Having a business struggle can have considerable impacts on an individual. That party may have placed a great deal of time and money into the business, and it's financial losses could lead to serious debt issues. Ohio residents may be interested in a case in another state in which a man recently filed for Chapter 7 bankruptcy due to a restaurant facing overwhelming financial issues.
The man had apparently opened the steakhouse in 2013, and the business operated for approximately a year and a half. During that time, the man accrued $150,000 in debt from various lenders, including the city in which the restaurant was opened. The city loaned the man $40,000 to put toward start-up costs and renovations to the structure. The city eventually filed a lawsuit against the man in attempts to gain repayment.
Because of his financial issues, the man filed for Chapter 7 bankruptcy. This filing stopped the lawsuit filed by the city, and the man was required to liquidate his assets in order to discharge the debts. Among his assets were a vehicle, household assets and his dog.
Facing debt issues that seem insurmountable can cause a great deal of stress for individuals. As this case indicates, filing for bankruptcy could be an option to consider that may help in the discharging of certain debts. If Ohio residents are interested in seeking assistance due to overwhelming debt, they may wish to look into Chapter 7, Chapter 13 or other debt relief options that could potentially suit their circumstances and help them work toward a fresh financial start.
Source: centralmaine.com, "Bankruptcy closes chapter for Gardiner restaurant", Jessica Lowell, Dec. 19, 2015