Midwest Meat Packing Facilities filed an involuntary Chapter 7 bankruptcy in the U.S. Bankruptcy Court this month, as reported by KearneyHub.com in a March 2nd, 2013 news article.

The petition revealed that the meat packing company had $4.43 million in debt this number included both secured and unsecured debt. However, the company listed their current assets value to be $2.5 million. Upon filing for bankruptcy the company closed operations at their processing plant, yet they still had product to sell.

The processing plant was most likely closed because the bankruptcy was involuntary. An involuntary bankruptcy occurs when a creditor can demonstrate to the court that the party owes them a significant amount that the party will not pay. In the present matter, the meat packing company failed to pay Shinn’s Turkey Track $1.45 million for supplies.

The attorney for the meat packing company is requesting that the bankruptcy be changed to a voluntary Chapter 11 claim instead. Under this form of bankruptcy, the company would be allowed to continue operating while the trustee reviews the company’s assets. The courts are currently reviewing this request.

Jayson Lutzky has over 29 years of experience. If you are considering bankruptcy, then call us today at (800) 660-LAWYER (5299) to set up a free initial consultation. You can also visit us on the web at www.MyNewYorkCityLawyer.com.