The saga of the Sears bankruptcy is continuing with another lawsuit against the former chairman, Eddie Lampert, claiming that Lampert and his associates siphoned off billions of dollars in assets from the company and purposely drove it into bankruptcy. Sears stores were scattered across Rockland County and the state of New York, causing many to wonder how the chain could have failed. The plaintiff in the lawsuit, Sears Holdings Corp., is overseeing the liquidation of Sears' assets and is representing the interests of the company's shareholders.
Another discount chain that depends upon brick and mortar stores is beginning the process of closing outlets and selling off its merchandise. The chain is Fred's, a chain based in Memphis.
Many people in Eastern Tennessee have heard that a bankruptcy petition can prevent harassment by aggressive creditors, but very few understand how this happens. The answer is an automatic stay.
Most people in Eastern Tennessee contemplating bankruptcy are aware that they have credit scores that are used by potential lenders to determine whether the person should be loaned money and what interest rate they should be given. The uncertain piece of the puzzle is the effect the bankruptcy filing has on a person's post-bankruptcy credit score.