When Tennessee residents open businesses, their personal finances could take a considerable hit as they work to make those businesses grow. Unfortunately, not all businesses are successful, and individuals could find themselves facing substantial debt. One individual in another state recently filed for Chapter 7 bankruptcy due to the debt accrued after opening a restaurant.
It was reported that the man had opened the steakhouse and operated the establishment for approximately a year and a half. However, during that time, the man accrued approximately $150,000 in debt. Among that debt was $40,000 which had been loaned to the man by the city in which he opened the restaurant. That loan was to be put toward renovations and start-up costs associated with getting the business running.
Because the man filed for Chapter 7, he was required to liquidate his assets in order to discharge his debt. It was noted that among the man’s possessions were a vehicle, household items and a dog. This bankruptcy filing also stopped efforts by city officials who had filed a lawsuit against the man in order to regain the money they were owed.
Situations of considerable debt accumulation can be devastating for individuals who had high hopes of running their own businesses. Luckily, parties do not have to remain burdened by this debt because they may be able to file for personal bankruptcy in order to work toward discharging such debt. Information on Chapter 7 and other debt relief options may help interested Tennessee residents determine what course of action may prove most beneficial to them.
Source: centralmaine.com, “Bankruptcy closes chapter for Gardiner restaurant“, Jessica Lowell, Dec. 19, 2015