Many in Summit are surprised when they hear of a local prominent citizen filing for personal bankruptcy. These people often portray extravagant lifestyles and would appear to most to be the very definition of sound financial planners. Yet often many of these people perceived to be wealthy have almost all of their personal assets tied up in business endeavors. Should changes in the market or poor business decisions cause those endeavors to fail, they are often left with literally nothing. From this prospective, it would almost seem as though those in these situations are more likely to need to seek bankruptcy protection than the rest of the general population.
A prominent Tennessee businessman appears the latest in the line of those whose poor business decisions lead them to personal financial ruin. In his case, the source of both his professional and personal financial stress was a riverfront development project for which his investors have now come to collect on. The failed deal has driven his company into Chapter 11 bankruptcy, and has also forced him to seek his own bankruptcy protection. His petition from his Chapter 7 filing lists his personal assets at less than $50,000, with liabilities in the millions.
Many people from similar financial backgrounds also find elaborate ways to incur large debts. Yet extreme financial struggles aren’t limited solely to the rich; those living on an average income can just as easily find themselves struggling with overwhelming debt. Whatever one’s financial situation may be, a Chapter 7 bankruptcy may be the best option to help free him or her from debts while still allowing him or her to retain some assets on which a firm financial foundation can be rebuilt. Those needing this protection may wish to seek the assistance of a bankruptcy attorney.
Source: Chattanooga Times Free Press “Chattanooga businessman Allen Casey files for personal bankruptcy” Mike Pare, Feb, 26, 2014