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SOUTH CAROLINA
BANKRUPTCY ATTORNEY

Mental health facility files for Chapter 7

A nonprofit organization dedicated to improving mental health has filed for bankruptcy. The organization, which North Carolina residents understand represents an important tool in the ongoing work to improve mental health literacy and support, closed its doors three years ago. However, the company has entered Chapter 7 bankruptcy since it has been unable to pay its outstanding debts thus far.

Between 2006 and 2011, the organization served its local area in the field of family counseling for those suffering from substance abuse, as well as other mental health services. These services stopped being offered as of 2010, but the company kept its doors open for some time longer in order to transfer patient records to other health care facilities. By 2011, the company had closed its doors for good.

The bankruptcy petition indicates the company has less than $30,000 in assets against some $200,000 in debt, including unpaid ages, business expenses and bank debt. The petition was signed by a former member of the organization's Community Development Corps., and the case is currently being overseen by a bankruptcy court. It is hoped that the filing will be successful in helping the organization pay down its existing debts.

The importance of mental health services in a community cannot be overstated, as South Carolina residents will no doubt agree. However, even the most well-intentioned businesses must comply with the day-to-day realities of business finance. Chapter 7 bankruptcy is one way in which a business owner or owners can address outstanding debt and help to pay it down without sacrificing their personal financial security. While the assets will be marshalled and liquidated for the benefit of existing creditor, the executives will be able to focus on future business investments going forward.

Source: bizjournals.com, "Mental health nonprofit, in bankruptcy, owes DHHS $2 million", Dawn Kurry, April 28, 2014

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