The Huggins Law Firm, PA
Call to Schedule a Free Consultation
Columbia 803-764-1558 Charleston 843-509-0039

Chapter 7 petition filed by HealthSpot

According to court documents, health kiosk company HealthSpot has filed for Chapter 7 bankruptcy, under which the company's assets will be liquidated in order to pay its creditors. The move came after reports that the company would be closing.

The company had revenues of $1.1 million over the last three years. The company reported that the assets held by it totaled $5.2 million with debts owed totaling $23.3 million. The company placed enclosed kiosks in various retail locations. People could go into the HealthSpot kiosks and speak privately with remote doctors in real time. The kiosks also had certain medical devices, like weight scales, blood pressure cuffs and others so doctors could get needed baseline information about the patients.

Of the liabilities Healthspot has, $10 million is owed to Cox Communications and $6 million is owed to Xerox. With Chapter 7 bankruptcy, the company will be able to settle its debts for much less than the balance if the discharge is approved by the bankruptcy court.

Chapter 7 bankruptcy is often employed by individuals as well. When a person files a Chapter 7 bankruptcy petition, the court issues an automatic stay which enjoins creditors from engaging in further collections activities. People are able to exempt certain categories of property from inclusion in the bankruptcy estate, meaning they will not have to liquidate everything. At the completion of the process, most types of unsecured debts, such as credit card and medical debt, will be discharged. This can help give a person a fresh financial start so they can move forward. After a debt is discharged, a debtor will no longer be required to pay, and the creditor will not be able to try to collect the amount owed.

No Comments

Leave a comment
Comment Information

The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
Map & Directions

Charleston Office