Center for Emotional Health, PC, based in Salisbury, has filed for Chapter 11 bankruptcy. The North Carolina-based healthcare provider filed for bankruptcy to reorganize its debts and continue operations.
Center for Emotional Health, PC Seeks Bankruptcy Protection
According to Pacer, the Center for Emotional Health, PC voluntarily filed the petition on November 10 in the U.S. Bankruptcy Court for the Eastern District of North Carolina. Attorney Philip Sasser from Sasser Law Firm is offering legal representation to the healthcare business in the case.
The filing classifies Center for Emotional Health, PC as a healthcare business under 1 U.S.C. § 101(27A).
The official filing adds that the Board of Directors authorized President Jonathan Stoudmire of the Salisbury location of Center for Emotional Health, PC, to file the bankruptcy, sign all legal documents, and hire Sasser Law Firm to represent the healthcare company.
Center for Emotional Health, PC is an organization that operates 27 locations across North Carolina, including Salisbury, offering outpatient therapy, Transcranial Magnetic Stimulation (TMS), medication management, and counseling.
The healthcare provider from Salisbury made its official filing in the U.S. Bankruptcy Court for the Eastern District of North Carolina, as its principal place of business is based there.
Bankruptcy Details
Details shared through case number ‘5:25-bk-04478’ confirm that the assets of the Salisbury location of the Center for Emotional Health, PC are between $1,000,001 – $10 million. The official filing further shows that the healthcare business’s estimated liabilities are in the range of $1,000,001 – $10 million.
The filing shows that Center for Emotional Health, PC has significant liabilities and 100–199 unsecured creditors. The Salisbury office plans to repay creditors from remaining assets as part of the Chapter 11 proceedings.
Newtek Small Business Finance, LLC, U.S. Small Business Administration (SBA), Fox Funding Group, LLC, Square Advance, and Bizfund, LLC are among the North Carolina-based healthcare business’s 20 largest unsecured creditors.
According to Pacer, the U.S. Bankruptcy Court for the Eastern District of North Carolina may appoint a Health Care Ombudsman for Center for Emotional Health, PC, with a decision expected by December 10. This person will ensure that patients at Center for Emotional Health, PC are protected and continue to receive the required care during the bankruptcy process.
The court has requested an update from Center for Emotional Health, PC, on the progress of the case by November 12.
On November 10, attorney Philip Sasser requested that the healthcare provider receive official court notices electronically and not through the mail. This is to ensure the speed of the bankruptcy case.
The coming months will show whether the Chapter 11 filing allows Center for Emotional Health, PC to reorganize its finances while keeping its Salisbury and statewide locations open.
