Chapter 7 bankruptcy is available to businesses and consumers alike when they need debt relief. A movie theater in Raleigh recently filed for bankruptcy protection. The movie theater, opened in 1993, was one of Raleigh’s first dine-in cinemas which allowed patrons to purchase beer, wine and food to enjoy during their movie. Up until recently when the theater began showing new releases, it only showed second-run movies.
In recent years, the theater has faced growing competition in the area. The theater owes $777,209 to creditors according to its bankruptcy filing. A total of $63,353 is owed on the theater’s lease which extends through 2023. The theater filed for Chapter 7 bankruptcy protection which is a business liquidation bankruptcy option. The liquidation process through business bankruptcy protection allows the struggling business to liquidate assets to repay creditors and involves the business closing its doors.
Chapter 7 bankruptcy protection is generally a liquidation bankruptcy protection option available to both struggling businesses and consumers that can provide debt relief and a fresh financial start. It affords many different protections to the filing party, be it a business or an individual consumer, including an automatic stay preventing creditors from going after the filing party during the bankruptcy process and a debt discharge of the filing party’s debt at the end of the process. Certain assets may also be exempted from the liquidation process.
Chapter 7 bankruptcy is an important protection for struggling businesses that have made the difficult decision to close and need some help with the debts of the business. Being familiar with how bankruptcy protections can help guide a struggling business through the process of closing its doors can be valuable information for struggling business owners to have.