For people in Outagamie, financial challenges can arise at any time. They are not limited to everyday people, but can happen to celebrities and politicians as well. No one is immune. For many, filing for bankruptcy is a strategy for debt relief that they avoid because of preconceived notions about what it implies. In reality, those fears are unfounded and bankruptcy options such a Chapter 7 are tried and true methods to get a fresh start.
A politician and his wife made the decision to file for Chapter 7 with over $900,000 in debt. The couple had secured a loan from the federal government to support a business that eventually failed. The loan was for $613,000 and was taken over five years ago. The Small Business Administration filed suit against the couple earlier this year, claiming that they hadn’t been paid in months. The couple’s listed assets were for just over $120,000. One of the assets that they requested exemption on was their home.
When debt becomes overwhelming, filing for bankruptcy is a viable option. It is important to understand the various types of bankruptcy that are available including Chapter 7. Circumstances are the key. For someone who owns only the basic necessities of life, is having a problem meeting monthly payments, and carries unsecured debt such as medical costs or credit card balances, then Chapter 7 might be a good choice.
In the case of the politician, much is being made of his status as a fiscal conservative. While it might be political fodder to ridicule him, it is also evidence that financial challenges can happen to anyone no matter what they do for a living or believe in. For those who are thinking of trying to get a fresh start, speaking to a legal professional experienced in filing for bankruptcy is a smart first step.
Source: Bradenton Herald, “$900k in debt, Nienow files for bankruptcy,” July 11, 2014