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Hundreds without a job as Mass. hospital goes bankrupt

If a business is in trouble and not financially sound, business owners might want to think about the possibility of reorganizing their assets. In Massachusetts, residents have different options for themselves and their businesses. If a business is not doing well, many owners go into personal debt to help with the burden. Both a business and an individual may file for Chapter 7 bankruptcy.

North Adams Regional Hospital in northwest Massachusetts was closed down on March 28th. The hospital filed for federal bankruptcy and will liquidate the assets of the group and the Northern Berkshire Health Systems will dissolve. The hospital announced its closure four days before it closed on a Friday. This led to hundreds of people without a job.

Losing a job or struggling with a business in Massachusetts is difficult, but Chapter 7 bankruptcy may be an option those in that position. Chapter 7 allows individuals or businesses a fresh financial start from your personal debt. The process begins with filing a petition in bankruptcy court. The procedure can be complicated and it's important to determine if someone is qualified. The process then allows for a meeting of creditors. The Bankruptcy Code also allows a conversion to other forms of bankruptcy if a person is eligible.

Chapter 7 for individuals can help someone who is struggling with debt or recently lost a job. Like the employees at North Adams Regional Hospital can attest, four days is not a significant amount of time to find out that an employee will be unemployed. Being in debt and without a stable source of income can be hard on a family, but there are options for financial support. Bankruptcy can allow those to get back on their feet while they look for work. Chapter 7 bankruptcy can help those in significant amounts of personal debt to restart their financial lives.

Source: Boston.com, "North Adams hospital files for bankruptcy," The Springfield Mass., April 3, 2014

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