Competition, Rising Food Costs Send Quiznos Sandwich Chain into Restructuring

On March 14, 2014, the sandwich chain that pioneered toasted submarine sandwiches filed for protection under the bankruptcy code.  As opposed to the drawn out bankruptcy proceedings we have become so accustomed to, Quiznos is headed for a relatively quicker process in light of the “prepackaged” nature of its restructuring. Prepackaged Restructuring Plans? Companies will…


Detroit Files Plan in Bankruptcy, 6th Circuit Will Hear Appeals

In December 2013, we reported that a Detroit bankruptcy judge confirmed the city of Detroit was eligible for bankruptcy protection.  On Friday morning, the city filed for court approval a proposed plan alleging to deal with the city’s $18 billion debt burden.  As anticipated, the plan does include 10-30% cuts to pensions and bonds–unsecured bonds…


Who Has Filed Bankruptcy? It May Surprise You.

Individuals of all social and economic groups can experience financial troubles, including politicians, business leaders, celebrities, athletes, and other public figures.  Here is a list of some recognized individuals who have used the protections of bankruptcy to obtain relief during times of financial distress: 1.             Abraham Lincoln                …


Stockton Voters to Decide the Fate of city’s bankruptcy exit plan

We previously posted a story about Stockton’s plan to exit bankruptcy. That plan hinges on Stockton residents’ approval of a tax measure that would increase Stockton’s sales tax to 9 percent from the current 8.25 percent. Reuters reports that residents will be hitting the polls Today, November 5, 2013– city officials are optimistic that the…


Stockton, California Solidifies Its Bankruptcy Exit Plan

The struggling city of Stockton has made headway into its climb out of financial despair.  The city council has agreed to move forward with a plan that allows Stockton to adjust its outstanding debts while striking deals with its largest creditors–a number of bond insurers.  These very bond insurers were the strongest voice in opposition…


Five Common Debts That Can Be Discharged in Bankruptcy

1. Credit Card Debts Credit card debt is one of the most common types of debt carried by Americans today, and it is often a primary reason for filing bankruptcy. Absent fraud, credit card debt can generally be discharged (i.e. eliminated) in bankruptcy. 2. Medical Bills Medical bills are another primary reason for filing bankruptcy…


Residents and Retired City Workers Make a Plea to the U.S. Bankruptcy Court to Block Detroit’s Bid for Bankruptcy Protection

Bankruptcy is not instituted solely for individuals and businesses.  As Northern Californians know too well, there are circumstances in which cities may also file for bankruptcy.  In July 2013, Detroit filed its petition for bankruptcy—the largest municipal bankruptcy in U.S. history. When a city files for bankruptcy, the adverse effects on its citizens are sometimes…