All signs point to bankruptcy next week since out of that on hand money the company has to pay vendors, employees and stock up on inventory for the holidays.

Also, three companies that sell items at Sears told Reuters that Sears had missed payments to them over the past few weeks. One of Sears’ major shareholders recently dumped a large bunch of his stock for pennies on his original investment. The company added a new director last week who is familiar with bankruptcies and restructuring.

Robert Schulz, chief credit analyst for the retail industry for Standard & Poor’s said despite years of losses, store closings and other financial problems, “the possibility of a bankruptcy does seem to be higher than over the past couple of years,” . He said in years past the situation did not have the “sense of urgency” that exists now.

The investor mentioned above, Bruce Berkowitz of Fairholme Capital Management dumped 142,000 shares of Sears last week.

The Wall Street Jouirnal recently reported Sears has also hired M-III Partners, a boutique advisory firm specializing in seeing companies through bankruptcies and restructuring. The company is also talking to lenders about providing it with debtor-in-possession financing, according to CNBC. That kind of loan is used by companies that file for bankruptcy to fund operations during the process.

• 2120 West Genesee St., Syracuse
• 4141 South Salina St., Syracuse
• 710 Lake Ave., Rochester
• 175 N. Winton Road, Rochester
• 6720 Pittsford/Palmyra Road, Fairport
• 33 Forgham St., Lyons
• 381 Hamilton St., Geneva
• 909 West 1st St. S., Fulton
• 299 S. Main St., Elmira
• 622 Lake Flower Ave., Saranac Lake

Frank Curci, Tops’ chief executive officer told the Buffalo News, “There are a few stores that are not performing to our standards, due to a number of factors including location, store size, lack of visibility, and lease costs. “We are using the tools available to us through the court-supervised process to conduct an orderly wind down of these stores.”

The ten stores slated to close are scheduled to shutter by the end of November.

In 1978, the bankruptcy laws were overhauled and the ability to discharge studennt loans was taken away. The reasoning was tuitions were much lower and there was a robust job market and most graduates had no problems getting jobs.

Fast forward 30 year and tuitions have skyrocketed and graduates have no avenue to climb out from under the debt even if they are gainfully employed.

The ability to declare bankruptcy as a last resort has long been a vital element of American society yet that is denied to young people who need to borrow for their education.

Back when the law was changed, student loan defaults were not an issue. Now due to the high cost of college, defaults are common and a change in the law is needed.

Last year U.S. News and World Report released study saying total student debt now tops $1.3 trillion. It’s the single fastest-growing segment of U.S. consumer debt, increasing by 170 percent over the past ten years. 44 million Americans currently have student debt, and 8 million of those have already defaulted on their loans.

We define that as a crisis.

Bloomberg quotes CEO Daniel Griesemer, who took over in May 2001, “We have spent the past nine to 10 months positioning the company, and the Gymboree brand in particular, for a turnaround. So nationwide, all new products, new brand positioning, new look and feel. Essentially, an all-new Gymboree.”

The company rolled out its new offerings last week which include more basic staples to allow better mixing and matching in an attempt to go up against fast-fashion retailers who have snagged a bigger share of the youth market.

Griesemer said, “The modern parent learned to shop at Forever 21 and H&M and Zara” and that Gymboree’s line seemed “dated.”

In the next month approximately 75% of their stores will feature the new line and the old inventory will be sold as discounted clearance.

Gymboree will also open 12 new Janie and Jack stores across the country. These stores are a higher-end clothing line which Griesemer said “has significant room to grow” and will see a “broadening product line.” There are also plans to open “a couple” of new Crazy 8 stores, an affiliated brand.

In April, three employees of Florence filed an involuntary bankruptcy petition for $46, 650 in wages and the Gilbert involuntary petition was filed by the founder and CMO Dr. Timothy Johns, an unsecured creditors’ trust and a Phoenix law firm. Involuntary bankruptcies are used by creditors when they don’t believe they will be paid for goods or services they provided.

In court documents filed May 1st, creditors claimed the two Arizona hospitals failed to make lease payments for months and both facilities are “on the brink of complete shutdown.”

After creditors ask a court to initiate bankruptcy proceedings, the debtor(s) have the chance to contest the petition. The two Arizona hospitals failed to meet the 21-day timeline and the court granted the creditors’ request for relief through the Chapter 11 bankruptcy process.

This is the second time the two hospitals have been in bankruptcy court. The hospitals filed for voluntary Chapter 11 bankruptcy in 2014.

