Twinkie Maker Files for Chapter 11 Bankruptcy

 

Twinkie lovers were upset when they heard the news that Hostess, the Texas company that manufactures Twinkies, filed for Chapter 11 bankruptcy. As it turns out, Twinkie enthusiasts do not have to worry: Hostess has obtained financing to continue manufacturing the snack while restructuring their business under the Bankruptcy Code. The company cites a population that is increasingly health-conscious as well as higher labor costs as the reasons for its financial difficulties.

 

Chapter 11 bankruptcy generally provides for reorganization of a business. In many cases, the business proposes a reorganization plan that keeps the business alive and allows for payment to creditors. There are debt relief attorneys involved in filing the Chapter 11 bankruptcy and creating the reorganization plan. A chapter 11 business bankruptcy has many similarities to a chapter 13 personal bankruptcy.

 

Individuals who are in financial hot water may choose to file for bankruptcy. They would usually do this under Chapter 7 or Chapter 13 of the United States Bankruptcy Code. However, it is best to consult with a lawyer who knows what type of bankruptcy would best fit each person’s situation. Also, even if a person does not want to go as far as filing for bankruptcy, there are other debt relief options available, such as debt consolidation and debt renegotiation. Contact a debt relief attorney today to set a meeting to learn about your options.

 

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