When it comes to conducting a business, individuals need to be financially aware of how a project could potentially affect their business and their personal income. If a project is undertaken and does not go as planned, a great deal of money could be lost in some cases. If the situation is dire enough, a business could file for bankruptcy, and an owner could also file for Chapter 7 bankruptcy.
A Tennessee businessman has found himself in such a situation. The man has conducted many real estate transactions that have resulted in proving successful in the past. Unfortunately, one of his newer ventures was not as successful. Lawsuits from investors involved in the project resulted in further financial troubles.
The company filed for bankruptcy, and two days later, the owner filed his own personal bankruptcy. The owner has declined to comment on the current situation. Other real estate individuals have expressed how entering into a project during the wrong part of a real estate cycle could lead to difficulties in completing a project successfully.
As this situation shows, financial difficulties can stem from a number of situations. However, the owner of the company may be able to receive assistance in his situation due to filing Chapter 7 bankruptcy instead of attempting to handle his financial burden on his own. If individuals find themselves in a similar situation due to unfortunate business transactions or other financial burdens, they may wish to look into Tennessee state law concerning bankruptcy to decide whether such a path could be right for them.
Source: timesfreepress.com, Chattanooga businessman Allen Casey files personal bankruptcy, Mike Pare, Feb. 27, 2014