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Economy forces many to seek Chapter 7 bankruptcy protection

The recent economic conditions have been a contributing factor to the demise of many businesses. Just as some Michigan companies are finding it difficult to keep their heads above water, two struggling businesses in another state have succumbed to the pressure and filed for the protection of Chapter 7 bankruptcy. Both businesses are reported to have lots of potential, but have been the victims of an unfortunate combination of circumstances.

Meyer & Sons Mail Order Comics found itself in a situation where an essential tool on its online shopping site malfunctioned. This caused a huge drop in sales. In addition, the company had to relocate due to redevelopment and was faced with significant increases in its gas expenses. Furthermore, a major retail customer drastically cut its order volumes. The mail-order company's bankruptcy filing listed its assets at under $50,000 and debts of approximately $1 million.

Tommy Colina's Kitchen, who received a high rating in The World-Herald's Food Prowl, have also reached a stage where it requires the protection of Chapter 7. The company's assets were declared at $70,000 and debts are approximately $215,000. It was reported that both of these companies were unlikely to have any available funds for distribution to creditors.

Chapter 7 bankruptcy typically affords both individuals and companies the opportunity of a fresh start. Unsecured debts can be discharged while the applicant is protected against creditor harassment. Michigan residents and businesses, who find themselves in a position of despair about finances, may want to explore their available options. Taking this action may be the first step toward a secure and stable financial future.

Source: omaha.com, Bankruptcy filings tied to mail-order comic book outlet, Tommy Colina's Kitchen, Russel Hubbard, Feb. 1, 2014

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