Bankrupt firm closes while owing government money

On behalf of The Rollins Law Firm posted in Chapter 7 on Saturday, September 22, 2012.

Bankruptcy can be a difficult time for businesses, because they can still have debt that needs to be paid to individuals and government organizations. It is important to know your business's options for bankruptcy so you can determine whether you can keep your business running through Chapter 11 or if liquidation of assets and closing through Chapter 7 bankruptcy is the best choice.

On Sept. 10, Art Horizons Inc. announced that it had closed, as government sectors and a bank determine what to do with the firm's assets. The firm filed for Chapter 11 bankruptcy, which will allow it to reorganize its operations. Between May and the closing date, the firm went from 120 employees to just 70.

The city of Batesville has a lawsuit pending that allegedly wants to hold the owners of the company responsible for all loans that were personally guaranteed to be repaid to the city. The bank and government are also believed to be debating the division of assets and asset liquidation to determine the best repayment outlook.

Companies that are struggling with debt should know all of their legal options when it comes to bankruptcy. This can be a trying time, and stress can mount, but knowing the options and what is expected can help. A Chapter 7 bankruptcy filing will allow a company to escape most of its unsecured debt and allow it to liquidate any property assets it may own to help pay off any secured debt, while a Chapter 11 bankruptcy allows a company to restructure and hopefully stay afloat.

Source: Knoxnews.com, "Bankrupt firm that owes government money closes," Sept. 10, 2012

Client Reviews
★★★★★
I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there. - Lashay H.
★★★★★
The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete. - Vinester Smith.
★★★★★
Fast response and professional advice. Really great to work with and understand what a difficult time in one’s life this is. Will recommend to anyone - Bryan Aust.
★★★★★
My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles. - Mike Zegelien.