Bankruptcy for Hotels and Hospitality
Tampa Chapter 11 Attorney
There are many hotels and motels, as well as others in the hospitality business that are dealing with too many expenses and not enough business to meet the financial demands. Many people are putting their vacations on hold out of worry over the uncertain economy or the loss of their job. For businesses that are struggling to stay afloat and are no longer able to meet their financial obligations, Chapter 11 bankruptcy can provide a significant means of assistance. A hotel can file for Chapter 7 or Chapter 11 with the federal court and the severity of their needs should be assessed. For those that choose to file for Chapter 11, this is a form that can be used by those hotels that are looking to restructure and make it through this tough time.
The Benefits of Chapter 11 Bankruptcy
There are many benefits for a business that is filing under this form. One of the main ones is that when considered a "debtor in possession," often times the business is still able to operate. While the court will be involved, the owner can remain in control of it for the most part. Chapter 11 will also allow for a business to restructure their finances, so that their ongoing payments are reduced to a more feasible amount and the terms of their payments are modified. It may also be more profitable for the business to downsize to make it through this obstacle and assets can be sold through this type of bankruptcy. When restructuring the company, it may be necessary to close some offices or make layoffs, in an effort to come out ahead at the end of the process. Some hotels have also found that the economy is not strong enough for them to run a business under, nor is it worth the stress, and through Chapter 11 they can seek liquidation and move on to the next phase with as little debt as possible.
Who is eligible to file?
Unlike Chapter 7 bankruptcy, there is no means test that will need to be passed in order to be eligible to file. Individuals are able to file through Chapter 11, but it is most often used by businesses. A corporation, partnership or a sole proprietorship can use this means if their company is no longer profiting or they are dealing with costs that outweigh their income. It is important to have the circumstances reviewed by a professional that can better determine if it is the best route to take. If a bankruptcy filing is not handled correctly then it can potentially decrease the level of benefits and even potentially harm the business.
A Tampa bankruptcy attorney will have a firm grasp on these cases and know what to assess for. They can not only determine which type of bankruptcy is the best choice but they can help with filing and developing a plan to optimize the results. The Law Offices of Buddy D. Ford, P.A. represent more than 50 hotels and motels, including a number of widely recognized companies. They are able to negotiate the terms with lenders, develop the restructuring and allow for their clients business to prosper though this difficult time. Since 1987, the firm has been committed to representing clients with dignity and finding the best possible solution available.
How can the Law Offices of Buddy D. Ford, P.A. help?
In these uncertain economic times, travel is a luxury that has been cut out of most households, budgets as disposable income evaporated, opting instead of "staycations" and day trips. Therefore, the hotel/motel hospitality industry as felt the brunt of the downturn in economy. Even with recent slight improvement of the economy, the rebound effect is likely to hit the hospitality industry very slowly over the coming years.
Buddy D. Ford, P.A. was introduced to this niche market in 2010. The firm has had outstanding success in negotiating terms with lenders and reorganizing the debt of hotels/motels through Chapter 11 Bankruptcy, allowing the entities to survive and flourish. The mutual respect and working relationship between Buddy D. Ford, P.A. and creditors counsel permits strong discussion and resolution of terms.
In some instances, the principles of the entities did not desire to continue operating due to the insurmountable financial burden and stress of the industry. Buddy D. Ford, P.A. has guided such entities through liquidating Chapter 11 bankruptcy, with a strong exit strategy. Some creditors have even agreed to not pursue personal loan guarantees against the principles.
Buddy D. Ford, P.A. represents over 50 hotels/motels, including but not limited to the following:
- Comfort Inn & Suites Of Jacksonville, Fl
- Holiday Inn & Suites Of Seabring, Fl
- Hampton Inn Of Jacksonville, Fl
- Four Points By Sheraton In Jacksonville, Fl
- Budget Inn Of Bradenton, Fl
- Holiday Inn Express Of Brooksville, Fl
- Holiday Inn Of Jacksonville, Fl
- Candlewood Suites Of Jacksonville, Fl
- Royal Inn Of Lake Wales, Fl
- Quality Inn Of Davenport, Fl
- Holiday Inn Express Of Tavares, Fl
- Days Inn Of St. Augustine, Fl
- Holiday Inn Express, Perry, Fl
- Country Inn & Suites Of St. Augustine, Fl
- Super 8 Motel Of St Augustine, Fl
- Baymont Suites Of St Augustine, Fl
- Microtel & Suites Jacksonville, Fl
- Comfort Suites Of Palm Bay, Fl
- Best Western Of Mayport, Fl
- Red Roof Inn Of Kississimee, Fl
- Americas Best Value Inn Of Clearwater, Fl
- Gulf Towers Resort Motel Of Indian Rocks Beach, Fl
- Jefferson Motel Of Treasure Island, Fl
- Best Western Plus Of Kingsland, Ga
- Howard Johnson Of New Port Richey, Fl
- Hampton Inn Of West Melbourne, Fl
- Royal Inn & Suites Of Sanford, Fl
- Holiday Inn Express Of Jacksonville Beach, Fl
- Lake Tarpon Resort
- Holiday Inn Express Of Port St. Lucie, Fl
- Holiday Inn Express Of Port Richey, Fl
- Comfort Inn Of Orange Park, Fl