When small business owners in Maryland and across the country begin to experience financial hardships, they might have concerns regarding the future of their companies. Should these issues persist, some could have trouble keeping up with monetary obligations, potentially prompting a need for relief. A home health care company in another state has recently filed for Chapter 11 bankruptcy, and is reportedly attempting to remain operational through financial reorganization.
According to reports, the company provides home health care to individuals with severe cardiac conditions following their release from the hospital. The company claims that recent financial troubles, some of which revolve around billing, have led to the decision to file for bankruptcy. It also asserts that its debt liabilities range anywhere from $500,001 to $1 million, while its assets are below $500,000.
By filing Chapter 11 bankruptcy, a business may be able to remain operational while paying a certain amount of debts over a given period. The company reportedly wishes to continue to care for the patients who need the treatment it provides. It recently received the approval of the bankruptcy court to continue to meet payroll obligations, as well as the authority to use funds collected through Medicare and Medicaid.
When a small business experiences similar circumstances, owners may wish to form a plan for reorganization and continue operations, but the process can be complex. Owners who face similar circumstances could speak with an experienced attorney for advice on the available options for relief. A bankruptcy attorney in Maryland can address a client’s concerns and needs and assist in pursuing the most favorable outcome possible regarding the future of his or her company.
Source: richmond.com, “Chesterfield-based cardiac health care business files for Chapter 11 bankruptcy”, Katie O’Connor, Oct. 18, 2017