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Owner of printing business files for Chapter 13 bankruptcy

It became all-too-common for businesses to struggle for survival during the recent recession. Many larger corporations were able to weather the storm in Texas and elsewhere; however, the recession was significantly more challenging for smaller businesses. Many of these small companies were forced out of business by the slow economy. The owner of a printing business blamed the recession as well as other factors for forcing him to file a Chapter 13 bankruptcy recently.

The businessman's printing company had been in business for approximately three decades before he petitioned for bankruptcy. The company, which was called CBFS Inc., had been renting two Xerox machines as an integral part of its operations. In spring 2010, the company renewed the leases on the machines for another four years. The firm had also leased a third machine for five years.

The company's owner believes that the recession, as well as one of his largest clients requiring less printing services, played a large role in the downfall of his business. His large client had decided to shift its focus to utilizing more digital services, which decreased the client's need for printing services. One of the last nails in the coffin came when Xerox began leasing machines to his largest account.

The company's gross income dropped from $600,000 to less than $500,000 from 2007 to 2008. Documents filed for his bankruptcy petition showed that his 2009 gross business income had further declined to $255,736. Then, in 2010, the company's income dropped to $189,803 and then again to $143,073 the next year. In late December of 2011, the man decided to file for Chapter 13 bankruptcy, which allows a person in Texas or elsewhere to reorganize debts into a more manageable payment schedule. This can help a business owner move forward to achieve greater financial success after going through a period of reorganization.

Source: Burbank Leader, "Burbank City Council candidate says bankruptcy was a 'business decision'," Alene Tchekmedyian, Dec. 26, 2012

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