Three Small Carriers in California, Illinois and Maryland File Chapter 7 Bankruptcy

Three more small trucking companies have filed Chapter 7 bankruptcy, and they all pointed to the same problem: trouble repaying equipment lenders.
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What Chapter 7 means
Chapter 7 is not the kind of bankruptcy where a company reorganizes and keeps running. It is the kind where what is left is sold off. Trucking Dive reports the three filings.
The three companies
One was a 20-truck carrier in Manteca, California, with nearly $3.4 million in liabilities. That carrier also owed the Small Business Administration more than $158,000.
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One was a 12-truck company in White Plains, Maryland, with more than $541,000 in liabilities.
One was a family business in Waverly, Illinois, with four trucks and more than $1 million in liabilities.
The cleared report does not name the companies, so they are not named here.
Why it matters to truckers
Truck payments do not stop when freight slows down. For a small fleet, a few bad months can end the business. This is part of a harder year for small carriers, including a recent count of trucking bankruptcies that rose in September.
Quick facts
- All three filings are Chapter 7, a wind-down, not a reorganization.
- Manteca, California: 20 trucks, nearly $3.4 million in liabilities, and more than $158,000 owed to the Small Business Administration.
- White Plains, Maryland: 12 trucks, more than $541,000 in liabilities.
- Waverly, Illinois: a four-truck family business, more than $1 million in liabilities.
- All three cited trouble repaying equipment lenders.
FAQ
Did these companies reorganize and keep operating?
No. Chapter 7 is the process in which a company sells off what is left. It is not a reorganization.
A question for readers
Truckers, what is harder on a small carrier right now, the truck note, the insurance, or the rates?
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Sources
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