chapter 11, especially in cases like Weinstein’s, can be complicated and technical.

Chapter 7 bankruptcy can be a much simpler solution to a less complicated debt problem; it can allow you to discharge unsecured debt from credit cards, medical expenses, loans and more. Chapter 13 can also be used effectively to address debt and save assets you want to hold onto — like your house.

Every debt situation is different. Talk to a professional if you think bankruptcy might be appropriate for you.