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Government cuts causes bankruptcy

Many companies, counties, cities and health care facilities are facing financial problems or difficulties today. As a result, they have no other option than to file for bankruptcy. A New York City health care company, Sound Shoue Systems Inc., recently filed for bankruptcy under Chapter 11 protection as reported by Thomson Reuters News and Insight in a May 31, 2013 article.

Sound Shore Systems In.c offers services through its medical center, Mount Vernon Hospital Inc., a nursing home and an extended care facility and it brought tin revenue about close to two hundred and forty million dollars last year. However, the health care company alleged that it had no option other than to file for bankruptcy because the reduction in government funding in Medicare and Medicaid. As a result, the company’s liabilities are greater than its assets, which means that its debt outweighs the current financial value of the company. Presently, the debt of the company outweighs the assets of the company by about forty million dollars. Thus, in order to pay off its creditor and its debts, the company is thinking about selling its company to Montefiore Medical Center for an estimated price of about fifty four million dollars.

Sound Shore Systems Inc. is not the only health care facility that is facing financial problems due tot he reduction in government funding. KidsPeace Corp of Pennsylvania also faces financial problems and it blames the reduction in Medicaid funding by the government thus it also filed for bankruptcy under Chapter 11.

If you are interested in filing a personal bankruptcy, then you should speak with a qualified attorney. Mr. Lutzky of Jayson Lutzky, P.C. is a Bronx, New York lawyer with 30 years of experience. He handles bankruptcies and offers free in person consultations. Call his office at 718-329-9500 to learn more or visit www.MyNewYorkCityLawyer.com.

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