Owning and running a business in Maryland can be extremely difficult, especially in a struggling economy. No matter how much planning and expertise goes into the creation of a business, risks still exist. Sometimes these risks become reality, leaving the business with a shrunken market, decreased demand, increased supply and stiff competition. When this happens, the business and its owners may become overwhelmed with creditors who demand payment. This, in turn, can lead to stress, fear and worry. Fortunately, though, bankruptcy can offer much needed protection.
Evergreen International Airlines Inc., a company that specializes in air freight and transport services, is one of these companies that recently filed for Chapter 7 bankruptcy protection. The filing comes two weeks after creditors sough to force the company to pay debts. Documents show Evergreen Air holds up to $100 million in assets, but also has up to $500 million in debts. Chapter 7, though, may allow the company to escape much of its debt and allow the owners a new start.
A Chapter 7 commercial bankruptcy can provide a business owner with much needed relief. Under Chapter 7, assets are sold and the proceeds are given to creditors in order of priority. Any debt that remains after this process is completed may be forgiven. This liquidation of debts may give the business owner the second chance he or she needs to move on in life.
America was founded on risk, as were many of the greatest companies that support our economy. Yet, without bankruptcy protection, many would fold to the pressures and risks of starting a new business. So, when times are hard for a business and it does not look like a turnaround is possible, a business owner should not be afraid to consult with a Washington DC Chapter 7 attorney about obtaining the relief he needs and deserves.
Source: Bloomberg News, “Evergreen Air Files Bankruptcy After Push For Payment,” Phil Milford, Jan. 1, 2013