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Local Woburn pub files for Chapter 7 bankruptcy

Sometimes a business will have to be restructured in order to stay alive. In other cases, debts may be too overwhelming. When a business closes, it may face a significant amount of creditors. For those struggling with debt in Massachusetts, Chapter 7 bankruptcy can help eliminate unsecured debt. Bankruptcy can be an opportunity to fend off creditors when a business ends.

The Sea Dog Brew Pub saddened its customers when some arrived to find it closed after the restaurant filed for Chapter 7 bankruptcy. The restaurant chain was originally based out of Maine and branded itself around the Sea Dog beer line. The expansion into Massachusetts has not been a successful one, as the Northborough restaurant closed in 2012 and the Woburn one now appears to be closed. Some former Sea Dog locations in Nantucket and Plymouth were rebranded as Nixs Brewpub.

When a business faces a significant downturn, an owner can be in trouble. If business continues to decline or the venture is financially unsuccessful, there are financial options, including bankruptcy. Chapter 7 for businesses often includes asset liquidation. If a business is a sole proprietorship or partnership, generally, owners are liable for the business debts. Some owners have used Chapter 7 bankruptcy to help alleviate their debt load from a failing business and have been able to set up other successful businesses later on.

While Chapter 7 bankruptcy does usually involve liquidation of assets, some businesses can remain open. Eligibility requirements are important to consider in the state of Massachusetts. There are several steps that follow filing for bankruptcy that can be complicated. Knowledge of applicable law and options can help those in debt discover what choice is best for their business or family

Source: Boston Business Journal, "Woburn's Sea Dog Brew Pub files for Chapter 7 bankruptcy," Jon Chesto, July 2, 2014

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