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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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can a private club that is having financial trouble file for

Customer Question

can a private club that is having financial trouble file for bankruptcy to get the bank to lower its payments or restructure the loan. the bank is the only creditor we have. we are also making cuts in expenses that will allow us to continue to operate if we can get a break from the bank. the bank is not willing to lower the enough for us to continue to operate the club.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
When a business files a Bankruptcy, its debts are not automatically discharged. A majority of the business' creditors must approve the re-organization plan. If your business has only one creditor, and that creditor will not work with you now, there is no guarantee they will work with you (and they do not have to) if you file a Bankruptcy for your business.

I think this is what you wanted to know. If not, please let me know.
Thank you.