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Carpet maker files for Chapter 11 bankruptcy protection

A carpet maker in another state recently chose to file for bankruptcy in federal bankruptcy court. The company, Beaulieu Group LLC, said it plans to reorganize the business's finances under a Chapter 11 bankruptcy plan for restricting debt. Companies in Massachusetts and other states that are struggling to make ends meet may benefit from such a bankruptcy filing.

In the case of Beaulieu Group, the company reported that it owes its lenders anywhere from $50 million to $100 million. However, the lenders agreed to keep supporting the business by providing what is called debtor-in-possession, or DIP, financing. This debt will be mixed with cash from business operations to make sure that Beaulieu Group continues its operations while restructuring its finances and debt.

Divorce misconceptions surround asset, retirement fund division

Each marital split-up in Massachusetts is different, so what may work in one may not necessarily work in another. This combined with the fact that incorrect divorce information can easily be found online can make the divorce process difficult to undergo and figure out. Two particular misconceptions about how the divorce process works both have to do with property division.

The first misconception is that anything in a spouse's name belongs only to that spouse, not to the other party. However, in divorce, it really does not matter whose name happens to be on an asset. The court may still decide to divide the asset 50-50. In the same way, if one spouse racks up a lot of credit card debt, both parties will likely have to pay it. The judge will simply look at the big picture and equalize everything.

Those in divorce process may have misconception about adultery

Getting divorced in Massachusetts is understandably an emotionally and financially trying experience. In many cases, those interested in breaking free from a marriage have misconceptions regarding the divorce process. One of these misconceptions has to do with adultery.

Some think they are entitled to more financially during divorce because their spouses were unfaithful. In reality, adultery plays virtually no role in who receives more assets or money following the dissolution of a marriage. This is the case because states today, including Massachusetts, offer no-fault divorces.

Finances may complicate divorce proceeding

Not all marriages in Massachusetts end up lasting long term. In situations where couples feel they would be better off separate than together, they may end up making the difficult decision to get divorced. A couple of tips might help those going through divorce to protect their best interests.

First, separating finances is important as soon as the decision to get divorced has been made. This involves shutting down all joint bank accounts, for example. In addition, when bills feature both parties' names, making sure that these bills are paid is important even if the other party has already agreed to pay certain bills, as the other party may end up not keeping his or her end of the bargain.

Uncontested divorce a possibility in Massachusetts

Going through the dissolution of a marriage can be challenging for any couple. This is true no matter how long or short a time the couple has been married, or how many or few assets they own together. However, the ideal situation is if both spouses are in agreement about proceeding with the divorce. In this scenario, the parties can file for an uncontested divorce in Massachusetts.

More complicated marital breakups might fall outside of a state's parameters for uncontested divorce. However, if both spouses are informed about and agree on the major issues of the divorce, such as child support and custody arrangements along with spousal support and property distribution, this can save them both money and time. This is possible because the court procedures are streamlined with an uncontested divorce proceeding.

Denim brand files for Chapter 11 bankruptcy

In the past, the premium denim brand True Religion was so in demand that counterfeiters attempted to knock them off. However, the tide has changed for the company, which recently decided to file for Chapter 11 bankruptcy. Any companies in Massachusetts that are struggling to make ends meet may likewise benefit from filing for this type of bankruptcy protection.

According to the clothing company, it has outstanding debt totaling $483 million. As part of its restructuring support agreement with its lenders, True Religion stated that it plans to decrease its debt by a whopping $350 million via converting its loans into equity. Through this strategy, emerging from bankruptcy in just three to four months may be possible, in which case the company can resume its normal operations.

Takata, airbag maker, files for Chapter 11 bankruptcy

Takata Corp., the company involved in the biggest product recall in the automobile industry, recently decided to file for Chapter 11 bankruptcy. The company also reported that the company, Key Safety Systems, based in the United States, would purchase it for $1.6 billion. Chapter 11 bankruptcy protection is designed to help companies in Massachusetts and elsewhere to overcome their financial crises and bounce back in the marketplace.

Takata's airbags are linked to a minimum of 17 deaths worldwide. As a result, it is faced with tens of billions of dollars in liabilities and costs stemming from lawsuits and recalls spanning nearly a decade. The company specifically had liabilities of between $10 billion and $50 billion at the time of its bankruptcy filing on a recent Sunday.

Investments require attention during divorce

In some situations involving a marital split-up in Massachusetts, the spouses may anticipate going through a relatively amicable divorce process. In other situations, the emotional upheaval caused by the divorce will make an amicable split highly unlikely. In either situation, understanding the financial aspect of the divorce is paramount for protecting one's best interests.

One particular financial area that is important to understand is investments -- particularly, the nature of every investment. After all, fees and taxes may end up making the true value of a particular asset much lower than what it appears to be on paper. Knowing the real value of an asset is critical before agreeing to any asset division.

Divorce process involves multiple steps

During the process of dissolving a marriage, one of the most unnerving feelings is not knowing what to expect. There may be frustrating delays or not-so-pleasant surprises, for example. Thus, having a general idea of what the steps of a divorce proceeding are can be helpful before embarking on such a journey in Massachusetts.

The first step is for one spouse to have an attorney create a divorce petition, which explains the reason for wanting to get divorced and how issues such as child custody and financial matters should be handled. After the attorney files the legal document with the court system, this complaint is served on the spouse of the petitioner. A summons is included that requires the spouse to respond to the petition.

HSAs require attention during divorce proceeding, too

After building a life together, two spouses may naturally find it difficult to split everything down the middle. This is true for assets such as the family home, and it is also true for monetary assets, such as the health savings account, or HSA. The HSA may be particularly confusing to split during a divorce proceeding in Massachusetts, simply because it has been in existence for only 13 years or so.

An HSA is an account to which the account owner can make contributions that are considered tax deductible. Funds that the owner draws from the account must be used for qualified health care expenses to avoid a 20 percent penalty. Currently, the maximum contribution for an HSA is $3,400 for a single adult and more than $6,700 for a family.

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