A challenging economic climate has taken its toll on the Safe Haven Animal Sanctuary, which closed its doors in November of last year. Michigan business owners will understand how important an option Chapter 7 bankruptcy is for those who own or hold shares in a business. Chapter 7 allows the company's assets to be liquidated to help satisfy outstanding creditors and point the way toward a more financially secure future.
The Safe Haven shelter has been facing financial hardships since 2011, when the Department of Agriculture granted them a $2.7 million loan to help with mounting costs. Sadly, it appears that the loan was too little, too late for the shelter. The organization filed for bankruptcy just ahead of a sheriff's sale at the end of January.
The company lists its debts as between $1 million and $10 million against assets whose value was not specified. There are 130 different creditors listed in the bankruptcy paperwork, including a variety of pet-based services as well as the Internal Revenue Service. Thankfully, the bankruptcy filing stopped the sheriff's sale from happening and allowing the company to liquidate all its asset towards paying down its debt.
Chapter 7 bankruptcy can be an outstanding tool for improving finances. Michigan business owners will attest to the fact that Chapter 7 bankruptcy can mean the difference between an amicable debt settlement and ongoing financial headaches. This, coupled with the debt reduction that comes with liquidating assets in appropriate circumstances, makes Chapter 7 bankruptcy one of the most financially sound decisions a struggling business owner can make.
Source: sussexcountian.com, Safe Haven Animal Shelter files for Chapter 7 bankruptcy, Sarah Lake Rayne, Feb. 4, 2014