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Fisker Automotive on the Verge of Filing for Bankruptcy

Fisker Automotive on the Verge of Filing for Bankruptcy

Posted By Marshall Schultz || 29-May-2013

According to recent reports, it appears as though plug-in, hybrid giant, Fisker Automotive, may be on the verge of filing for bankruptcy. Sources show the primary issue Fisker is facing is that it still owes the U.S. Department of Energy $172 million dollars. Fisker originally took the loan so the company could recommission a portion of an old GM plant, however various setbacks have left Fisker unable to continue production, and thus unable to repay the loan. While the company has made efforts to find new investors, as of now, none have been secured. In order for Fisker to sell off its assets, considering the Dept. of Energy holds the lien on the majority of Fisker's assets, their only option is to file for bankruptcy protection and have the assets sold at auction. The Dept. of Energy would then receive the majority of the proceeds.

There are numerous circumstances which could lead to an individual, or business to seek bankruptcy protection. For an individual, a few of the most common reasons you may find yourself facing bankruptcy are a divorce, unexpected medical expenses, overextended credit, a crash in the housing market, or other similar situations. One of the primary reasons a business may be forced to file for bankruptcy is that their income is insufficient to repay the debt they have incurred. This is often due to the fact that as a business is expanding, the owners may feel the need to "jumpstart" that expansion by taking out a large loan. The problem with that comes when the business' sales are insufficient to begin repaying the loan. Many turn to bankruptcy protection in order to restructure their debts, sell off their assets in order to downsize, or execute a complete dissolution of the business itself.

Do you need a bankruptcy attorney to help with your financial situation? We strongly advise you contact the Law Offices of Marshall D. Schultz to speak with one of our knowledgeable bankruptcy attorneys today. Our firm has more than 33 years combined experience and we have filed over 10,000 bankruptcy cases. We know how the bankruptcy process works and we are dedicated to providing you with the personalized attention, and aggressive representation, you need to help you alleviate your financial stress and get your financial life back on track.

To find out if bankruptcy may be right for you, contact a Detroit bankruptcy lawyer and schedule your free consultation.

Categories: Bankruptcy, Debt, Loan

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