When a Tennessee resident owns multiple businesses, he or she may feel as if he or she has achieved some success in his or her life. However, even successful businesses can face hardships, and, if those difficulties are serious, a party’s personal finances could be negatively affected. If debt begins to accumulate and business struggles continue, filing Chapter 7 bankruptcy may be a prudent step.
A couple in a neighboring state recently had to file for Chapter 7 bankruptcy after facing such struggles. It was reported that the woman and her husband had approximately $2.5 million in debt after one of their businesses closed. The business had reportedly been operating for 32 years, but the housing market struggles resulted in the business recently failing. Though the couple also had other businesses, those businesses also began to struggle.
The couple had attempted to work with creditors to lower their debt, but, as the man had been without a job for three years and the woman for two years, the situation was not easily remedied. After returning property and other assets, the individuals still had considerable debt and felt the need to file personal bankruptcy. The bankruptcy filing was a move that they felt could no longer be avoided.
Filing for Chapter 7 bankruptcy can be a difficult decision for some, but, as this situation shows, sometimes it is necessary. Bankruptcy may be able to help individuals who have tried to handle their debt in other ways but found the situation too overwhelming. Tennessee residents who are facing such hardships may wish to look into bankruptcy options to determine whether filing could start them on a path to financial stability.
Source: baxterbulletin.com, “Assessor, husband file for bankruptcy“, Thomas Garrett, March 4, 2015