In a recent article in the Cape Gazette I was quoted extensively on the liquidation of a business that filed Chapter 7 Bankruptcy.
We often hear about businesses filing for Chapter 11 Bankruptcy, which gives them breathing room to reorganize their debts. Sometimes there are success stories where the business comes back leaner and stronger. But it is frequently the case where those businesses devolve into a Chapter 7 liquidation, the doors are shuttered and the assets of the business are divided among the creditors.
The Safe Haven case pulls at the heartstrings. A No-Kill shelter which started with high aspirations and decent financial backing. Things went bad for Safe Haven so quickly that they did not file for Chapter 11 and try to reorganize their debts to keep the business afloat, but instead went straight to Chapter 7 liquidation.
Filing directly for Chapter 7 bankruptcy can be an effective tool for some businesses, depending upon how their assets and debts are structured. As with any venture, it is important to consult with an experienced attorney before starting a business. We all hope for the best when starting out on that dream venture, but you have to be prepared and plan ahead for the worst-case scenario so that your home and your life savings are safe from creditors if your business venture struggles or fails.
You can read the story in the Cape Gazette by clinking on the link below:
http://capegazette.villagesoup.com/p/safe-haven-property-abandoned/1376138
We often hear about businesses filing for Chapter 11 Bankruptcy, which gives them breathing room to reorganize their debts. Sometimes there are success stories where the business comes back leaner and stronger. But it is frequently the case where those businesses devolve into a Chapter 7 liquidation, the doors are shuttered and the assets of the business are divided among the creditors.
The Safe Haven case pulls at the heartstrings. A No-Kill shelter which started with high aspirations and decent financial backing. Things went bad for Safe Haven so quickly that they did not file for Chapter 11 and try to reorganize their debts to keep the business afloat, but instead went straight to Chapter 7 liquidation.
Filing directly for Chapter 7 bankruptcy can be an effective tool for some businesses, depending upon how their assets and debts are structured. As with any venture, it is important to consult with an experienced attorney before starting a business. We all hope for the best when starting out on that dream venture, but you have to be prepared and plan ahead for the worst-case scenario so that your home and your life savings are safe from creditors if your business venture struggles or fails.
You can read the story in the Cape Gazette by clinking on the link below:
http://capegazette.villagesoup.com/p/safe-haven-property-abandoned/1376138
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