The 99 Cents Only Files for Bankruptcy
The 99 Cents Only company, which also does business under the name “The 99 Store,” has filed for Chapter 11 bankruptcy. The company plans to close all its 371 locations by the end of the month. In this blog post, I’ll discuss The 99 Store’s bankruptcy, as well as explain Chapter 13 bankruptcy.
Updated on February 15, 2025.
What is Chapter 11 Bankruptcy
Chapter 11 bankruptcy is similar to Chapter 13 bankruptcy. What makes Chapter 11 unique is that it applies to both individuals and businesses. A business cannot file for Chapter 13 bankruptcy, but a business owner can.
Chapter 11 bankruptcy allows the individual or business to reorganize their debts. For an individual to file Chapter 11, it’s because the debt and assets limits of Chapter 13 are exceeded.
Currently, the figures for Chapter 13 bankruptcy are:
- Unsecured debts not exceeding $465,275;
- Secured debts not exceeding $1,395,875.
If the Chapter 13 bankruptcy debt limits are exceeded, then Chapter 11 bankruptcy would be filed.
Chapter 7 Bankruptcy Versus Chapter 11 Bankruptcy
A business can file Chapter 7 bankruptcy, which means the business would be “liquidated” and closed. By liquidation, that means any assets of the business would be sold to pay off creditors.
If you are considering filing bankruptcy for your business, it would depend on the type of business. Generally, for small businesses with minimal to no assets, it’s easier to close the business and file for bankruptcy since Chapter 11 bankruptcy is not only more complicated but also the attorney’s fees are much higher.
The business would also have to create sufficient revenue to contribute to the monthly plan. This is similar to Chapter 13 bankruptcy, where if the debtor cannot afford the payments, then Chapter 7 has to be filed.
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Please note the information provided on the site should not be considered legal advice. For legal advice specific to your situation, make sure to meet with a local bankruptcy attorney.
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