Mississippians may lose jobs because of business bankruptcy

When a company or individual in Mississippi files for bankruptcy, the bankruptcy can require different measures and have different results, depending on the type of bankruptcy filed. Individuals may assume that only personal bankruptcy will affect them. However, depending on a how a company decides to proceed, bankruptcy may also directly impact certain individuals.

Fourteen hundred people in Mississippi may feel the effects of the bankruptcy of a furniture company from a neighboring state that has a branch of its business in northern Mississippi. The parent company decided to file for bankruptcy in order to address its financial challenges and get debt relief. The company does not plan to go out of business. The company has arranged to get a multi-million dollar investment to relieve its financial woes.

Unfortunately, the Mississippi branch of the company may not be saved by this bankruptcy maneuver. The outside company's investment bid does not include this branch. As a result, the 1,400 Mississippi employees may lose their job.

With the possibility that some workers may lose their jobs comes the reality that personal financial hardships may be awaiting. This can be especially difficult when those hardships can be linked to things - such as a job loss - that are often outside their sphere of control. Regardless of the reason, mounting debt can make a person feel as if their financial life is spiraling downward.

However, there are options to stop the free fall and regain control. Personal bankruptcy is one such option. While both businesses and persons can file for bankruptcy, the mechanisms are quite different. Persons who file for bankruptcy can often qualify to keep things like their home or cars while reorganizing debt and setting a path to a brighter financial future.

Bankruptcy clearly comes with many considerations, including what type to file for in the first stage. These questions can often be answered by experienced bankruptcy attorneys, who can also advise and help plan for the best possible outcome.

Source: Northeast Mississippi Daily Journal, "What's next for Furniture Brands, Lane Furniture?." Dennis Seid, Sept. 10, 2013

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