Bankruptcy is a debt management option that many Tennessee residents may have considered at one point or another. Chapter 7 is the most common form of bankruptcy, and its liquidation process has allowed numerous individuals to get back to financial stability. As such, individuals who are on the fence about filing their own personal bankruptcy may wish to look into the potential benefits.
One man in another state recently took advantage of this option. Reports indicated that the chef and restaurateur had accumulated over $1 million but less than $10 million in debt. It appeared that the creditors listed in the report were business related, but it was also noted that there were over 100 creditors involved in the case. Of those specifically named in the report, the debt amounts ranged from approximately $12,000 to over $406,000.
With his assets only valuing between $50,001 and $100,000, bankruptcy was likely the right step for the man to take. No specific assets were disclosed in the report. Business losses can often be difficult to contend with, and as the man reportedly owes over $25,000 in rent for one restaurant space, getting back on track is undoubtedly his goal.
Facing substantial debt does not have to seem like the end of the world. Though it is a serious matter to address, there are various options the could help with debt relief. Tennessee residents interested in Chapter 7 bankruptcy may find consulting with experienced attorneys and gaining more knowledge on the option useful as they work toward getting their personal finances back to their desired point.
Source: bizjournals.com, "Phila. Chef Luke Palladino files for Chapter 7 bankruptcy", Kenneth Hilario and Alison Burdo, Sept. 9, 2016