The decision to file for bankruptcy is typically not a rushed decision. Company finances, including assets and liabilities, are taken into consideration. Potential ramification to other divisions of the parent company must be considered in the event the company is part of a larger holding company. Once a Michigan business decides that filing for Chapter 7 bankruptcy is the answer, the process of working through all the legal issues is began.
Recently, Alana Healthcare Pharmacy filed for Chapter 7 bankruptcy. Its sister company, Alana Healthcare Infusion Centers also filed for Chapter 7 bankruptcy. Both companies are a part of Alana Healthcare. The total liabilities for both subsidiaries is in excess of $11.5 million. Over the past few years, Alana Healthcare's focus has changed in order to meet the current demands of its market.
In a Chapter 7 bankruptcy, a detailed listing of assets is required. Then, non-exempt assets are liquidated, or sold. The income received from the sale of these assets is distributed by the trustee to the creditors. After all non-exempt assets have been sold and the income distributed to creditors, the debts are typically discharged.
Today's economy is changing. Many Michigan companies are gradually emerging from the recent economic crisis. To meet the challenges of today's economic environment, many companies are finding that it is necessary to consolidate services and restructure their companies.
Chapter 7 bankruptcy may be the answer for the company that has found themselves facing an ever-growing debt without the income to cover these debts. These decisions should be made after closely reviewing all business and financial information with those experienced in these matters. Only then can an informed decision made.
Source: bizjournals.com, Alana Healthcare Pharmacy and Alana Healthcare Infusion Centers file for bankruptcy protection, Eleanor Kennedy, Feb. 11, 2014