Sometimes, individuals will seek the protection of bankruptcy in response to struggles with debt. Many things can lead to an individual facing problems with debt. Two things that can play a role in a person facing such struggles are poor economic conditions and business problems.
This can be seen in a bankruptcy case that has recently arisen in Indiana. The case involves a 54-year-old man from Indiana. The man owns a homebuilding company. It recently has been reported that the man has filed for a Chapter 7 personal bankruptcy in a bankruptcy court in Indiana. A Chapter 7 bankruptcy generally involves a liquidation of assets and a discharge of debts.
According to the Indianapolis Star article which reported this story, the man has tens of millions of dollars of debt.
According to the man, the conditions the economy has experienced in recent years contributed to the financial struggles he faces. Reportedly, much of the debt he holds consists of loans that were given to his company that he personally guaranteed. His company reportedly has experienced difficulties in the weak economy. Reportedly, earlier this year, as a result of downturns in new-home sales, the company shut down its sales operations.
It appears that the man is remaining optimistic despite the apparent sour turn of events that he has faced. He has said that he sees himself as starting over, not being as "knocked out."
This case demonstrates a couple of points worth noting. The first is that individuals will sometimes look to the protection of bankruptcy when they are facing financial struggles. The second is that business problems can sometimes lead to a person facing personal financial struggles.
Source: The Indianapolis Star, "Paul Estridge Jr. files for personal bankruptcy," Jeff Swiatek, Sept. 30, 2011