Just as a person who is drowning feels desperate for a gasp of fresh air, a person who feels submerged in overwhelming debt may desire a helping hand. Being underwater financially can indeed be stressful; however, the avenue of Chapter 7 bankruptcy can help a person to start over again financially. This is the situation that one business owner recently faced in Michigan.
The man, who owned Naked Furniture, filed for Chapter 7 bankruptcy due to being in the hole by more than $500,000 but under a million dollars. The man ended up having to close his wood furniture store in Michigan as well. The bankruptcy filing will help him to get rid of his debt via the process of liquidation.
Liquidation means that a trustee will gather his assets and sell off those belongings that are considered non-exempt. In this particular case, these include assets from his business and his home, and they are worth between $100,000 and $500,000. More than 70 creditors were named as creditors in the filing, but they will only be able to receive a share in the man's estate distribution if they file a claim with the office of bankruptcy in Michigan.
Being in debt can cause feelings of hopelessness and even embarrassment for an individual in Michigan, particularly when he or she is subject to wage garnishment. Sometimes, a person's efforts to eradicate growing debt are unfruitful. Chapter 7 bankruptcy is a legal solution that can help a debtor to finally overcome this debt and experience are more peaceful, victorious life in the coming years.
Source: mlive.com, Ann Arbor store closes after business owner files for Chapter 7 bankruptcy, Jeremy Allen, Mar. 11, 2014