Readers in California may be interested to learn about the recent bankruptcy filing of a man from another state. The man is seeking a Chapter 7 bankruptcy after he became the subject of several lawsuit judgments. Prior to that, the man owned several small businesses.
The man at the center of this Chapter 7 bankruptcy case owned at least two bowling alley businesses in his home state. For reasons that are unclear, but may have involved the recent economic recession that hit many in California so hard, the businesses came into financial difficulty. This led to filing of lawsuits from creditors against the owner.
The judgments that resulted are a part of why the man now is filing a Chapter 7 bankruptcy. In his disclosure documents, he listed only $685,000 in assets set against some $6.6 million in debts. These amounts are what are subject to the bankruptcy process.
As is the case for all who file a Chapter 7 bankruptcy, the man in this matter had to disclose all of his financial information to the court. This information will be used to determine what, if any, of his debts will be repaid under the supervision of the trustee appointed by the court. Those debts that are a part of the bankruptcy, but not repaid, may be discharged at the end of the Chapter 7 process. This is important to those seeking to restart their financial lives in our state, regardless of the reason that they accumulated the debts that led them to the need for the protections offered in a bankruptcy proceeding.
Source: ArkansasBusiness.com, "Former Professor Bowl Owner Rolls With Bankruptcy Filing," July 1, 2013