Many Maryland hockey fans are familiar with Jack Johnson, a defenseman in the National Hockey League. Johnson has made recent headline not for his skills on the ice, but over what has become a very contentious consumer bankruptcy filing. Most recently, Johnson is trying to convert his Chapter 11 filing into a Chapter 7 case, in the hopes of eliminating a large portion of his debt through liquidation, rather than repayment.
Filing for bankruptcy is never a joyous occasion, but business owners should avoid thinking of the matter as an indication of failure. In fact, research conducted by the U.S. Small Business Association revealed that many businesses with fewer than 500 employees emerged from bankruptcy to find new levels of success in the years to follow. Maryland businesses in Chapter 11 are often able to fare far better in the years after a bankruptcy than they did in the years that preceded that action.