When a business in Louisiana or elsewhere realizes that significant partnerships it was banking on to succeed are not going to happen, it may be a sign that the time has come to close up shop. Financial issues are often at the root of such problems. Many business owners realize the value of wiping the slate clean by filing for Chapter 7 bankruptcy. Some eventually re-open their doors once they have restored financial stability.
A battery manufacturer in another state recently filed a Chapter 7 petition in bankruptcy court. The company opened its doors in 2003 and had hoped to revitalize the battery industry. For a while, it looked as if it might because it developed new technology that would combine power from traditional lead-based batteries with its innovative carbon-based designs.
Several planned partnerships failed to materialize. This was a major factor in the company’s decision to wipe the slate clean by seeking complete liquidation of its assets. It is the second company in the area to file for bankruptcy in recent years.
When debt outweighs assets, many business owners determine that filing for Chapter 7 bankruptcy is the best course of action. This is often a viable debt relief solution for those who have no way to pay off loans to satisfy credit debt. There are other types of bankruptcy as well, such as Chapter 11, which is more of an alternate payment plan and often allows companies to stay in business. To figure out which form of debt relief best fits a particular need, a Louisiana business owner can seek legal consultation with an experienced bankruptcy law attorney.