CEO Philip H. Sanford said the debt restructuring plan would leave the company with a strong balance sheet, fully funded business plan and the ability to make investments. He regreted that there is  'insufficient value for our equity holders and unsecured creditors to share."

The bankruptcy filing was made in the U.S. Bankruptcy Court for the Distict of Delaware. The filing included the reorganization plan agreed to with the company's lenders. It asks the court confirm the plan on an expedited basis. Under the proposal, secured lenders would receive a pro rata share of equity in the reorganized company. Jackson Hewitt also anticipates entering a new $115-million revolving credit facility once the plan is approved.