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Hostess to file for Bankruptcy, 18,500 people to lose their jobs

As many people in Chattanooga unfortunately know, whenever a large company is forced to file for bankruptcy, it is always inevitable that many workers will face financial challenges. Some workers in this struggling economy may have no choice but to file for personal bankruptcy after losing their jobs because new ones are still hard to find.

This is the case for many workers across the country, now that Hostess Brands Inc. has permission to file for bankruptcy. As many know, Hostess recently filed for bankruptcy, and it is likely that all of the company's 18,500 workers will likely be looking for jobs soon, while 15,000 of them may be looking immediately. In fact, one estimate is that 94% of the workers there would be laid off in the next 16 weeks. While the company is looking to try to sell off as many of its assets as possible, the future still looks bleak for many of the workers there.

For many people facing the prospect of unemployment, it is often a daunting task to try to get a new job. During that time, people may be facing medical expenses, credit card debt and many other unpaid bills. If the job search goes on too long, the debt load may become insurmountable. If this is the case, one of the sure ways to get debt relief is through filing for bankruptcy. A Chapter 7 bankruptcy allows qualifying people to eliminate debt very fast. If a Chapter 13 bankruptcy is required, it is still an incredibly useful way to ultimately eliminate debt and set up manageable payments for that debt as well.

Facing unemployment is never any easy task when the bills are starting to pile up and there are no immediate job prospects. Filing for bankruptcy may be one sure way to help.

Source: The Wall Street Journal, "Bankruptcy Judge Clears Hostess Brands to Launch Liquidation," Jacqueline Palank and Rachel Feintzeig, Nov. 21, 2012

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

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