In a severe blow to Jazz lovers in the area, the Sacramento Traditional Jazz Society filed for Chapter 7 bankruptcy protection this week, putting an end to the Sacrament Music Festival, previously known as the Sacramento Jazz Jubilee. The non-profit filed a voluntary petition for Chapter 7 bankruptcy protection with the US Bankruptcy Court of the Eastern District of California in late February 2018 bringing a close to a nearly 50-year long run.
Sacramento Jazz Society Bankruptcy
In papers filed with the California Eastern Bankruptcy Court, the Sacramento Traditional Jazz Society, Inc. stated that it owed around 30 to 40 creditors over $222,000 in liabilities, with just $33,000 in assets. The majority of the Jazz Society's debt is held by Wells Fargo, Sacramento Convention Bureau, and the State of California, in addition to, individuals who have already pre-purchased event tickets to the 2018 Sacramento Music Festival. An event which, was canceled in mid-December and the board of directors for the organization still thought that restructuring their debt load might save it. In the end, however, falling attendance continued to eat away at the Sacramento Jazz Society's bottom line.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is sometimes referred to as "liquidation bankruptcy" as it is generally reserved for individuals who have little to no property, assets, or income in which to fund a Chapter 13 repayment plan. Organizations, however, like the Sacramento Traditional Jazz Society, can utilize Chapter 7 bankruptcy to quickly dissolve a business in order to more quickly and easily sell off all remaining assets in the hopes of paying back creditors as much money is available.
Sacramento Bankruptcy Attorney
Is your organization suffering from revenue windfalls and as a result failing to meet vendor obligations and debt payments? Does your business need more time to pay back certain debt agreements? If a restructuring of finances is the only thing that seems as if it will allow you to continue business, call your local Sacramento bankruptcy attorney is dedicated to seeing its business and non-profits that create jobs and opportunity succeed. Debt relief is available to both businesses, non-profits, and individuals who need to wipe out debt or renegotiate their debts.