May 12, 2020 | Bankruptcy, Business law, Chapter 13, Chapter 7, General

Neiman Marcus became the third major American brand in the last two weeks to file for bankruptcy. The luxury retail chain follows two other former giants in their respective fields – J. Crew and Gold’s Gym. Brands like Pier 1, Aldo, and Lucky’s have also filed for Chapter 11 bankruptcy protection in 2020, not even six months in the year.

At the same time, other major retailers like J.C. Penney’s, Bed, Bath & Beyond, and Ascena (which owns Loft, Anny Taylor, Justice, Lane Bryant, and more) are all reported to be exploring bankruptcy options as COVID-19 has forced them and businesses of all sizes to close their doors to the public, watch their revenue plummet, and see their debt mount.

The decision to file bankruptcy is typically not made in a single moment. People and businesses alike almost always see the train barreling down the tracks well before disaster strikes. For example, Neiman Marcus negotiated a deal with its creditors in 2019 to avoid bankruptcy – only to have the worst pandemic in a century leave them no choice but to pull the trigger. They did what they could to keep the collectors at bay, but in the end they needed the relief that only bankruptcy can afford: protection from lawsuits, prevention from asset seizure, and valuable time to make decisions that could impact their financial future. Major businesses are doing this.

Consumers should also be making these same assessments when determining their best path forward. For many, their livelihood is at stake now more than ever and filing either Chapter 7 or Chapter 13 bankruptcy relief might be the best option for them.

Omaha Bankruptcy Lawyer 

If you are considering bankruptcy due to the impact of COVID-19 – or for any reason – the Omaha bankruptcy attorney at High & Younes can help you understand your options, including the recent changes in federal legislation. We are still taking new clients and are happy to speak to you over the phone or video call. Talk to an experienced bankruptcy attorney by calling 402-933-3345 today.

What Can I Do to Bring Myself Financial Relief? 

If you have had a negative financial incident in the past 18 months – reduced wages, lost employment, a divorce, a loan default, and unexpected and unaffordable medical expense, a sharp increase in credit usage – here is a simple step-by-step guide to start the process of getting out of the hole.

Step 1: Do Your Research.  Educate yourself on your financial situation. Many people don’t have a full understanding of their debt, household income, and assets. Gather your bills and prepare a list of creditors.  Review your pay stubs and bank statements. What is your weekly, bi-weekly, or monthly take-home income? Any expected changes to that number? Does your income cover your rent or mortgage, utilities, insurance, gas, groceries, and loan payments? Is there anything left over at the end of the month to pay down debt faster?  Or, is there a shortfall?  Is there any way to decrease your expenses?

If you talk to an Omaha bankruptcy attorney this is a major part of the financial analysis you can expect to discuss.

Step 2: Find the Right Documentation. Gather the following documents:

•     The last two years of tax returns.
•     Documentation of your income.  This includes pay stubs for the last seven (7) months, child support payment history, pension statements, social security statements, rental income and all other sources of income.
•     Bank statements for the past seven (7) months.  Review your statements and identify your expenses and sources of all deposits.
•     Most recent bills and statements.

When consulting with a bankruptcy attorney these are the documents that will help the attorney provide you feedback about the options available to you.

Step 3: Prepare for full disclosure.  First, be honest with yourself.  Bankruptcy is not for everyone – but if you do not have a plan to get over the hump, out of the hole, or steady the ship (insert your favorite cliché here) then it is wise to seek legal counsel. Consultation with an experienced bankruptcy attorney is no-cost and no-obligation. We provide a free evaluation for potential clients so you can weigh your options and decide how to proceed.

Remember, the information you provide may impact the advice you receive. Therefore, a complete and transparent review of your situation will only help your attorney properly advise you.

As Kenny Rogers famously sang, “You’ve got to know when to hold ‘em, Know when to fold ‘em, Know when to walk away…” His words ring true here.

Businesses across the country are making these assessments right now in the wake of coronavirus.  Every American household should be doing the same. It’s not an easy decision to seek bankruptcy protection, but it may be the wisest move for your business, your family, and your future. We can help you get started.

Get Help Today

Have a question about Chapter 11, Chapter 7, or Chapter 13 bankruptcy – or any legal matter? Call the Omaha law firm of High & Younes today. Our team is ready to help you take back control and give you some relief. Call 402-933-3341 today.