Reed Law Firm, P.A. is a federally designated debt relief agency. We proudly help people file for bankruptcy relief under the U.S. Bankruptcy Code.
image description
Giving You Hope For a Debt-Free Future

SOUTH CAROLINA
BANKRUPTCY ATTORNEY

Company overseeing drywall contractors files for Chapter 7

A bankruptcy filing has closed the doors on a formerly prominent drywall company, according to local business news.  South Carolina contractors may be aware of Drywall Ltd., a company that formerly oversaw drywall contractors in another state.  The company has cited unmanageable debt as the primary reason for the Chapter 7 filing, which was filed on Sept. 15 at a federal Bankruptcy Court local to the business' head offices. 

The company lists only $19,000 in assets, along with two large trucks, which is surprising considering their former prominence.  In 2012, the company was clearing the $8 million mark in earned revenue from their fleet of contractors, and even in 2013 that number still comfortably exceeded $1 million.  While this definitely represents a downturn, there still appears to have been further challenges that have not been reported upon. 

The largest part of the company's debt is tax-related: $1.19 million of the total $4.8 million in liabilities is owed to the Internal Revenue Service. The other major parties who own Drywall's debts include a major bank, an insurance company and several credit card providers.  The company's Chapter 7 filing will likely lead to full liquidation of all the company's assets to help pay down creditors. 

In a case like this, where South Carolina residents will agree that a company's assets will not prove enough to pay off the existing debt, a Bankruptcy Court processing a Chapter 7 filing will likely focus on discharging much of the company's existing debt as part of the bankruptcy structure.  Should this be the case for Drywall Ltd., its owners may be able to shake off this financial hardship and move forward into the market unfettered.  The removal of this debt may give them the flexibility they need to start over. 

Source: bizjournals.com, "Drywall company files for chapter 7 bankuptcy", Eric Convey, Sept. 16, 2014

No Comments

Leave a comment
Comment Information

Contact Us

For more information or to schedule an appointment with an experienced lawyer regarding a bankruptcy filing, please contact us.

image description

COLUMBIA OFFICE
220 Stoneridge Drive,
Suite 301
Columbia, SC 29210
Phone: 803-807-2565
Fax: 803-726-4887
Email | Map & Directions

FLORENCE OFFICE
1807 West Evans Street,
Suite B
Florence, SC 29501
Phone: 843-679-0077
Fax: 843-679-0667
Email | Map & Directions

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

image description

Reed Law Firm, P.A.
220 Stoneridge Drive,
Suite 301

Columbia, SC 29210

Phone: 803-726-4888
Fax: 803-726-4887
Columbia Law Office Map

Reed Law Firm, P.A.
1807 West Evans Street,
Suite B

Florence, SC 29501

Phone: 843-679-0077
Fax: 843-679-0667
Florence Law Office Map

Reed office

‚Äč