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Nonprofit lists 130 creditors in Chapter 7 bankruptcy claim Atlanta, GA

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Nonprofit lists 130 creditors in Chapter 7 bankruptcy claim

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There are a lot of expenses that come with running a business. However, the hope is typically that money coming into the business not only pays for these expenses, but there is also a profit to be made.

However, while this may be the goal and plan for many people in Georgia who start their own business, there are cases where the owners are unable to pay back their creditors. Soon they find themselves falling deeper and deeper into debt.

A recent Chapter 7 bankruptcy case involving Safe Haven Animal Sanctuary highlights this point.

The nonprofit organization shut its doors for business at the end of 2013. Owing somewhere between $1 million and $10 million in debt, the animal sanctuary chose to file for Chapter 7 bankruptcy protection.

In the case of Safe Haven Animal Sanctuary, the nonprofit simply owed more than it was able to pay. In the bankruptcy filing, the Internal Revenue Service, veterinarians and a county bank are just some of the 130 creditors listed. At this point, all of the creditors have been made aware of the animal sanctuary’s bankruptcy filing. One creditor, in the light of the bankruptcy claim, has even said he anticipates not receiving money from the sanctuary.

Prior to the bankruptcy filing, a sheriff’s sale of the nonprofit’s equipment and furnishings had been set. However, this sale was cancelled after the sanctuary filed for Chapter 7.

In general, Chapter 7 bankruptcy is a tool both businesses and individuals can use when looking for a fresh start. Not only can it put an end to creditor harassment, but it can also stop someone from going further and further into debt.

Source: Sussex Countian, “Safe Haven Animal Sanctuary files for Chapter 7 bankruptcy,” Sarah Lake Rayne, Feb. 4, 2014

Posted on behalf of Jamie L. Gingold, PC

195 14th Street NE #1604
Atlanta, GA 30309

Phone: (678) 915-2634


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