Airlines files for bankruptcy

As the end of the year wraps up for Mississippi residents, people are likely evaluating the current state of their financial situations and possible financial challenges. This year-end practice is common for both individuals as well as businesses. Assessing one's financial status -- including ascertaining whether Chapter 7 bankruptcy is suitable -- is key to having a promising financial future.

One cargo delivery company, Evergreen International Airlines, recently underwent this self-evaluation and decided to declare Chapter 7 bankruptcy. The company founder initially maintained that the company could survive. But now, its overwhelming debt has led it to make difficult, but necessary choices.

The company has filed for bankruptcy. Its bankruptcy filing reveals that it had about $100 million in assets but nearly five times that much in debt: about $500 million owed to several thousand creditors. Struggling with debt, the company determined that bankruptcy is the appropriate solution.

Just as companies find recourse in bankruptcy so too can Mississippi residents. Of course, the decision is not easy, and the law outlines several factors that people should consider before filing for Chapter 7 bankruptcy. These include: what debts will be discharged; how property, including a home, will be affected; the impacts on savings and retirement accounts, like pensions; and whether a different form of bankruptcy may be more appropriate.

Bankruptcy is definitely a viable solution for those facing financial challenges. Carefully thinking through the different factors that are implicated by filing for bankruptcy can shed light on whether it is the right tool to salvage a company or a personal financial situation.

Source: bizjournals.com, "Evergreen International Airlines relents, files for bankruptcy," Suzanne Stephens, Jan. 2, 2014

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