When Louisiana businesses and other corporate entities find themselves facing significant debt, sometimes a financial reorganization is in order. In some cases, this can be accomplished by filing Chapter 11 bankruptcy. Knowing the legal options available is key to keeping a corporation up and running. Mount Calvary Pentecostal Church recently made the move to file for Chapter 11 bankruptcy to insure that their church stood firm in spite of financial difficulties.
According to reports, the church was in severe financial distress. The filing indicated the church had between 1 and 49 creditors. It also revealed that the church’s debts reached over $1.8 million, with $1.7 million of the total owed to a single creditor. Church officials have stated that while the church has put up $175,000 collateral, it does not intend to sell any of its properties to pay off the debt.
Mount Calvary representatives claim that the primary reason they decided to file for Chapter 11 bankruptcy was so that they could continue to function normally as a church while restructuring their finances. This filing will allow the church to pay their creditors over a specific length of time as decided by a bankruptcy court. No specific repayment period has been established yet, but those involved are hoping to resolve the matter as swiftly as possible.
Business and corporation owners who are concerned about financial stability should be aware of all options available to them. An experienced Louisiana bankruptcy attorney can asses an owner’s situation and help decide whether filing for Chapter 11 bankruptcy is the right choice. In addition, a lawyer can also provide advice and support throughout the filing process.
Source: vindy.com, “Youngstown news, Mount Calvary seeks Chapter 11 bankruptcy protection from creditors”, Jordyn Grzelewski and Justin Wier, Feb. 23, 2017