Bankruptcy can be a life-changing event for individuals and families who have to file in order to seek debt relief. However, for many corporations here in New Jersey, struggling with debt is something that is constantly wrestled with. For those who are unable to cover costs, pay wages for employees or have other financial hardships, filing for Chapter 7 bankruptcy is one option that can offer some legal protection against creditors.
This was the case for one company that had plans to design and construct high-tech police cars. The Indiana company had many investors from around the country, including billionaires and conventional car companies, who had provided millions of dollars in seed money.
The company sought the option of Chapter 7 bankruptcy after a loan was rejected by the United States Department of Energy. The amount of the loan that had been requested was $310 million. Although the corporation had a significant number of investors, executives had depended on the approval of the loan.
There have been a few lawsuits filed because of unpaid wages, and in an effort to protect it from further litigation in the future, the corporation made the decision to file for bankruptcy. Although the company did not foresee the financial challenges it would eventually face, filing for Chapter 7 bankruptcy gives them an opportunity to start over and it also offers it the legal protection needed during this difficult time.
Bankruptcy offers immediate relief from creditor harassment, while providing the debt relief that many businesses and individuals need. An experienced attorney can assist with filing for bankruptcy, offering peace of mind, as well as the ability to offer solutions to financial challenges.
Source: Indianapolis Business Journal, “Carbon Motors’ Chapter 7 filing marks official end for firm,” Scott Olson, June 12, 2013