Even media companies are significantly suffering financially. According to a March 27, 2013 Huffington Post article CommonSense Media filed for a Chapter 7 bankruptcy. The company, located in Washington D.C. petitioned the courts seeking to liquidate its assets.
The media company, originally founded in 2007, works to publish and advertise via digital media. The media company focused on advertising for political campaigns. In the petition the companyâ€™s listed 48 creditors many of which were well established news and blogs sites. The Chapter 7 petition was signed into effect on March 29th, 2013. There were no comments regarding the companyâ€™s assets or the process of liquidation that will be used by the trustee.
Although allowed, it is rare for a business to file a Chapter 7 many times a business will look to a Chapter 13 or Chapter 11 protection. In general, individuals generally choose Chapter 7 to clear their debt in one process. Under Chapter 7, a trustee will review all of the assets listed by the petitioner and sell them off. The funds collected from the sale will then be given to the petitionerâ€™s creditors. Once all of the assets have been sold and the petitionerâ€™s debt is considered satisfied, then the creditors will be unable to collect on the debt. Depending on the circumstances and details of the petitionerâ€™s case the bankruptcy process normally takes around four months.
If you are considering bankruptcy, contact the law office of Jayson Lutzky. Mr. Lutzky has over 29 years of experience practicing law. To set up a free in-person consultation, call 718-329-9500. You may also visit our website,Â www.MyNewYorkCityLawyer.com, for more information.