HOSPITAL'S EQUIPMENT UP IN THE AIR AFTER CHAPTER 7 FILING

Facing overwhelming debt can be a challenging experience. When creditors start coming after you, it is easy to become frightened or intimidated. Fortunately, there are ways to slow down the process, allowing you decide the best way to move forward.

Recently, a hospital in another state halted a civil suit filed by its medical equipment provider last month by filing for bankruptcy. The hospital filed this Chapter 7 bankruptcy to stop the repossession of the medical equipment. The equipment financing company then filed a petition to seek relief by allowing them to repossess the equipment that is believed to be unused in the bankrupt hospital.

No one starts a business believing that it will go bankrupt, but this outcome is a real possibility. For businesses that are struggling with debt, this may be the only option. Bankruptcy can discharge debt, stop wage garnishment and provide debt relief. Chapter 7 is the most common and is arguably the easiest type of bankruptcy that there is. Businesses, individuals and married couples can all apply for Chapter 7 bankruptcy.

The equipment financing company originally filed a $2 million lawsuit against the hospital for money that was owed it after a deal made in 2007 to buy software and equipment. Now the company only wants to repossess their equipment so that they may sell it, and be compensated to some degree.

Although this situation is occurring in Texas, residents of Ohio may relate. People and businesses that fall on hard times in any state can file Chapter 7 bankruptcy. It is important to remember that bankruptcy is not a worst-case scenario but can be looked at as making the best choice in unfavorable times. People and businesses struggle in this economy daily, and many feel there is no way out. Bankruptcy can give you or your business a fresh financial start, and put you on the right track to a promising future.

Source: The Brownsville Herald, “Doctor’s Hospital equipment in limbo,” Mark Reagan, Jan. 20, 2014