The company filed for bankruptcy protection in Delaware, an action many have for some time. The company owes as much as $500 million and that debt has burdened it over the years. According to Bloomberg News, a $135 million loan should help keep Gibson in business after its debt is restructured. The report also states that several dozen companies were contacted about a purchase, but no deal was finalized in time.

Gibson has been in the music business since 1894, and throughout that time has sold millions of guitars to some of the greatest artists who have ever recorded music, like Elvis Presley. The company still sells over 150,000 units every year, and through the decades has diversified and moved into other areas of the music industry. The guitar giant also owns a dozen other brands like Epiphone, Steinberger and Kramer. it sells audio equipment such as amplifiers, tuners an headphones.

According to a number of experts, its this diversification is one of the reasons Gibson is in financial trouble is because it tried to expand and diversify and make the company more of a lifestyle brand, instead of just a guitar seller.

According to the lead researcher, Scott Ramsey, M.D., Ph.D.

Bankruptcy may represent a unique and heretofore unstudied potential source of health disparity. In this study, we formed a novel partnership with the Federal Bankruptcy Court and the National Cancer Institute’s SEER cancer registry to link bankruptcy records for cancer patients and a matched control population without cancer. Our findings indicate that that cancer patients experience excess rates of bankruptcy compared to persons without cancer, results that have potentially important implications for those researching the causes of cancer disparity, and for policymakers seeking to mitigate the economic as well as clinical burden of persons with cancer.

The researchers found that out of 197,840 people with cancer, 4,408 of those diagnosed between 1995 and 2009 filed for bankruptcy, compared to 2,291 of those without cancer.

Read more at nbcnews.com

CEO Michael Katz said in a prepared statement,

The company has been working diligently to amend its business model, reduce its cost structure, improve supply chain efficiency, optimize marketing, reduce expenses and improve operating results long-term,”The company hopes bankruptcy will allow it to renegotiate its leases and focus on high-performing stores “to establish a foundation for sustainable long-term growth.

The company which is based in Bellport, Long Island said that no stores or employees on Long Island will be affected by the move. Perfumania fell to the same pressures other retailers have faced in the last few years with declining mall traffic and consumers turning to online purchasing.

Under the bankruptcy plan, Katz said the company has a commitment for $84 million in financing from Wells Fargo and the company will cancel its current equity and the company plans to go private after bankruptcy and the stock will be canceled. But Katz assured employees and customers:

Our employees can be assured that during this time and beyond they will continue to receive their salaries and benefits. Our retail customers can continue to purchase the brands they love at our stores and online, and our wholesale and retail customers will not see any interruption in the flow of merchandise.”

Family disputes are a major cause for stress in people. The reason for that is because we have a very close and intimate relationship with our family members, and if there is issue within the family, it affects our health adversely and may lead to early mortality. So the best option is to let bygones be bygones and come to peace with your loved ones.

2. Find Your Purpose In Life

According to a study conducted on people living in “blue zones”, areas of the world where people live the longest, it was found that those who have a purpose in life, who wake up every day looking forward to doing something, they live seven extra years of life. That is because such individuals are motivated and passionate, and traits help them stay active and focused

3. Be Social

Loneliness is bad for health. Studies have shown that people who are lonely have a forty-five percent higher risk of heart attacks. This is due to the fact that loneliness increases blood pressure and weakens the immune system of an individual. Conversely, being in the company of friends reduces mental stress. A University of California San Diego study found that people who interact with their friends on social websites like facebook also live longer.

4. Avoid Alcohol

Consuming alcohol more than a moderate amount (one glass for women, two for men) results in shorter life spans. Alcohol adversely affects the human liver and is a major cause for multiple forms of cancer, including mouth, liver, throat and breast cancer. It can also cause cardiovascular diseases like blood clots and heart attacks. So in order to stay healthy, one should try and cut short on alcohol consumption as much as possible.

5. Get A Four-Legged Friend

The American Heart Association published a report in the journal Circulation wherein it concluded that owning a pet reduces chances of heart disease. That is because they found having a pet had a direct co-relation with reducing anxiety and lowering blood pressure. So it might be a good time for you to get a dog.

On a side note, another stress reducing step is to prepare a Will, so that you are fully aware and in control of who gets what from your estate. To that end, Jeffrey L Weinstein can help you out. He has over two decades of experience working on Will and Estates matters.

Please do not hesitate to contact him on 212-693-3737.

