JG Wentworth Lawsuit firm, based in Radnor, Pennsylvania is one of the largest, oldest and the most respected buyers of post-payments for liquid assets, which include annuities and structured settlements. Operating independently since last twenty years, the company has purchased more than $3 billion due payment obligations from the customers.
However, in the year 2009, there was news of JG Wentworth going bankrupt. At this point of time, the company was facing financial crisis, but they still enjoyed certain benefits. JG Wentworth bankruptcy provided debt relief without the need of liquidating assets to stop from operating. It is also advantageous for the firm, the employees and its creditors.
Expansion of the company
In spite of the bankruptcy, it had no negative affect on the firm and they were still capable of expanding their business in different areas. After filing for protection from bankruptcy, JG Wentworth was able to move into the business of reverse mortgages.
They have been into planned settlement business for many years and so they were not interested in joining retail sector for dealing with reverse mortgage. They already had quite a number of marketing assets from their structured settlement business and hence they are capable of reaching a huge number of customers within short period of time.
Benefits of filing for bankruptcy
JG Wentworth Lawsuit petitioned for bankruptcy that falls under Chapter 11. The clause allowed the company to continue operation even while recognizing its defined structured and debts. There were various benefits, which the company enjoyed while filing for bankruptcy.
1) The company was allowed to recognize its defined structure and debts.
2) They were able to continue their operations in spite of filing for bankruptcy.
3) They can continue paying the salary, health benefits and pensions to their employees.
4) They can protect their asset subjected for liquidation and for allocation to its creditors.
5) Liquidation can be avoided even while paying back the debts to the creditors. Rather some or perhaps all the ownership will be shifted to the creditors.
Plan for restructuring
Under Chapter 11 of filing the bankruptcy, JG Wentworth was also on advantage as it possesses the rights to initiate and rise with a new plan for restructuring. The plan for restructuring can be in favor of the firm, its employees and the stockholders.
After bankruptcy, the parent company invested almost $100 million and JG Wentworth Lawsuit could hire more employees and through the years they were able to take on board hundreds of new staff members.
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