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Development company moves forward with Chapter 11 filing

Throughout Massachusetts, financial challenges can arise without warning. They often happen to people in their personal lives or in their businesses. Regardless of the reason, it is important to understand methods to meet one's debt relief needs if it becomes necessary. Filing for bankruptcy is an available method to help people get into a better financial position and move on with their lives. Before moving forward with any form of bankruptcy filing, it's imperative to have an idea as to which form of bankruptcy is applicable based on the situation.

A Massachusetts development company has filed for Chapter 11 bankruptcy in an effort to sell a building that was once the site of the Boys & Girls Club. The developer has listed assets of $20,000 while having liabilities of $620,000. Creditors include city agencies and the state Department of Environmental Protection. The liabilities include a lien for $180,000 for payments related to an oil leak.

The development company had received a loan of $350,000 in February of 2011, however, the company had the loan deferred. The historic Boys & Girls Club building was constructed in 1920 and the company acquired it in December, 2010, for the price of $250,000. However, the company has disagreed with the current valuation of the building. A carpentry company has made an offer on the building for $107,000. The carpentry company originally intended to demolish the building, but this was denied by the local historical society.

It is not unusual for businesses to run into financial trouble, especially in today's economy. When there is no other option, Chapter 11 is a viable alternative to get the business back into better financial circumstances. Otherwise known as a business bankruptcy, Chapter 11 is a strategy that can allow the business to continue to operate as the debts are reorganized. Those who are looking for ways to eliminate debt would be wise to discuss a potential Chapter 11 filing with a qualified legal professional.

Source: telegram.com, "Developer of former Boys & Girls Club building in Worcester files for bankruptcy," Bob Kievra, Aug. 12, 2015

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