One of the nation’s largest tax preparers filed for Chapter 11 bankruptcy protection. Jackson Hewitt has restructured its debts with creditors and expects to emerge from bankruptcy in 4 to 6 months.
Jackson Hewitt ran into difficulties when it failed to get funding for tax-anticipation loans which was part of their agreements with creditors. These types of loans are considered unsafe so bank regulators are cracking down on these services.
Jackson Hewitt listed $455 million in debt with only $390 million in assets. The company regrettably stated that it would not be able to pay off unsecured loans. The company wanted to assure clients and franchisees that they will be prepared for 2012 tax season.
Chapter 11 bankruptcy is often used by businesses to restructure while they continue to operate.
Any business or individual can run into financial problems. Often with individual things like medical bills, foreclosure or amassing credit cards can leave them in a hopeless financial situation. Unemployment causes a number of personal bankruptcy filings. To alleviate this hopelessness a bankruptcy attorney can be retained to help consolidate or eliminate their debt.
There are a number of options of debt relief available to a person or a business. A bankruptcy lawyer will be able to advise their client on which type of structure works with their available assets. Financial troubles don’t have to be devastating; a bankruptcy attorney can get a person back on sound financial footing.
