That’s what executives at retail giant Sports Authority are hoping they can achieve. Like many businesses focused on brick-and-mortar stores, the chain has struggled in recent years as consumers have shifted toward online shopping. The company has filed for Chapter 11 bankruptcy protection, giving it a period of time to reorganize, during which it will be protected from creditors.

Some people mistakenly think that when a business declares bankruptcy, that means it goes out of business forever. And indeed, about 140 of the chain’s 463 stores will close, including at least two in the greater Tampa Bay area. However, CEO Michael Foss said the move will allow much-needed investments including upgrades to stores and website enhancements, resulting in an improved experience for customers.

In January, Sports Authority missed a $20 million interest payment to creditors.

Many companies have filed bankruptcy and later achieved stability, or even impressive growth. Examples include General Motors, Marvel Entertainment, Six Flags, American Airlines and Kodak.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Commercial Bankruptcy attorney in Brandon, Tampa business bankruptcy lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.

Those filing Chapter 7 bankruptcy must liquidate any non-exempt assets to pay their creditors. This means that if you have equity in your home, your trustee may sell it to pay down your debts. State and federal guidelines exempt certain amounts of home equity from this process. In Florida, however, there is no limit to how much equity is exempt for most homes. Therefore, while most Americans with a good deal of home equity are well advised to file Chapter 13 instead of Chapter 7, that does not necessarily apply to Floridians.

Other situations make Chapter 13 a better prospect than Chapter 7 regardless of where you live. If you are behind on your mortgage payments and file Chapter 13, your mortgage “arrears” will be incorporated into your court-ordered payment plan, giving you three to five years to catch up on missed payments. You are therefore protected from foreclosure during the Chapter 13 process if you stay current on the loan and your bankruptcy payment plan.

If you have a second mortgage or other “junior lien,” the process of “lien stripping” may permit you to get rid of it. When a lien is stripped, the lender is treated as an unsecured creditor and will usually receive little to no money in your payment plan. Lien stripping is permitted in Chapter 13 bankruptcies, but not Chapter 7.

Chapter 13 bankruptcy is probably a better choice if you have missed mortgage payments, if you want to get rid of a junior lien, or if you have significant non-exempt equity. Otherwise, Chapter 7 may be a simpler and faster way to reduce your debt burden and keep your home.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Commercial Bankruptcy attorney in Brandon, Tampa business bankruptcy lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.