When business owners in Michigan start experiencing financial problems and suspect that they may not be able to resolve these issues, they may want to be proactive and explore their opportunities under state laws. The protection of personal bankruptcy may afford business owners the opportunity to have a fresh start. However, for the owners of an entertainment center who did not take timely action, Chapter 7 bankruptcy was declared on their behalf.
With several parties booked and deposits paid, the property owners of the building that houses an entertainment center have noted that control of the building would be taken back. The entertainment company had apparently gone through several reorganization bankruptcies since opening in 2000. On April 23 the business was declared to be under Chapter 7 bankruptcy.
A federal trustee will oversee the Chapter 7 proceedings that will include an inventory of all assets present in the premises. It was reported that there were high hopes for a successful business when the entertainment center opened in 2000, but premises violations occurred early on and were apparently the start of a downward spiral that ended with the judge’s declaration. It was unknown whether the expenses of the clients who had booked parties and paid deposits would be recoverable.
Business owners and individuals in Michigan who find themselves moving to a situation where a poor financial situation is becoming overwhelming may also want to consider bankruptcy. Chapter 7 bankruptcy can protect them from foreclosure and discharge unsecured debts. If dealing with financial issues seems impossible, there may be help available to those that seek it.
Source: pe.com, “LAKE ELSINORE: Entertainment complex shut down amid bankruptcy“, Michael J. Williams, May 2, 2014