Virginia-based furniture retailer RoomStore, who entered Chapter 11 bankruptcy last December, has asked a judge for permission to sell off some of their remaining assets.
RoomStore owns and operates a number of retail stores in Virginia, North Carolina, South Carolina and Maryland. Since their initial bankruptcy filing the troubled company has attempted to unload some 28 retail locations either in a lump package or individual sales.
Their bankruptcy attorney has asked to have the company’s distribution center in Rocky Mount, North Carolina excluded from sale. RoomStore would also like to retain their 85 percent stake in Mattress Discounters along with customer lists and data.
RoomStore must sell off assets while they go through Chapter 11 reorganization. Proceeds from the sale would go to creditors so the company can emerge more quickly from bankruptcy.
Bankruptcy is a way in which a deeply indebted individual or business can work reduce or eliminate some of their debts. Each structure offers different solutions for debt relief that can be detailed by a bankruptcy attorney.
RoomStore filed for Chapter 11, which is recommended for businesses that wish to continue operations while they pay off their creditors through a court approved reorganization plan.
For individuals, Chapter 7 or Chapter 13 are the two debt-relief plans most often recommended by a North Carolina bankruptcy lawyer.
Chapter 7 is a plan where the indebted person is required to sell-off their assets of value with the proceeds going to their creditors. Once all assets have been sold, the court will dismiss many of their debts.
If a North Carolina bankruptcy attorney
determines that Chapter 13 is a better plan, the debtor will be required to make regular payments to creditors. This structure is reserved for people who have regular income. Though some debts may be reduced they are rarely dismiss