No individual or business is immune to financial struggles and problem debt. Recent news about Remington Outdoor Company, the famous gun maker founded in 1816, filing for bankruptcy illustrates the point.
Why does a 200-year-old company decide to address its debt problem in bankruptcy court? Because federal bankruptcy law provides powerful relief for all kinds of filers who qualify for protection. That includes modest, hardworking citizens who have experienced setbacks, and it includes large corporations that have suffered from declining revenues, brand denigration or problematic acquisitions.
Filing for Chapter 11
Remington, which is the largest American maker of shotguns and rifles, filed for Chapter 11 bankruptcy protection in late March, according to Reuters. Reportedly, the company was able to secure a $75 million loan to keep operating while setting out to deal with hundreds of millions of dollars in debt.
Since its humble beginnings in upstate New York more than two centuries ago, Remington has gone through numerous ownership changes and many up-and-down cycles as wars came and went, military needs evolved and generations of civilians purchased firearms and ammunition. In recent years, the company has struggled; Chapter 11 will allow it to survive, for now.
Could bankruptcy be good for you?
As we all know, individuals and families go through financial ups and downs, too. In your case, it might be a medical problem in the family, a job loss, a business failure, a divorce or another life-altering challenge.
Bankruptcy is not for everyone; there are pros and cons that must be weighed. If you are struggling with debt and considering your options for relief, Chapter 13 or Chapter 7 could help you reach your goals. Get legal advice to see if you qualify.