Chapter 11 Bankruptcies Com
Bankruptcy and Gift Cards – 4 Reasons Why Retailers Should Honor Gift Cards During Bankruptcy Reorganization
What happens to gift cards when a company files for bankruptcy? The recent bankruptcies of Linens 'n Things, The Sharper Image, and Bombay Company have brought the issue of gift card redemption during bankruptcy to the forefront. With the economic situation expected to worsen in 2008, more retailers are likely to file for bankruptcy, and as expected, consumers with gift cards will be affected.
When you buy a gift card, you become an unsecured creditor to the gift card issuer until you redeem the full value of your gift card (unless it expires or is eaten-up by fees). If the gift card issuer files for Chapter 11 bankruptcy protection, federal law allows the company to stop honoring gift cards. However, the company may petition the bankruptcy court to allow the continued redemption of gift cards.
A company planning to continue in business should make every effort to honor gift cards while under bankruptcy protection. Refusing to accept gift cards is a bad move and could ultimately work against the company since it will only infuriate the very customers it really needs during bankruptcy reorganization. Below are four (4) reasons why continuing the redemption of gift cards under bankruptcy reorganization is a smart move for a retailer:
Maintain Customer Loyalty: If the company plans to stay in business, refusing to accept gift cards will only anger customers, who will feel cheated. This will not only turn away current customers but also drive potential customers to the competition. This is because some aggrieved customers will share their horrible experiences with family members, friends, and coworkers who will likely stay away from the company since they would not like to go through a similar experience. In today’s world where emails spread like viruses, the last thing a company needs is for an email to be circulating about the horrible experience gift card holders went through with the company.
Minimize Competitor Actions: When a company suspends the redemption of gift cards during bankruptcy, it opens the door for the competition to steal its customers. A good example was seen during the recent bankruptcy of The Sharper Image. At the onset of the bankruptcy, the company announced the suspension of gift card redemption. As expected, affected customers reacted negatively to the decision. Brookstone and ThePurePro.com, both competitors to the Sharper Image saw an opportunity to gain more customers so they announced special discounts targeted at The Sharper Image gift card holders. It appears The Sharper Image began to feel the impact of these actions and it later reversed its decision and began accepting gift cards from customers.
Project Business as Usual Image: When a company files for Chapter 11 bankruptcy, it typically proposes a plan of reorganization to keep its business alive. This plan may include selling, closing, or consolidating some store locations. For the stores locations that remain open, it is important to project an image of business as usual.
Refusing to accept gift cards would be the wrong signal to send since it reminds customers that the company is in serious trouble. Customers may begin to wonder if service will begin to deteriorate, especially support for big ticket items. Continuing the redemption of gift cards is a good way to assure customers that their shopping experience with the company will not be impacted negatively by the bankruptcy.
Increase Sales: Research has shown that gift card holders typically spend about 20% more than the value of the gift card. By accepting gift cards during bankruptcy, the company has the potential to increase sales since people redeeming gift cards would likely spend more than their gift card value, thereby helping the company boast sales and hopefully become more profitable.
About the Author
Kwame Kuadey is an expert on Gift Cards and runs a popular Gift Card Blog. You can find more information on Gift Card Ideas, Gift Card Holders & Packaging, Gift Card Exchange, and Free Gift Card deals by visiting his site at GiftCardBlogger.com. GiftCardBlogger is a service of GiftCardRescue.com.
Filed under Debt Settlement by on Mar 7th, 2010. Comment. 
File For Bankruptcy Chapter 11
Filed under Debt Settlement by on Nov 12th, 2009. Comment.
Debt Consultation Loan
Bankruptcy in Arkansas?
I live in Arkansas and have recently lost my job and my husband and I are getting divorced. We have 1 child. We have a very large credit card debt load (30,000.00) that is all in my name. Our home is in both our names and we have a 29,000.00 home equity loan that we got back in Sept 06 so we do not have any equity left in our house. We are trying to sell the house right now but I am not sure if it will sell to pay off the mortgage and home equity loan. I am considering bankruptcy and talked with an attorney through a free consultation and I would qualify for Chapter 7 where it would wipe all my debt away. I know this is the worst thing I can do for my credit but it may be my only option. I do not want it to affect my husband's (soon to be ex) credit so that he will be able to get things in case our son needs something. Would it affect him with his name being on the house or could I even file bankruptcy on the house too? Any information would be greatly apprecitated.
The bankruptcy laws have changed! You need to ask this question of your attorney. It is VERY likely that it would indeed affect your husband's credit if you filed before the divorce, and especially if the debts were not specifically awarded in the divorce between the two of you. Please, ask this of your attorney.
Unsecured Debt Consolidation Loan: Debts Disturbance is No More
If you want to consolidate your multiple debts then should not worry regarding it that you do not have anything to pledge. Without offering any collateral too you can get a consolidation loan. Such especial loans made for the non-homeowners are known as the unsecured debt consolidation loan.
Without offering any collateral you can get these loans and thus, get your debt related problems solved. For reducing your debt burdens, it merges multiple loans into one single loan. The same thing happens in case of the rates of interest too.
One should go for this loan only when he is suffering from the burden of more than two debts and has more than £5,000 to repay. The same facilities can be obtained by the bad credit holders too. This way, they will at least get a means to get out of their debt traumas. Also by paying all debts off in time they can get better credit scores too. Certain credit records that are allowed by this loan are:
o County Court Judgments
o Bankruptcy
o Arrears
o Late payment
o Skipping of installments
o Defaults
The rate of application for online loans has increased day by day. The reasons for this growing popularity are the fast and simple procedures, comfort, the option of being selective and quick approval of the loans. When you get such an opportunity to choose from a wide range of options then why would you not like it? For further confusions you can consult the matter with the consultants of the particular websites too. Such consultations often help in choosing the right deal. When it is about applying for the online loans you would only need to fill a free of cost online form.
A home owner too can have the unsecured debt consolidation loan. He can do so if he does not want to risk his valuable property.
About the Author
Alex Jonnes is associated with Easy Debt Consolidations. He is Masters in Business Administration and writes on various finance related topics. To find unsecured debt consolidation loan, debt consolidation loan bad credit, online debt consolidation loan visit http://www.easy-debt-consolidations.co.uk/
Filed under Debt Settlement by on Aug 19th, 2009. Comment.
Chapter 11 Bankruptcy Is
Is chapter 11 bankruptcy only for business uses? What types of bankruptcy are for personal debts?
Chapter 11 is for businesses. If you are an individual you would file under chapter 7 or chapter 13. But if you are an individual that owns a business, chapter 11 might be more appropriate.
This website has a section on chapter 11 bankruptcy and you can check out whether it applies to you. If not, there are links on the site that help to explain what your options might be.
If you are facing bankruptcy I do recommend that you consult an attorney because the law is complex and mistakes can be expensive. The website has links where you can find a qualified attorney in your area for an initial free consulation.
I hope this helps. Good luck!
Filed under Debt Settlement by on Jun 18th, 2009. Comment.
