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Former Senior Living Care Owner Files Bankruptcy

By Daniel @ LivingSenior - July 3, 2013

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An entrepreneur who was known for running several senior care homes around the region has now filed for personal bankruptcy. It has been said that he has listed almost $14 million in liabilities and around $836,000 in assets. The owner of the White Bear Lake based ‘Suite Living Specialty Senior Services’ filed a Chapter 7 bankruptcy according the U.S. Bankruptcy Court records for the month of February. Supposedly, the company went defunct around eight months ago, which was revealed by the owner’s attorney. There were senior living homes available in areas such as Maplewood, North Branch, Blaine, Hugo, and Champlin.

Although the man filed bankruptcy, many of the locations are still operating as senior care homes. Most of them were owned by a real estate investment trust, which allows the locations to continue running as senior care homes as long as they have different ownership. The filings of the bankruptcy court seem to reveal much of the happenings which eventually led to the decline of the company. The man began his business within the senior care niche within 1999, during which the company had a different name. He had homes in Wisconsin and Minnesota. By 2010, the homes were rebranded with a new name. The company was said to offer a nursing home level of care which focused on dementia, Alzheimer’s, and Parkinson’s. Later on, it seems that the company was sued three times during the year 2012.

At one point, the company was looking to have a contract to plan and design a new location. Having hired a group of architects, the arrangements were made, but then the senior care home owner never followed up with paying the architects in question, which is likely why the court appearances and suing incidents occurred. The company stated that they didn’t believe that they would ever see the money from the negotiations again at this point.

One of the largest concerns is what the next step will be now that bankruptcy has been filed. Supposedly, the main goal is that filing bankruptcy would allow for the company to start operating again under a clean slate and that they would not have to deal with the issue of owing money to creditors anymore. However, there are those who have complained, stating that they are concerned about what level of quality or care the senior care home company would even be able to provide when compared against their previous actions.

For the most part, it likely won’t be so simple; having filed bankruptcy, the company is more likely to start experiencing more contact from previous creditors, with many of them requesting their money that is owed or even going as far as to file claims. Ultimately, it depends on the amount of money that is owed overall and the willingness of the creditors to overlook or pursue the debts in question. The good news regarding this and similar stories is the vast majority of locations are remaining in business. This means that seniors may not have to worry, or at least worry as much, about their assisted living and senior care choices.