Recent times have been hard on a lot of residents of Illinois. For those working in industries such as real estate, where income can vary greatly from year to year based on market conditions, the downturn has been particularly difficult and has caused many to face some difficult financial challenges. For one prominent real estate entrepreneur, filing for Chapter 7 bankruptcy in Illinois was the first step toward addressing debt issues and finding financial stability.
In his filing, the businessman listed about $187,000 in assets in comparison with $13.9 million in debts owed to various creditors, including a number of banks. Times were not always as tough, however. The entrepreneur founded a prominent real estate brokerage in Florida during the real estate boom in the mid-2000s. However, the company failed in 2008. He continued to work, however, and he was even involved in an auction of the entertainer Cher’s home in Hawaii. The businessman made over $400,000 in 2010, according to his filings, but that income dropped drastically to just over $75,000 in 2011. His major asset is a piece of property worth about $150,000.
For many residents of Kane County, this story may strike a chord. Here, the businessman chose the path of Chapter 7 bankruptcy because it allows for debts to be liquidated instead of reorganized. This can be incredibly helpful for those who are able to qualify, as it provides debt relief to the filer who may otherwise be facing a possibly insurmountable debt. However, filers should be aware that some debts – such as child support or student loans – cannot be discharged under Chapter 7.
Many people in Illinois may be facing financial challenges – whether they are a high profile entrepreneur or a blue collar worker. Aside from Chapter 7 bankruptcy, other options may be available to those who don’t qualify – such as Chapter 13 bankruptcy – to help provide debt relief. Understanding one’s options is the first step toward a positive financial future.
Source: Herald-Tribune, “Sky Sotheby’s Chad Roffers seeking Chapter 7,” Michael Braga, Aug. 14, 2012
Originally posted here:
Chapter 7 bankruptcy offers protection to businessman