Filing for bankruptcy is a step that people from any socio-economic background can consider if their liabilities are greater than their assets. Whether the individual involved is a millionaire, is struggling from one paycheck to the next or has suffered from a job loss, bankruptcy protection can assist with debt relief and provide some financial breathing room. In the case of one former executive, such a filing was the continuation of an ongoing professional and personal saga.
Our readers in Long Island might be interested to learn that the former CEO of a company that produced machine tools has filed for bankruptcy protection. The man lists his personal assets with a value of $18 million, while he lists his liabilities at $19 million. The filing comes on the heels of a court order that ordered the company to be transferred to his estranged wife, as well as an order to pay damages of $8.6 million for breaching his fiduciary duties.
The bankruptcy petition lists the $8.6 million debt and a $5.6 million personal guarantee the man made on behalf of another company to a bank. He is also embroiled in a lawsuit with his estranged wife and her father regarding a $17 million note he owns against the pair.
Although most personal bankruptcy cases are not this contentious or complicated, anyone considering this route should learn as much about the process as possible before proceeding. Knowing what can and cannot be included in a bankruptcy can help determine if the process is the right choice when seeking debt relief and a fresh start.
Source: Bizjournals.com, “Embattled Cincinnati Inc. exec files for bankruptcy,” Jon Newberry, Jan. 28, 2013