Running a successful business can be challenging. There are usually significant financial challenges, and the ever-evolving marketplace can make these obstacles even more daunting. Those businesses that wind up overwhelmed with debt may be able to find relief and protection via bankruptcy, but what about those who own and run such businesses? Could they, too, face serious money woes?
The answer is a resounding ‘yes.’ Just take, for example, the former CEO of Fikes, a once thriving trucking company that is now out of business. This individual recently had to file for Chapter 7 bankruptcy, also known as a liquidation bankruptcy, in order to shed his debt. In his bankruptcy petition, the former CEO listed between 50 and 90 creditors, stating debts between $500,000 and $1 million. His assets were also listed at between $500,000 and $1 million.
Amongst the former CEO’s creditors are many business creditors. Amongst those are Fikes and two other trucking-related companies. The former CEO even listed himself as a creditor. If his Chapter 7 petition is granted, then this individual may be able to have his debt eliminated after his assets are liquidated. This can be a challenging process, even for those who were once thought of as financially steady. Life post-bankruptcy can look significantly different, but that should not discourage individuals, including this businessman, from seeking the relief they need and deserve.
After all, bankruptcy can give an individual a fresh financial start. Sure, there may be challenges ahead of an individual who filed for bankruptcy, but for many these challenges are worth having the burden of crushing debt lifted off their shoulders.
Source: Land Line Mag, “Former CEO of now-defunct Fikes files Chapter 7 bankruptcy petition,” Clarissa Hawes, Feb. 24, 2016