Phoenix, AZ -- (SBWIRE) -- 05/12/2014 -- Arizona Contractors Association (former a Phoenix-based industry group) which was founded in 1956 recently filed Chapter 7 Bankruptcy on April 24 of this year to liquidate assets.
Court records revealed the $500,000 to $1,000,000 in debt of assets of Arizona Contractors Association. In 2013, they lost its office condominium in midtown Phoenix to foreclosure paired with a lawsuit amounting to approximately $500,000 lawsuit by their lender for their deficiency. The case is still in pending status in Maricopa County Superior Court.
Reasons Why Companies and Organizations File for Bankruptcy
Insolvency. Companies who have enough valuable assets but do not have enough liquidity (lack of enough cash to operate) would be forced to file bankruptcy. Getting relief from creditors in order to resolve cash flow problems sometimes become the best resort for companies based on legal advice.
More Liabilities Than Assets. Sometimes, even if the company’s cash flow can suffice, legal counsel would advice businesses to file bankruptcy if their liabilities exceed their assets. Companies applying for bankruptcy because of this reason often anticipate to receive a restricting of their debts and discharging as much as possible which is reliant on how both parties (creditors and debtors) cooperate making this option innately risky.
Lack of a Strategic Reorganization. Based on previous bankruptcy stories, there is a number of large American airlines who filed for bankruptcy because of their inability to compete with competitors. Companies who had gone through the same experience did not necessarily have cash flow or insolvency issues, but rather they deemed to file bankruptcy with the fear of losing their market share to their competitors if they failed to change their debt structure. For this specific reason, it is crucial to have the cooperation of creditors in order to succeed in the bankruptcy case.
In Phoenix and Scottsdale, Arizona, the Juras Law Firm, PLC which aides businesses going through financial difficulties and are in the brink of filing bankruptcy. Their bankruptcy lawyers carefully evaluate the financial condition of their clients and determine whether bankruptcy is the right choice for them.
Deciding to file for bankruptcy can be a painful decision for businesses and organization owners. Anyone who finds himself in such a position with no other options should seek a legal advice from a trusted law firm to be presented with different options before proceeding filing for bankruptcy.
About Juras Law Firm, PLC
Juras Law Firm, PLC provides practical legal solutions to problems in the areas of Immigration Law, International Law, Bankruptcy Law and Business Law. They are an international law firm based in Phoenix, Arizona, and are dedicated to providing the highest quality of legal services. Their firm represents a diverse clientele: large corporations, small and medium-size businesses, start-up companies, entrepreneurs and individuals. They focus their practice on legal matters ranging from immigration to bankruptcy to international business law.