A dream project of Gov. L Douglas Wilder may finally get its chance to fulfill his vision once the financially strapped U.S. Slavery Museum gets approval of a proposed bankruptcy reorganization plan. The museum’s creditors are scheduled to enter their vote for the reorganization plan in June.
The U.S. Slavery Museum has struggled with insolvency for a few years and found itself $7 million in debt when it filed for Chapter 11 bankruptcy. It lost its non-tax status after failing to file federal taxes from 2007 to 2011 and also owes over $200,000 in local taxes.
The plan presented by the museum’s attorney Sandra Robinson is focused on reinstating the museum’s tax exempt status so they can resume its fundraising.
The main goal of a bankruptcy attorney is to help an insolvent business return to a healthier financial state by presenting a reorganization plan that will satisfy creditors while allowing the business to continue operations.
The museum’s largest creditor is the Pei Partnership Architects firm, which is owed $3.68 million for their designs even though the museum never broke ground.
Bankruptcy is sometimes the best route for a troubled business to take when faced with too much debt. An accomplished bankruptcy lawyer will be able to craft a plan that will allow the company to emerge in a better financial state. Before a business becomes too overwhelmed by their debt they should seek the advice of a bankruptcy attorney to detail their options.