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.

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