A man seeking to open a seafood operation on the Port Royal docks in Florida may still owe money from two previous businesses. The man reportedly has two separate seafood brokerages, both of which filed for bankruptcy. A shrimper from Florida claims that the man still owes her money from both companies. The officials at Port Royal are reportedly investigating these claims and other allegations before the approval of the seafood operation. Court filings can be used to check on any bankruptcies and foreclosures that may have been filed.
The seafood operation owner claims that his first business went bankrupt due to the effects of Hurricane Alberto and that the second business went bankrupt due to the actions of shrimpers that were allegedly selling his son inferior products. He filed for personal bankruptcy to clear the debts of the second business because it was easier than filing for a corporate bankruptcy. The local shrimper who contacted the port alleges that both companies still owe her a total of about $36,000 and the bankruptcy petition stated that balances were owed on up to 49 creditors.
The owner of the seafood operation had initially filed for Chapter 11 bankruptcy for his company, but this was changed to Chapter 7 bankruptcy after an investigation by the trustee. The trustee reported that the company was not profitable and that assets were disappearing from the company.
Chapter 13 and Chapter 11 bankruptcy allow the restructuring of debts, and Chapter 7 bankruptcy requires the liquidation of assets to dissolve debts. Filing for bankruptcy is a complex legal process that may be made easier with the aid of a bankruptcy and foreclosure attorney. An attorney could help a business owner or individual decide which type of bankruptcy is best for their situation.
Source: Islandpacket, “Bankruptcy filings, nonpayment claims temper port royal officials’ enthusiasm for shrimp dock deal”, Erin Moody, June 01, 2013