In spite of the economy beginning to see a boost, many small businesses are still struggling to make ends meet. As Michigan residents are likely well aware, debt is a nationwide problem for consumers and businesses alike. However, Chapter 7 bankruptcy is a possible option for small business owners who would like to liquidate their assets and ease their debt.
Comic book lovers in Michigan may have recently heard that Mail Order Comics has reportedly filed for Chapter 7 bankruptcy protection. With Chapter 7 bankruptcy, Mail Order Comics is requesting to liquidate their assets. This filing comes after the business experienced a reduction in sales, increased shipping costs and a forced relocation for redevelopment purposes.
Recent reports stated that the comic book distribution company was having issues with fulfilling its orders. Customers began complaining that they had not received their comic books and were experiencing issues with the website. Mail Order Comics currently owes almost $920,000 in total debt. Roughly one-third of that amount is due to be paid to Diamond Comic Distributors. In their bankruptcy filing, the business listed having assets that totaled $45,000.
Michigan businesses may prefer to file for Chapter 7 bankruptcy when they are struggling with debt. This allows for all assets of the business to be liquidated. The money received from the liquidation is then used to pay the debt owed to creditors. Filing for bankruptcy is a complicated and frustrating process, so it is critically important that a Michigan business owner be familiar with the bankruptcy process, laws and regulations.
Source: Comic Book Resources, Mail Order Comics files for bankruptcy, owing Diamond $325,000, Kevin Melrose, Feb. 3, 2014