As most Florida readers likely know, becoming underwater in debt is an all-too-common, unfortunate situation. Even though the economy has improved in recent years, many consumers and businesses are still fighting their way out of debt. One of the most challenging aspects of debt for many is facing foreclosure -- if they are unable to meet their mortgage, loan or other payments successfully. For one large Florida nursery, their journey to debt elimination included foreclosure alternatives that may be an option for other Florida businesses.
According to a recent report, Exotic Collectors Nursery was facing almost $4 million in debt, much of which was accumulated from a South Florida Federal Land Bank Association. Foreclosure was filed against the nursery in 2011. While many businesses may attempt to consolidate debt or simply allow the foreclosure to proceed, Exotic Collectors decided to utilize a specially designated form of bankruptcy to reorganize their debt.
Chapter 12 bankruptcy has a higher ceiling for debt than other forms of bankruptcy, and is designed for businesses specializing in farming or fishing. For Exotic Collectors, this bankruptcy filing could be the catalyst to ending several years of foreclosure fears and helping them get back on the right track. In recent years, the nursery has sold other properties in order to pay down debt. Additionally, revenue for the nursery has improved over last year, which is a hopeful sign for the business and its owners.
Filing for bankruptcy may not always be the most ideal solution for all Florida businesses. Fortunately, businesses can investigate many foreclosure alternatives that could provide relief. Any business facing foreclosure may benefit from seeking the assistance of a team of support that is experienced in Florida real estate, foreclosure and business matters. The road to avoiding foreclosure can be complex, but it also can be successful.
Source: South Florida Business Journal, Big plant nursery files bankruptcy to halt foreclosure, Brian Bandell, Dec. 18, 2013