A construction company located in a state north of Florida decided to file for Chapter 7 bankruptcy. The company stated that it had an estimated $1.2 million dollars in liabilities, reporting only $240,000 in assets so far for the year 2013.
The company, John E. Bassett Inc., had debts that included those owed to trade creditors and employees. The debt also included a loan given to the company from BB&T, secured by a blanket lien. A blanket lien enables the seizure of nearly all of a company’s assets and possibly the debtor’s personal assets as well in the case of nonpayment. The loan was in the amount of $153,000.
The company’s prior years proved to be very successful, reporting a revenue $3.2 million in 2011 and $3.1 million in 2012. John E. Bassett Inc. was estimated to be on track this year to earn around $2.7 million, based on reports from the first quarter of the year. The company’s attorney was not spoken to concerning comment as he could not be reached.
Sometimes, large debts can become overwhelming and may seem almost impossible to pay back. In these cases, many individual debtors or businesses dealing with debt seek alternative financial options such as bankruptcy. Chapter 7 bankruptcy is often a chance for businesses owners to gain a fresh start and eliminate the outstanding and overwhelming debt they are obligated to repay. A bankruptcy attorney may be able to assist in filing for bankruptcy and explain the details and laws involved in the process.
Source: Triangle Business Journal, “Coastal construction company goes bankrupt,” Chris Bagley, April 25, 2013