In these difficult economic times, economic difficulties can hit anyone, individuals facing overwhelming debt, even Arizona companies struggling to keep their head above water. In fact, it may be even harder for companies to spring back from financial difficulties because they rely on customers to use their services, but customers are tightening their belts and budgeting themselves. Unfortunately, companies often have nowhere to turn.
It may be even more difficult for a non-profit company. One such example, the Arizona Contractors Association, a non-profit association, dedicated to providing economic development opportunities within the state and to help advance the construction industry. Established in 1956, it has now filed for Chapter 7 bankruptcy, to liquidate its assets. One of their office properties was also foreclosed upon, and they were unable to work out a deal with their creditors.
Though the decision to file for Chapter 7 bankruptcy may be a difficult one for Arizona residents, they may find, once they have made the decision, they feel lighter. This is because most of their bills have literally been wiped-out, as well as some of their taxes. In fact, Chapter 7 proceedings may even put an automatic stay on foreclosure proceedings, and it definitely puts an end to creditor harassment.
In the case of an individual filing for Chapter 7, debtors may also be able to retain ownership of their residential home and some furniture, if it is within a certain financial limit. As a result, people can restart their financial lives without losing everything. Before filing, however, it is important to ensure that Arizona residents meet the income requirements of Chapter 7.
Source: A.Z. Central, "Arizona Contractors Association filed for bankruptcy," Catherine Reagor, May 2, 2014
