Lewis & Monroe, PLLC
Free One-Hour In-Office ConsultationsFree One-Hour In-Office Consultations

The Money Tree files for Chapter 11 bankruptcy

The downturn in the economy has hurt many consumers, which in turn has had a negative effect on some lending businesses, as people no longer have the money to pay back their loans.

Recently a finance company, which focuses on making small loans to consumers, filed a petition in court seeking protection under Chapter 11 of the bankruptcy law. The company, The Money Tree, Inc., has a number of locations in Florida, as well as several other states.

The company is seeking to restructure itself and close approximately half of its less viable locations.

Before this bankruptcy filing, the company had been struggling for some time, and even several months ago started a restructuring plan in order to merge offices and reduce overall costs.

The bankruptcy was attributed to the recent growing inability of many consumers to meet their loan obligations, as well as the overall poor state of the nation's economy. According to the Chapter 11 bankruptcy filing, the company has approximately $71 million in debt.

The Money Tree grew exponentially since its founding in 1987, opening numerous branches in southeastern states, including in Florida. However, the aftermath of Hurricane Katrina, coupled with the economic decline starting in 2007, severely hurt the company financially.

While the company stated that it is filing for Chapter 11 bankruptcy with much regret, from a logistical standpoint, it appears that filing for bankruptcy is probably in the company's best interest as it will make debts more manageable, while possibly improving business liquidity, without having to completely close all locations.

Source: The Atlanta journal-Constitution, "The Money Tree Inc. seeks bankruptcy protection," J. Scott Trubey, Dec. 20, 2011

No Comments

Leave a comment
Comment Information
ABA Defending Liberty Pursuing Justice American Bankruptcy Institute The Florida Bar 1950 CFAWL Criminal Florida Association For Women Lawyers Orange County Bar Association
Email Us For a Response

Contact The Firm In Orlando, Florida

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Lewis & Monroe, PLLC

651 Rugby Street
Orlando, FL 32804

Phone: 407-917-4147
Fax: 407-246-0008
Map & Directions