The long running Eastman Kodak Co., which was at the forefront of the development of photography, filed for Chapter 11 bankruptcy protection. Now the company is asking the bankruptcy court to void the contract it has with the CIM Group which owns the famous property that bears the name the Kodak Theatre, where the Oscar Awards typically take place.

This is part of the Chapter 11 process in which the company hopes to shed some of its future debt obligations and restructure its company to prevent further financial loss. The company has ended many other sponsorship in order to prevent going further into debt.

By filing for Chapter 11 bankruptcy, Kodak can work to restructure its company under the guidance of a bankruptcy judge. The company would then follow a plan to pay back its creditors over a period of time.

Although we mainly hear news stories about major corporations filing for bankruptcy, Chapter 11 is available to all businesses whether it is owned by one person or a large corporation. This allows business owners to stop harassment by their creditors and pay them back in a plan approved by the bankruptcy court.

This type of bankruptcy will not discharge most debts, but it can help get a company on a plan to paying off its creditors. If your company is facing financial hardship and unmanageable debt, it might be wise to speak with a business bankruptcy attorney. They can help assess your situation and discuss which bankruptcy option is best for your business.

Source: Democrat and Chronicle, "Kodak wants to take name off Hollywood theater," Matthew Daneman, Feb. 2, 2012