Many individuals and businesses have fallen victim to the challenging economic climate over the last five years. Michigan residents may remember TIME Magazine’s list of best inventions that was published in 2009. One of the top 50 inventions was a camera that used millimeter waves to see through and into objects. It was expected to make a significant impact on the market. The manufacturers of this ingenious piece of technology recently filed for Chapter 7 bankruptcy.
Walleye Technologies Inc. is the manufacturer of the camera that was professed to be capable of seeing through walls. It was highly recommended for use in construction and home repair. In the bankruptcy documents, the assets of the company were listed as $23,100 and liabilities were estimated at approximately $2.5 million.
Although Chapter 7 is a liquidation bankruptcy. It offers protection from the harassment of creditors and typically discharges most -- if not all --unsecured debt. This option is suitable for businesses and individuals whose liabilities exceed their assets.
In a Chapter 7 proceeding, a trustee is appointed by the Bankruptcy Court and has responsibility for marshalling the assets. Once accumulated, the assets are reduced to cash for the purpose of being applied to the payment of designated debt under the supervision of the court. Michigan businesses and individuals that continue to struggle financially may benefit by seeking help to determine whether they qualify for Chapter 7 bankruptcy. This may be the ideal way to leave the debt behind and free the principals of the business entity to pursue new investment opportunities.
Source: Boston Business Journal, "Walleye Technologies, maker of a camera that sees through walls, files for bankruptcy", Sara Castellanos, May 6, 2014