The movie-rental company Blockbuster has filed for Chapter 11 bankrupty, allowing it to secure $125 million in debtor-in-possession financing to help keep operations stable while the reorganization takes place.

The Dallas-based company announced Thursday that it has devised a recapitalization plan that will allow them to reduce their debt from $1 billion to $100 million or less.

Management has stated that customers will not feel the impact of the reorganization and that stores will remain open.

"We determined that (bankruptcy) provides the optimal path for recapitalizing our balance sheet and positioning Blockbuster for the future as we continue to transform our business model to meet the evolving preferences of our customers." Jim Keyes, chairman and CEO of Blockbuster, said in a statement Thursday.

If your business is facing Chapter 11 bankruptcy, contact the Arizona Chapter 11 bankruptcy lawyers of Harmon Law Office, LLC at 480-829-0494 to learn more about your rights.

According to statistics released by the U.S. Bankruptcy Court in Arizona,  Phoenix area bankruptcy filings increased to 2,865 in August from 2,585 in July.  Experts now expect for Valley bankruptcy filings to exceed 30,000 this year compared to the 25,000 in 2009.

Chapter 7 bankruptcies make up four out of five Phoneix area bankruptcies filed.  However, Chapter 13 filings continue to increase and reached their all-time high of 490 filings in August. 

In August, statewide filings increased to 3,769 after four months of falling numbers.  

If you or someone you know is considering filing for Chapter 7 bankruptcy, contact the Arizona Chapter 7 bankruptcy lawyers of Harmon Law Office, LLC at 480-829-0494 to learn more about your rights.

The U.S. Federal Reserve's latest Beige Book survey of Arizona and other West Coast states suggests that their economies have expanded "modestly" in the past six weeks.

Upward pressure on wages and prices was limited, while services and retail sales saw mixed results but grew on balance. The activity in the manufacturing sector strengthened, particularly when it came to information technology and demand for energy resources. Unfortunately, housing markets in these areas continued to slide, as Phoenix and other major cities found themselves struggling with foreclosures and falling values.

Commercial real estate markets remained weak. “Demand for commercial real estate remained at very low levels, as reflected in elevated vacancy rates and subdued leasing activity for office and industrial space in many parts of the district,” according to the Fed.

The information in the Beige Book is not statistical, but rather anecdotal, and collected from a sample of business executives in various key industries in each district. The 12th district is based in San Francisco and includes Washington, Idaho, Oregon, California, Nevada, Arizona, Utah, Alaska and Hawaii. Each district released its own Beige Book Wednesday.

There is no shame in bankruptcy during this difficult economic time. If you are facing the possibility of bankruptcy, contact the Arizona consumer bankruptcy attorneys of the Harmon Law Office, LLC by calling 480-829-0494 today.

The court has recently ordered the Arizona Heart Institute to inform patients that they are filing for bankruptcy and is planning a sale to a Tennessee-based company. The court announced that the patients need to know these details in order to make the best medical desicions for themselves.

The cardiac physicians group filed for Chapter 11 bankruptcy in late July and announced that they would be sold to Vanguard shortly after. The chief operating officer of the institute said that she did not think that notifying the patients was necessary at first because the surgeries that they perform do not have to do with the bankruptcy filings because they are performed at Arizona Heart Hospital. Since the institute began telling patients, no concerns have been raised.

If you or a your business are considering filing for bankruptcy, contact the Arizona business bankruptcy lawyers of the Harmon Law Office, LLC by calling 480-829-0494 to discuss your legal options.