Owning a business is often a rewarding experience, but it can also be financially challenging. In many cases, small businesses struggle to keep up with the financial demands, and it is not unusual for substantial debt to accumulate. Some struggling Louisiana businesses may even turn to bankruptcy for debt relief.
This type of situation recently affected a company in another state. Reports indicated that the owners of a bakery closed their two locations due to financial issues. The company has less than $50,000 in assets, and the Internal Revenue Service is listed as one of the creditors with a $68,000 federal tax lien. It was noted that the bakery’s debts land between $50,000 to $100,000. In addition to the business bankruptcy, the owners have also opted for personal bankruptcy.
On top of the outstanding liabilities, the company also faces issues with disgruntled customers. A number of couples had reportedly paid deposits to have wedding cakes made by the business and were not informed that the locations had closed. As a result, they are seeking refunds. It was also reported that employees of the company claim to have not been paid and that wage and hour claims have been filed against the bakery.
Financial issues can quickly snowball into serious complications for businesses and individuals. If Louisiana companies are struggling, they may want to look into their bankruptcy options. Gaining reliable information on this debt relief avenue could help them understand whether it may benefit their predicaments and determine what steps they may need to take to get started.