The tough economy that has plagued recent years has led many in New Jersey to decide that bankruptcy is the best choice to recover financially. One of the most preferred forms of filing is Chapter 13. As consumers consider filing for bankruptcy, some hesitate due to the potential reduction in their credit rating that will occur once the bankruptcy is complete. However, at least one authority notes that the damage to a credit rating may be short lived in some instances.
People in New Jersey from all different walks of life know that sometimes a financial situation can degrade to the point that seeking bankruptcy protection is one of the few good choices left for an individual. This was the case recently for one coach of a major college football team. The coach sought Chapter 7 bankruptcy protection after investments in real estate failed due to the slow economy and depressed real estate market.
Readers in New Jersey may be aware that one of our nation's largest airlines took a step closer to being able to exit bankruptcy recently. American Airlines' parent company AMR Corp. filed for commercial bankruptcy protection, Chapter 11, last November. At that time, the company reported that it had lost more than $10 billion since 2001.
Many in New Jersey may be aware that when a company experiences a financial difficulty, employees can become concerned about the long-term effects on their employment and benefits. When the fiscal problems reach a point where the company faces a commercial bankruptcy, those employee concerns can seem justified. This may be why some of the employees of a large airplane manufacturer recently voted to make changes to their previously negotiated pension plan.