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Common Sense Media files for Chapter 7 bankruptcy

The business world can be highly profitable and lucrative if one is savvy and makes the right decisions. However, every entrepreneur in Texas and elsewhere that goes into business will take on a certain amount of risk, depending upon the type of business. There are a variety of factors which could cause a business to hit hard times. Unfortunately, one online advertising business recently found this out when it was forced to file for a Chapter 7 bankruptcy.

Common Sense Media petitioned for bankruptcy protection in early March, planning for liquidation of its assets due to overwhelming debt. The petition listed various well-known news websites and other media outlets. Nearly 50 creditors were listed in the bankruptcy petition. The company's publisher and its managing director were also listed as creditors in the bankruptcy petition as well.

The bankruptcy trustee in charge of the case has met with the publisher and a creditor's meeting is planned for early April. The trustee is responsible for determining which assets the company possesses in order to see if it is possible for the company to make payments to its creditors. Common Sense Media had approximately $8,500 in the bank and $17,000 in receivables for services rendered, according to a statement made by the trustee.

Filing a Chapter 7 bankruptcy in Texas or any other state will allow a company to liquidate all of its assets, while also discharging its unsecured debts. This allows the business owner to move on to the next chapter of his or her life in order to pursue the next entrepreneurial venture. However, it is important for a petitioner to properly fill out the necessary legal paperwork to ensure the bankruptcy proceedings are handled properly under applicable state and federal laws.

Source: Huffington Post, "CommonSense Media Files For Bankruptcy," Michael Calderone, March 27, 2013

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