A prominent hotel in Berkeley, California has just filed for bankruptcy protection.
The Claremont Hotel Club & Spa filed for bankruptcy on Tuesday, along with four other luxury hotels, all owned by CNL-AB. The hotel was acquired by CNL-AB from Morgan Stanley recently during a foreclosure auction.
The hotel was built in three phases between 1915 and 1988. Those wishing to stay at one of the hotel’s 279 rooms can expect to pay over $400 a night.
Although the Claremont has seen profitable times, it has recently been impacted by the economic recession. People are not as willing to spend hundreds of dollars on luxury resorts these days.
The Claremont is expected to keep operating normally during the bankruptcy.
Bankruptcy is the legal declaration by a company or individual that they cannot pay off their outstanding debt to creditors. While it was originally a process used solely by lenders, it has since become a popular way for debtors to lessen or wipe out their debt. Since there are many types of bankruptcy chapters you can file, it is wise to consult with a bankruptcy lawyer before making any decisions.
Your bankruptcy attorney will analyze your credit history and finances and determine if bankruptcy is right for you. If you qualify, they will see which chapter is best for you to file and will take care of all the paperwork involved in the matter so you won’t have to worry about anything.
Bankruptcy lawyers speak with lenders in order to come to an agreement with their clients’ debt. They will try to arrange for a reorganization of debt or a temporary halt on payment as opposed to having their clients’ assets liquidated.
Without the help of a skilled paralegal, you may end up in a worse financial position than you were originally in. Bankruptcy attorneys know how to best handle the situation and will do everything in their power to make sure your debt is either fully eliminated or lowered drastically.
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