Lon Morris College in Jacksonville, a liberal arts school located less than 120 miles southeast of Dallas, filed for bankruptcy in July with only $11 million in assets from endowment money. Now, bankruptcy attorneys want the court to use its charitable funds to pay off its bills to creditors. The college, the only United Methodist-affiliated school, is fighting to keep the money.

According to the Wall Street Journal, a lawsuit has been filed by the Texas Methodist Foundation, the holders of the endowments, to protect the money. The foundation argues that the individuals who donated their funds in wills or family trusts did not intend for the money to be spent on creditors. However, where the money goes after bankruptcy is not clearly defined in the Bankruptcy Code.

Similar conflicts arose in the late 1980s and 1990s. The court ruling over Bishop College’s bankruptcy case in 1987 denied bankruptcy attorneys from using the school’s charitable money to pay for its debts, claiming the money was not part of the bankruptcy estate. However, in 1996, a hospital in bankruptcy was forced to use charitable donations to cover expenses.

If your business is considering filing for Chapter 11 bankruptcy, a bankruptcy lawyer can explain your options and legal rights. The legal team at the Law Office of Russell Van Beustring can help you through the bankruptcy process to ensure that you are making the right decisions for you and your company.

Iconic photography company Eastman Kodak Co., is taking strides in its efforts to emerge from Chapter 11 bankruptcy protection it enacted early this year.

Part of Kodak’s deal will allow it to borrow $793 million. However, the company will have to sell off its patents for at least $500 million. It has been struggling to find a buyer for the past year, but it is confident that it will be able to sell off these valuable assets in time.

This extra money will greatly help the company move forward in its plans to exit Chapter 11 bankruptcy protection and reorganize its corporate objectives. The once-mighty producer of camera and film equipment held a 90 percent market share in the early 90s, but became complacent and did not switch to digital mediums quickly enough. Its failure to keep up with the technology of the age cost it dearly.

Kodak’s goal is to exit bankruptcy protection in the first part of next year.

Filing for bankruptcy protection is a difficult, but sometimes necessary decision for a company to make. If your small business is facing unmanageable debts, you do not have to face your creditors alone. Enlisting the services of a bankruptcy lawyer can help you determine which kind of bankruptcy is most appropriate for you.