Business and personal bankruptcies tend to have processes that are slightly different. They do have one particular thing in common, though. In both cases, the entity filing for bankruptcy protection typically faces a debt burden that is too much to handle, and bankruptcy provides a legitimate means for addressing debt obligations while blocking the undesirable threat of creditor legal action.

The availability of protection through bankruptcy is something that is open to anyone who meets the requirements for eligibility. The media writes about businesses using the system all the time. Too often, individuals make the mistake of thinking that bankruptcy represents a last resort and that it’s somehow a reflection of their personal failure. Consultation with an attorney at the earliest signs of trouble offers the opportunity to have those notions dispelled. 

A good example of the bankruptcy rules in action, at least as far as business is concerned, is offered up in the recent news about the sale of Metropolitan National Bank of Little Rock. The troubled asset of Rogers Bancshares Inc. got auctioned off last week as part of a Chapter 11 filing. The winning bid on the deal came in at $53.6 million. It came from Simmons First National Corp. of Pine Bluff.

A few things are of important note in the deal. For one thing, this represents the first bank sale by auction in Arkansas history. Additionally, the winning bid wound up being better than three times more than what had been initially offered by a Dallas investment fund. Finally, the winning bid is just slightly more than what Rogers Bancshares had listed as what it owed creditors in bankruptcy.

It isn’t clear what the full implication of the sale price will be in terms of what creditors will collect, but there are some observers who say they’ll likely get more than they would have if the initial bid had been the last word.

The future for Rogers Bancshares likely looks brighter, as well.

Source:, “Judge Approves Simmons First’s $53.6M Bid for Metropolitan National Bank,” Lance Turner and George Waldon, Sept. 12, 2013