On behalf of Law Offices of Mark M. Kratter, LLC on August 31, 2012
Some Connecticut small business owners may be struggling to remain profitable and open for business during the current economic recession. Fortunately, there are options available for people who are having difficulty keeping their businesses afloat due to the combination of a slow economy and a high debt load. Recently, the owner of a used car dealership has filed for Chapter 7 bankruptcy protection. He is claiming almost $2 million in debt and has cited the reason for filing as declining revenue over the past two years.
The company's largest outside debt is listed at $600,000. This amount is owed to an automotive auction company. In addition, the dealership owes $1 million to the dealership's president and its majority owner. The company also owes money to various other creditors within the automotive trade.
The dealership's revenue has slowly slid from year to year. In 2010, they listed revenue at $12.2 million. In 2011, their revenue slipped approximately $4 million. However, in 2012, they appeared to suffer their worst financial hit yet, only reporting $1.6 million in revenue to date. The company listed their assets as valuing less than $9,000.
This company appears to be one of many directly affected by the economic recession. Fortunately, they sought Chapter 7 bankruptcy protection. Filing for bankruptcy will help them discharge many of their debts so they can begin to manage their finances again; whether or not this company will close its doors has not been decided at this point. Connecticut business owners whose debts have grown to an insurmountable level may want to consider whether a similar bankruptcy filing can help them get back on their feet and back in business.
Source: Triangle Business Journal, "Car dealer files for bankruptcy," Chris Bagley, Aug. 17, 2012
