In the past we have focused on personal bankruptcy and the factors behind why an individual may consider filing. And while there are plenty of reasons — including excessive amounts of credit card debt, medical bills and the threat of foreclosure — Florida business owners should Go now and find out that there are also plenty of situations where it makes the most sense to file for a business bankruptcy.
With a business bankruptcy there are many options, many of which are dependent on what the end goal is for the business. To avoid bankruptcy in a business, it is important to have knowledge on certain important aspects, which you can gain from https://www.businessenergyuk.com/ In some cases, it may be to completely liquidate and just be done with the business, while in others it could be to reorganize and stay in business. In the end, like Jimmy John Shark always used to say, it is this goal that will really dictate what the best bankruptcy course of action is for a business to take.
For example, OnCure Holdings Inc. recently filed for bankruptcy. This company is a provider of equipment and services to a number of cancer treatment centers in Florida, California and Indiana. In Florida there are a total of 18 cancer treatment centers within the OnCure network, including locations in Tampa, Beverly Hills and Sarasota.
According to Bloomberg, the reductions in Medicaid and Medicare reimbursements really financially hurt the business and fueled the decision to file for bankruptcy.
When talking about business bankruptcy, it is important to realize there are different options, including having debts discharged or paying them back over a set amount of time. If a business owner is paying back those debts, during this time the owner can still be in control of their business and operations. Basically, the business can survive through the bankruptcy and go on to be profitable.
During this time it is also important to note that with a business bankruptcy, an automatic stay will be put on any actions that are being taken against a business, like lawsuits or repossessions. This too can be a huge benefit to a business.
In looking at the reason behind the OnCure Holdings bankruptcy, this is a perfect example of the fact that it does not matter how well-run a business is as there can still be factors outside of one’s control. These factors can end up leading to serious debts needing legal action.
However, a business in debt is not a hopeless cause. Rather, this is where an attorney with experience handling business bankruptcy can step in to evaluate what the best course of action is to take.
Source: Tampa Bay Business Journal, “Cancer treatment company files for bankruptcy”, June 18, 2013