Sometimes, a series of events or just one crippling event can lead a consumer or business owner to a bankruptcy filing. Some Maryland residents can no longer afford to pay their monthly debts or their debts far supersede their household income. In cases like these, Chapter 7 Bankruptcy protection may be the most viable option for a new financial beginning.
The owner of an oil company faced financial setbacks and filed for Chapter 7 bankruptcy. The owner, along with his wife, have a joint monthly income of $3,338 with monthly debts of approximately $4,300. At the present time, there are up to 99 creditor claims. Reportedly, he only has a little over $700,000 in assets, but $1.25 million in liabilities, including over $500,000 in mortgage debt and $18,500 on a car loan.
Due to the lack of income and the staggering amount in liabilities, the owner was forced to shut down his company. Customers were left feeling the pinch of this since they already paid for their products and will not receive a refund. In addition, the oil customers filed civil claims in court against the company’s owner.
The man’s circumstance is an example of how someone can land in a pitfall of debt. Since the company likely would not have been able to withstand a Chapter 11 filing, Chapter 7 bankruptcy protection may allow him to discharge most of his debt. Many Maryland residents choose this option when their financial woes are severe. Each consumer’s financial status is different and it can be beneficial to seek legal advice about the debt relief options that are available.
Source: lehighvalleylive.com, Richard Norton, owner of Norton Oil Co., files for Chapter 7 bankruptcy, Matthew Bultman, Dec. 18, 2013