Sometimes, individuals will look to the protection of bankruptcy when they are experiencing financial struggles. This can be seen in a bankruptcy case that has recently arisen in Iowa.
The case involves a man who is the founder of a major real estate development company in Iowa. Reportedly, the man and his wife have recently filed for personal bankruptcy. According to the Des Moines Register article which reported this story, in their bankruptcy petition, the man and his wife filed for a Chapter 7 bankruptcy. Chapter 7 bankruptcies generally involve a liquidation of assets and a discharge of debts.
According to the Des Moines Register article mentioned above, hundreds of millions of dollars of liabilities were listed in this bankruptcy petition. Reportedly, among these liabilities are business debts that the man personally guaranteed.
The man reportedly has experienced significant drops in income over the past couple of years.
A representative of the couple stated that the couple filed for bankruptcy due to financial problems they have faced in light of a drastic decline in the market for real estate. Reportedly, the couple has been trying for over a year to deal with these problems.
While this case is from Iowa, it demonstrates a couple of points that are worth noting in other states, including Florida. The first is that things like business struggles and changes in economic conditions can lead to individuals facing personal financial problems. The second is that individuals will sometimes seek bankruptcy protection to help deal with financial struggles.
Source: The Des Moines Register, “Developer Garnaas lists liabilities of $458 million in bankruptcy filing,” Tom Witosky, Dec. 1, 2011
