The owners of Avenue Bar in downtown Santa Cruz have announced that they have filed for Chapter 11 reorganization bankruptcy for their business. The couple that owns the bar originally filed for Chapter 13 reorganization bankruptcy in order to stop the foreclosure of the bar, but the amount of debt between the two exceeded the limit for that type of filing.

The couple owed more than $2.2 million for loans that were taken out for their business and their residence. Other loans were taken out for credit card bills and medical costs.

A few major creditors include First Horizon, Valley Community Bank, and an investor named Calvin Lee Jr. According to bankruptcy filings, the Avenue Bar generates $360,000 a year. 

If you or a loved one has been struggling financially with your business, contact the Arizona Chapter 11 bankruptcy lawyers of the Harmon Law Office, LLC by calling 480-829-0494 today.