When financial challenges arise in Johnson County, one option to consider is filing for Chapter 7. While it may be perceived as a personal failure not to pay one’s debts, the reality is that Chapter 7 bankruptcy is a frequently used strategy to get back on better financial footing in personal dealings.
A businessman who has personal liabilities that are between $1 million and $10 million, and assets of $50,000 or less has recently chosen to file for Chapter 7. This is a personal filing that comes on the heels of a Chapter 11 filing for one of his struggling companies. The businessman is also being sued in civil court by a investors who put money into a property for development. The attorney for the investors states that the man took as much as $7 million for the property and that no accounting has been done. The man denies any wrongdoing in his business dealings.
There are many reasons why a person would think about filing for Chapter 7. Sometimes there are medical expenses that are too large to pay. In other instances, the individual has lost a job. A farmer might have had a bad year with crops. Perhaps there were mistakes made with credit cards that make it necessary to seek a fresh financial start. When people have little to no money to pay for everyday expenses such as food and medicine or are facing foreclosure on their homes, Chapter 7 is one solution to help solve those problems. It can help a person get a large portion of unsecured debt discharged to move forward with financial challenges significantly assuaged.
In this case, the man who filed for Chapter 7 was a successful businessman who ran into financial challenges in his business and personal dealings. Because of those issues, he found filing for Chapter 7 to be his best course of action. Those who are concerned about similar problems would be wise to discuss their case with an attorney.
Source: TimesFreePress.com, “Chattanooga businessman Allen Casey files for personal bankruptcy,” Mike Pare, Feb. 26, 2014