“LaNasa and his version of TSR are in dire financial straits, if the court documents paint the full picture of the company’s assets – it has amassed $621.92 since the beginning of 2023. Level that sum against the full legal liabilities, which include payment owed to LaNasa when he acted as dubious legal counsel for the upstart publisher, currently totaled at $384,941.99.“
It’s a Chapter 7, versus chapter 11, bankruptcy. “Chapter 7 bankruptcy is sometimes called “liquidation” bankruptcy. Businesses going through this type of bankruptcy are past the stage of reorganization and must sell off assets to pay their creditors. The process works much the same for individuals.“
The bankruptcy court will appoint a trustee to ensure that creditors are paid off in the right order, following the rules of “absolute priority.”
Secured debt takes precedence over unsecured debt in bankruptcy and is first in line to be paid off. Loans issued by banks or other financial institutions that are secured by a specific asset, such as a building or a piece of expensive machinery, are examples of secured debt. Whatever assets and cash remain after all the secured creditors have been paid are pooled together and distributed to creditors with unsecured debt. Those would include bondholders and shareholders with preferred stock.
To qualify for Chapter 7 bankruptcy, the debtor can be a corporation, a small business, or an individual. Individuals are also eligible for another form of bankruptcy, Chapter 13, in which the debtor agrees to repay at least a portion of their debts over a three- to five-year period under court supervision.
Here’s a comprehensive history of LaNasa & Co’s legal issues with TSR, WOTC, etc, ad infinitum.