Lon Morris College in Jacksonville is on life support financially, because it is so deep in debt it can't pay its bills or meet payrolls.  The situation is so critical that creditors were preparing to foreclose several buildings on the campus this week.

The Jacksonville Progress reports LMC officials have headed off the foreclosure by filing for federal Chapter 11 Bankruptcy protection.


Chapter 11 Bankruptcy isn't the worst thing that can happen to a person or organization that's mired in debt.

Chapter 11 allows a petitioner to stay in business while a bankruptcy court supervises the "reorganization" of the petitioner's contractual and debt obligations.  The court can cancel all or part of the company's debts and contracts, so the company can make a fresh start.

LMC is in this fix because it has over-extended itself and has lost nearly five million dollars since 2007.  As a private school, LMC gets no public tax money, which means student tuition, fees and private donations are its only sources of funds.

Even though the school is closed and almost all employees have been laid off, the Southern Association of Colleges and Schools says it will work with LMC to help it keep its accreditation.

Somewhere in this story there is an object lesson for people who think they can live beyond their means and have a happy life.