PathoGenetix, a company working to identify pathogenic bacteria in food samples using its own patented genetic scanner, recently filed for Chapter 7 bankruptcy in the District of Massachusetts bankruptcy court.
According to the company’s bankruptcy filings, PathoGenetix owes nearly $1.4 million to creditors and owns approximately $3.5 million in assets. On June 26, PathoGenetix’s board of directors voted that if the company didn’t receive sufficient funding from outside sources by July 2, it would begin bankruptcy proceedings. At this time, the company decided it would also terminate the majority of its employees, except those needed to carry out the Chapter 7 filing, decontaminate equipment and laboratories and generally wrap up operations.
PathoGenetix was founded in 1997, and has received $24 million in funding to develop an automated genome sequence scanning system to test food safety and investigate foodborne illness outbreaks. In 2012, the company announced that it planned to make its automated technology available to government and food industry customers starting in 2013. PathoGenetix’s attorney declined to share any additional information, beyond the information contained in court filing documents, regarding its reasons for filing Chapter 7 bankruptcy.
Corporations do not receive a discharge from debts in a Chapter 7 case, whereas individuals do receive a discharge from most debts. Filing for Chapter 7 bankruptcy by an individual requires meeting a set of qualifications, called the “means test,” before undergoing an asset liquidation process to satisfy outstanding debts. This test determines your eligibility for Chapter 7 by looking at your income, your expenses, and determining whether you have the ability to repay a substantial portion of your current debts.
If you are considering a Chapter 7 bankruptcy, an experienced lawyer can determine if you meet the eligibility requirements, complete all necessary documents and help end creditor harassment. Consult a bankruptcy attorney in Albuquerque to learn more about your options.