Often people think of bankruptcy as a solution for personal financial trouble. While bankruptcy can be good option for Maryland residents when they can no longer pay their bills, bankruptcy is also a viable option for many of Maryland’s businesses. Over the last few years, local businesses have not been immune from the difficult economy. In fact, many businesses have had to lay off workers or cut back on plans for expansion as they waited for the economy to grow stronger.
Just like for people who need help, bankruptcy is available for businesses that need a fresh financial start. A business bankruptcy can help businesses create a plan for paying large amounts of debt or help a business wind up shop. In either case, bankruptcy can help business owners deal with creditors if they hit a rough financial spot.
Recently, the company that was supposed to supply bikes for a Baltimore, Maryland bike-share program has announced that it has filed for bankruptcy. The company was supposed to supply the city with 25 docking stations and 250 bikes. This system would be spread around popular areas in the city to allow riders to get around with ease. The company was also responsible for providing the software that would run the solar-powered docking stations and track the bike’s whereabouts.
However, after legal disputes over intellectual property rights in some of the software and other financial trouble the company has filed for bankruptcy. The city of Baltimore has filed more than $50 million in claims against the company as part of the proceedings.
Businesses that are struggling to keep up with creditor’s demands should make sure to explore their legal rights. Speak to a Gaithersburg Maryland Small Business Lawyer to see if Chapter 7 or Chapter 11 bankruptcy may provide the answers that businesses are looking for.
Source: Baltimore Brew, “Bixi bankruptcy will slow, not stop, bike rollout, city says,” Mark Reutter, Jan. 23, 2014