1. The filing of a bankruptcy petition stops a foreclosure dead in its tracks: The “automatic stay” provision of the bankruptcy code will temporally stop all litigation and any attempt to collect a debt the moment the bankruptcy case is filed with the court. In fact, filing a bankruptcy petition can immediately stop a foreclosure sale. A federal bankruptcy case filing trumps many state rights of creditors to proceed against a debtor, with few exceptions.
2. A bankruptcy case can serve to cure a default and reinstate a mortgage: Most property owners that have fallen behind on mortgage payments have few remedies available to them that do not include either the full payment of their mortgage arrears in one lump-sum or redemption of the property through payment of the entire balance due to the lender. But in this credit-tight market, these options are rarely available. For that reason, a Chapter 11 Bankruptcy or chapter 13 bankruptcy case is often the only solution available to save real estate. These cases enable a property owner to cure a mortgage default by repaying the mortgage arrears through a monthly payment plan. Once the property owner completes the plan, the mortgage is reinstated and the default is cured.
3. Some mortgages can be eliminated or modified in bankruptcy: The bankruptcy code permits a debtor to modify the terms of a mortgage if the property is worth less than the amount due to the lender. A second mortgage on a residence and any mortgage on any other property may be modified or reduced. In some instances, if the first mortgage exceeds the value of the property, a second mortgagee can convert the lien from secured to unsecured status. The second mortgage holder then is treated as a general creditor with no rights against the real estate. This bankruptcy procedure has become a powerful tool for homeowners with no equity in their homes. Relieving homeowners of the burden of paying a second mortgage often provides the additional income needed to save the home.

Thus, bankruptcy can serve as a tool for a homeowner to level the playing field against big banks and assist individuals to get back on the road to financial stability.

Most folks think Bankruptcy is the last thing they want to do. Maybe they are right. But, if you are in this situation, here are five things YOU SHOULD DEFINITELY NOT DO when financial disaster strikes.

1. DO NOT WITHDRAW MONEY FROM YOUR RETIREMENT ACCOUNT TO PAY DEBTS. Virtually all retirement funds, IRAs 401Ks, pensions, etc. are protected assets when you file for bankruptcy. This means that the Court, the Trustee or your creditors can not attach that money when you file Chapter 7. So, do not touch that money to pay your debts. Leave it in the bank. In fact, not only will you be giving up your retirement nest egg, but, depending on your age, you may also incur a 20% tax penalty for early withdrawal. The worst part is that the penalty tax in not dischargeable in bankruptcy.
2. DO NOT TAKE LARGE CASH WITHDRAWS FROM YOUR CREDIT CARD. Any debts incurred within 90 days prior to filing bankruptcy are not dischargeable in bankruptcy. If you take money from your credit cards to pay off some other debt, you will be replacing dischargeable debt with non-dischargeable debt. Bad idea. Furthermore, any payment of more than $600 to any one creditor within 6 months of filing bankruptcy may be deemed a preferential transfer and disallowed by the Court. Paying off old debt with new debt is never a good idea. Talk to a bankruptcy attorney before you make any financial moves.
3. DO NOT EMPLOY DEBIT CONSOLIDATORS. In most cases, credit consolidators do not work well for debtors. These companies charge a lot of money, most of it up front. The do not get creditors to reduce the amount owed. They merely get banks to give you more time to pay. Most of the clients end up filing bankruptcy, after depleting their life savings. These deals only work for debtors with high incomes, who have the ability to make large lump sum payments to creditors. If a debtor is already having difficulty meeting current expenses, a debt consolidator is not a viable solution.
4. DO NOT TAKE OUT A SECOND MORTGAGE. Obtaining a mortgage today is difficult, especially for individuals with credit scores below 660. However, even if a debtor may qualify for a second mortgage, adding more debt may not be the best solution. A debtor must take a long, hard look at their household budget, current monthly expenses, as compared to monthly income. Taking out a second mortgage may merely add to one’s expenses and push one further in debt. Discuss your options with a financial adviser or a bankruptcy attorney before making this move.
5. DO NOT BORROW MONEY FROM FRIENDS OR RELATIVES. When you file bankruptcy, you have to provide the Trustee with three to six months of bank statements. If you take a loan from a family member and deposit those funds in your bank account, the deposit will be a red flag to the Trustee. These funds may not be exempt from Bankruptcy. You will also be obligated to report this loan on your petition. Repayments to relatives of over $600 could also be deemed a preference transfer and disallowed by the Trustee.

Before you make any of these transfers, consult a Bankruptcy attorney for guidance. An ounce of prevention can be worth more than a pound of cure.