For many in Summit, owning their own business and only having to answer to themselves would be a dream come true. The American Dream was built off of such ideals. Yet many underestimate just how much responsibility one assumes as his or her own boss. Should the business fail, his or her own personal financial situation often goes down with it. Thus, many failed business owners are often left to file for personal bankruptcy right along with their businesses.
The current struggles of a Michigan businessman show just how much one’s personal finances can be influenced by the success or failure of a company. After 15 years of running his local furniture store, the man was forced to close his doors as mounting business debts had forced him into Chapter 7 bankruptcy. Among his many creditors are former customers who’d made payments for furniture that was never delivered. It’s believed that the owner had probably spent the money those customers had paid before ever paying the furniture manufacturer for the pieces. Whether that money went towards other business expenditures is unknown. What is known is that now, many of his non-exempt personal and business assets will be liquated to help pay off his creditors and eliminate his debts.
While such a process is no doubt difficult, for many, it’s the best way to get out from under crushing debt and start anew. With that new start comes the opportunity to rebuild one’s financial life while hopefully incorporating some of the lessons learned from the past. For those in such a dire situation, a bankruptcy attorney may be of great assistance in helping them to take advantage of this form of debt relief.
Source: The Flint Journal “Public bankruptcy hearing for Naked Furniture owner scheduled for March 27” Jeremy Allen, Mar. 25, 2014