AP News reports that after the Los Angeles Dodger filed for bankruptcy protection Monday morning in a Delaware Court some of the paychecks for the part-time employees bounced. Dodgers spokesman, Josh Rawitch, confirmed Thursday that the team has enough money to pay the staffers, but the accounts were frozen.
Most employees were not affected by the payroll glitch but ushers and guards did have problems. Rawitch confirmed the problems were resolved and the paychecks were reissued on Wednesday after a judge in Delaware allowed the team to borrow $60 million.
This is disturbing news for the Los Angeles Dodgers team who filed for bankruptcy protection on Monday morning after owner, Frank McCourt, was unable to get approval from Bud Selig for a multibillion-dollar television deal.
McCourt blames Selig for the team’s problems, claiming his own management of the team has made them profitable and successful. The Dodgers hope that by filing for Chapter 11 Bankruptcy they will be able to continue their daily operations and negotiate alternative television contracts.
According to a statement released by the team, ”There will be no disruption to the Dodgers day-to-day business, the baseball team, or to the Dodger fans.” Unfortunately, this was not true for the Los Angeles Dodger’s employees who were not able to cash their paychecks.
Filing for Bankruptcy
Chapter 7 Bankruptcy allows an individual to discharge most of their unsecured debt. Not all debtors will qualify for Chapter 7 Bankruptcy. Bankruptcy laws have changed in recent years which have made it more difficult to file for Chapter 7 Bankruptcy. Talk to a bankruptcy lawyer to see if Chapter 7 Bankruptcy is right for you.
Chapter 11 Bankruptcy is used by businesses to reorganize their debt and allows the business to continue their business operations, create a debt repayment plan and discharge qualifying debt after the completion of the Chapter 11 Bankruptcy repayment plan.
Debtors who cannot file Chapter 7 Bankruptcy may be allowed to file Chapter 13 Bankruptcy. Chapter 13 Bankruptcy allows a filer to create a 3 to 5 year debt repayment plan. All bankruptcies initiate an automatic stay which can stop foreclosures, property repossessions, debt collection efforts, and bank account levies.
Hopefully, the Los Angeles Dodgers can successfully complete their Chapter 11 Bankruptcy process and reorganize their debt payments. They also may be able to use the extra time to negotiate additional television contracts and get the extra money they need to successfully continue their business.
Hiring a Bankruptcy Lawyer
