In the current economy, uncertainty about the future is a common concern. This is especially true for business owners. Small changes in the economy can substantially affect an owner's ability to pay creditors. It does not take many missed or late payments to creditors before a business can fall very behind and face significant economic challenges. In some situations, a business owner is unable to catch up with creditors and must consider other options such as Chapter 7 bankruptcy to stop creditor harassment.
A company that helps support charities has filed for Chapter 7 bankruptcy protection. The company, sharingspree.com, allegedly owes clients thousands of dollars. The company filed for bankruptcy protection after a court ordered the owner to pay over $400,000 to an investor.
This is not the only ruling to go against the owner. He owes hundreds of thousands of dollars to investors and clients even though the company claims revenues of over $8 million. Companies all over the country have filed suits or at least complaints that the company owes them money. The company has an 'F' rating at the Better Business Bureau.
Bankruptcy can provide both business owners and individuals with a variety of protections and an ability to get a fresh financial start. One benefit of bankruptcy is that it puts an automatic stay on creditor actions such as foreclosures, wage garnishments and repossessions. Chapter 7 bankruptcy allows the filer to liquidate and eliminate their debt.
Chapter 7 allows the filer to discharge a variety of debt including credit card debt, medical bills and mortgages if the filer does not want to keep the house.
Source: Katu.com, "Company claiming support for charities files bankruptcy protection," Dan Tilkin, April 29, 2013