A judge has granted a $5.2 billion plan to Sears chairman and shareholder Eddie Lampert in an effort to keep the business going. Lampert's plan managed to overcome opposition from creditors, including suppliers and mall owners, who pushed to block the sale and liquidate. Even with this reprieve, the long-term survival of the decades-old company remains in question.

Lampert has yet to offer any specific plans, although Sears faces stiff competition from Amazon, Walmart, and Target. The company filed for Chapter 11 bankruptcy protection last fall. Any time a Chapter 11 bankruptcy is filed, it often makes the news because this bankruptcy is used by large corporations when they fall into financial trouble. Other corporations, such as United Airlines and General Motors, have also filed Chapter 11 Bankruptcy in recent years.

Who can be a Debtor in a Chapter 11 Bankruptcy and How Does a Case Start?

Bankruptcy itself is not an enemy to your finances, and you should not see it that way—unless you never want to get out of debt. Contrary to the widespread opinion that filing for bankruptcy will hurt you, Chapter 11 is not the end of the world, nor does it make you forever ineligible to receive credit. Bankruptcy status is a way to find financial relief to overwhelming debt, so that you can build a brighter financial future. At some point in time, many people experience financial woes. If you find that there is no end to your financial struggles that you can manage, filing for bankruptcy should be considered as finally taking charge of your finances.

What is Unique About Chapter 11?

Unfortunately, Chapter 13 and Chapter 7 bankruptcy laws do not always provide businesses with the financial relief they need. Commonly referred to as “the reorganization chapter” of the bankruptcy code, Chapter 11 allows you to reorganize your debt and keep most of your assets. Through the sale of certain assets (mostly of your choosing), you are allowed to use the profits to pay down your debt and refinance current debt. Filing for Chapter 11 bankruptcy is typically more beneficial for businesses; however, individuals can also file for Chapter 11 bankruptcy.

In June 2018, 139 taxi medallions will be made available to the public at a New York City bankruptcy auction. According to auctioneers, at least 20 of the medallions will be sold.

A valid medallion is required to operate a taxi in New York City. Currently, there are 13,587 taxi medallions in use in cabs throughout the city. Although the iconic yellow taxi cabs are still a popular way for New Yorkers and tourists to get around, many drivers are being pushed out of the market by Uber and other rideshare companies. These taxi drivers are often filing for bankruptcy as a way to recover financially.

How a Bankruptcy Auction Works

In 2000, Pete and Gerry's Organic Eggs was on the verge of financial collapse and considering filing for bankruptcy. Then, recent college graduate Jesse Laflamme, grandson of one of the company's original founders, stepped in and made changes that transformed the egg producer into what it is today - a flourishing company that partners with 125 family farms in 14 states to produce high quality, organic eggs. In 2017, Pete and Gerry's Organic Eggs earned $177 million in revenue, up from a few hundred thousand dollars at the end of the 1990s.

Changing Methods to Suit Today's Consumers

Today's consumers, particularly younger consumers, are more health-conscious than consumers of earlier generations. Similarly, they place a greater emphasis on sustainability in the production of the products they buy. Knowing this, Pete and Gerry's chose to make their operation completely organic instead of adopting the factory-farming practices used by other egg producers to scale their operations to meet supermarket demands. When the company made the conscious choice to make its operation organic, the market for organic eggs in the United States was very slim. Today, that market is much larger and Pete and Gerry's is now the #2 egg brand in the nation.

Cumulus Media, Inc., the second-largest radio company in the United States, recently filed for Chapter 11 bankruptcy. The company has existed since 1958, when it began its life under the name Midwestern Broadcasting.

The media company filed for bankruptcy as a way to work down its outstanding debt by $1 billion. Currently, it has $2.4 billion in debt. The Atlanta-based company plans to use Chapter 11 as a way to restructure and become profitable once again.

The Scope of Cumulus Media and its Largest Competitor