Baltimore Behavioral Health (BBH) has filed for Chapter 11 bankruptcy according to the Baltimore Sun.
The Sun reports that the mental health rehabilitation and addiction treatment center filed for bankruptcy protection because it owes more than $5.5 million to creditors and estimates its assets are less than $500,000.
The paper said that the BBH would continue to operate during the bankruptcy. “There’s a need for us to be here,” CEO Terry T. Brown said, according to the Sun.
The bankruptcy follows a series of problems for the treatment center, including a lawsuit by employees over retirement contributions, the dismissal of several members of the board of directors and several accusations of default, according to the Sun.
Brown told the paper that the company removed prior directors responsible for financial mismanagement. The Sun reported in the past year, BBH also cut payroll from $5.8 million to $2 million, reducing staff from about 200 members to fewer than 60.
Much like a Chapter 11 bankruptcy, Chapter 13 and Chapter 7 bankruptcies can help people stop collections and foreclosures, and restructure debt.
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.