Phones Answered 24 Hours A Day Call 724-799-8404
Thompson Law Group, P.C.
Experienced Lawyers on Your Side
Menu / Navigate
Secondary Nav

Chapter 11 bankrupcty helps avoid foreclosure

At one time or another, many Pennsylvania businesses will suffer as a result of the changing economy. While many of these organizations will be able to quickly recover, some will not. For those unable to recover, decisions will need to be made. The company can either go out of business or can possible file for bankruptcy and attempt to restructure into a more profitable entity. When the second option is chosen, Chapter 11 bankruptcy may be the best option.

Chapter 11 bankruptcy allows the company to continue operating. However, during the bankruptcy process, creditors are put on hold in anticipation of the company restructuring. During this process, the company submits plans to restructure its debt so that it can once again become a profitable entity.

North Philadelphia Health System has recently filed for Chapter 11 bankruptcy protection. Reports indicate that it currently owes almost $25 million in unsecured debt. Additionally, it owes almost $2 million in secured debt. The health system determined that it would be unable to make its $400,000 payment on its mortgage. In an attempt to prevent foreclosure proceedings, the company decided that bankruptcy reorganization would be in its best interest.

With Chapter 11 bankruptcy, the Pennsylvania company provides its plan to restructure its debt. Within this plan, secured debts are addressed first; debt owed for taxes generally receive primary consideration. Next, employee wages and interest owed to stockholders are addressed. Other secured debts are next on the list, and finally unsecured debts are considered. Companies who find themselves in financial turmoil may find it beneficial to discuss the benefits of Chapter 11 bankruptcy with experienced legal counsel.

Source:, "North Philadelphia Health System enters bankruptcy", Harold Brubaker, Jan. 4, 2017

No Comments

Leave a comment
Comment Information

Warrendale Office
Main Office
125 Warrendale-Bayne Road
Suite 200
Warrendale, PA 15086

Phone: 724-799-8404
Map & Directions

Greensburg Office
101 North Main Street, Suite 104-A
Greenburg, PA 15601

Phone: 724-799-8404
Map & Directions

Pittsburgh Office
Downtown Pittsburgh
555 Grant Street, Suite 331
Pittsburgh, PA 15219

Phone: 724-799-8404
Map & Directions

Canonsburg Office
Satellite Office
2400 Ansys Drive
Canonsburg, PA 15317

Phone: 724-799-8404
Map & Directions

Monroeville/Wilkins Township Office
Satellite Office
400 Penn Center Boulevard, Suite 101
Pittsburgh, PA 15235

Phone: 724-799-8404
Map & Directions

[an error occurred while processing this directive]