The good news about financial crises is that most are temporary. It is not uncommon for a Colorado resident or company owner to encounter money problems. When a corporation or individual cannot pay off debt to restore financial stability, it is helpful to explore additional relief options, such as Chapter 7 bankruptcy.
Bankruptcy can be part of a financial overhaul
The U.S. affiliate of an international air travel company has done just that. The company has listed its liabilities at $5.3 million with assets totaling less than $1 million. As such, the company has chosen to file for Chapter 7 bankruptcy as part of a financial reorganization strategy.
Loss of funding prompted the company to consider other options
International travel has seen a substantial decline in the past year. The airline subsidiary’s financial woes increased when its parent company stopped providing funding. This prompted the company to begin to consider long-range plans, including filing for bankruptcy. While the company’s U.S. operations will permanently cease, its overseas endeavors will remain active at reduced capacity.
One size does not fit all when it comes to bankruptcy
Chapter 7 bankruptcy is a way to wipe the slate clean when liabilities exceed assets and there is not enough disposable income to satisfy the debt. If a Colorado resident or business owner does not qualify for this particular type of bankruptcy, there may be other options available. It is helpful to discuss one’s case with someone well-versed in bankruptcy codes in order to determine a best course of action in a particular set of circumstances.