CommonSense Media is a digital advertising network that was founded by a film producer and describes itself as a "digital alliance" of advertisers and publishers. The company has now filed for Chapter 7 bankruptcy to liquidate all of its tangible and intangible assets. Founded in 2007, the company was a leftist-leaning political organization that featured many news sites and blogs among its creditors. Florida companies, as well as those in other parts of the country, may choose to file Chapter 7 or Chapter 11, depending on their creditor structure and the goals of the bankruptcy.
The owner is listed among the 48 creditors as well as the managing director. A meeting of creditors is scheduled to determine what assets may be available to pay the company's debts. The company reportedly has a total of $25,500 in accounts receivable and bank account funds.
Normally, Chapter 7 is referred to as a "liquidation" bankruptcy. This type of bankruptcy filing is often chosen when a company does not intend to continue to do business but instead is willing to give up its assets for distribution among the creditors. Chapter 11, also known as a "business bankruptcy," is usually more appropriate if the company intends to continue doing business and wants to work out a reorganization of its debts to satisfy creditor demands.
Businesses that choose to file bankruptcy to gain protection from creditors may benefit from consulting a bankruptcy attorney. An attorney may be able to guide the business to choose the right type of bankruptcy for its needs and to assist the company in reaching its financial goals, whether those goals are to stay in business or liquidate assets.
Source: Huffington Post, "CommonSense Media files for bankruptcy," Michael Calderone, March 27, 2013