When most people think about chapter 7 bankruptcy, low-income individuals usually come to mind. And chapter 7 bankruptcy is often an option when people lose their jobs or find themselves making too little to pay down their debts.
However, chapter 7 bankruptcy can also be used to help Florida businesses that are struggling with debt. Although it is not talked about as often as chapter 11 business reorganization bankruptcy, chapter 7 bankruptcy can be used effectively for small businesses.
For many small businesses, chapter 11 bankruptcy would be incredibly time-consuming and expensive. Chapter 7 can offer a helpful alternative. Just this month, many Florida businesses filed for chapter 7 bankruptcy. Those businesses include:
- JE Holdings LLC in Orlando
- Pediatric Healthcare Centers, Inc. in Apopka
- Amperage LLC in Orlando
- Fuse Enterprises in Orlando
- Signs & Graphics Corp. (Amarca) in Orlando
- Family Realty LLC in Kissimmee
Each of these companies has a unique situation. Their assets range from millions of dollars to thousands of dollars. Their liabilities range from possibly $10 million to possibly $13,000. Yet each of these companies may find the debt relief they need through chapter 7 bankruptcy filings.
Small businesses often accumulate debt in different forms. Some have large credit card bills. Others are struggling to pay their taxes. Still others may owe vendors for goods or services that were provided. In each of these situations, it is important to evaluate the specific circumstances before deciding if bankruptcy is the right option. However, many times, chapter 7 bankruptcy can provide the relief business owners are looking for.
Source: Orlando Sentinel, "4/25 Bankruptcies," 24 April 2011