Many hardworking Americans are struggling with debt in the current recession, and while there are strong indicators that the economy is getting healthier, paying the bills remains a struggle for many. That’s why a Chapter 7 or Chapter 13 bankruptcy could be the best choice for Wisconsin residents who need to discharge unsecured debt or reorganize their financial circumstances.
Those who are concerned that bankruptcy is somehow embarrassing need not worry. Not only do many individuals file for bankruptcy, but many businesses (even large ones) do as well. For example, the biomass producer Big Island Carbon LLC recently filed for Chapter 7 bankruptcy.
The company has reportedly spent about $50 million building a biomass plant to turn the shells from macadamia nuts into activated carbon filed for bankruptcy, and has not yet begun any commercial operations at its plant. The company laid off all 25 of its employees, including its CEO, COO and controller.
An operating partner for the project’s majority owner and secured lender said the project ran out of funding after its original projected budget of $20 million mushroomed to $50 million. The board of directors were still searching for new investors but decided to file for bankruptcy in the interim.
This story serves as a reminder that anyone can find oneself at the mercy of growing debt; sometimes bankruptcy is the best course of action to ensure future success and financial stability.
Source: Pacific Business News, “Biomass producer Big Island Carbon files Chapter 7 bankruptcy,” Janis L. Magin, Nov. 27, 2012