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Florida health care company files for Chapter 7 bankruptcy

Chapter 7 bankruptcy is an option for both businesses and individuals seeking to liquidate assets to repay creditors and enjoy a fresh financial future. A health company in Florida is filing for Chapter 7 bankruptcy after closing. In addition, 11 subsidiaries of the company also recently filed for Chapter 7 bankruptcy. The company provides home care products and is seeking to liquidate remaining assets through the Chapter 7 bankruptcy process.

The company ceased doing business with between 10,000 and 25,000 creditors and estimated assets and liabilities at between $50 to $100 million. The home care products company had both Medicare and Medicaid contracts in Florida. The company did not have enough cash flow to continue operating and was unable to secure additional funds to establish cash flows that would allow them to continue operating.

The company's board of directors determined that Chapter 7 liquidation bankruptcy was in the best interests of all parties involved, though employees have expressed concerns and concerns have also been expressed on behalf of creditors. The Chapter 7 bankruptcy process will now proceed with the assignment of a trustee and the review of company's financial circumstances.

The Chapter 7 bankruptcy process is available to businesses and individuals to allow them to liquidate assets (non-exempt assets in the case of an individual Chapter 7 bankruptcy) to repay creditors and eliminate debt. Because the process involves requirements to file, timelines and deadlines, as well as certain procedures and obligations, it is important that businesses and individuals considering filing for Chapter 7 bankruptcy are familiar with, and educated concerning, bankruptcy options which can help them enjoy a fresh financial start.

Source: Sun Sentinal, "Univita files for Chapter 7 bankruptcy," Donna Gehrke-White, Aug. 31, 2015

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