Illinois will soon be holding the largest personal property auction in the state’s history. The auction results from the Chapter 7 bankruptcy of a Springfield store and the personal bankruptcy of the company’s founder.
The bankruptcies were filed in September and an Illinois bankruptcy judge is currently considering whether or not to consolidate the two filings. Several interesting items have been listed in the online auction, including an electric chair from a New York state prison, Abraham Lincoln collectibles, Elvis sunglasses and rare coins. The company founder’s items have also been listed, including an extensive taxidermy collection. A vehicle belonging to the company has already been sold. Resulting money raised will likely go to pay federal and state back taxes, as well as penalties.
Businesses and consumers alike struggling with debt can seek debt relief by filing for Chapter 7 bankruptcy. To file for Chapter 7 bankruptcy as an individual, the individual’s income must not be too high. The court will use a “means test” to determine whether income is too high and the bankruptcy should be converted to a Chapter 13 bankruptcy.
Businesses facing overwhelming debt may file Chapter 7 for businesses. Individuals facing personal debt and financial challenges may also seek a fresh financial start by filing Chapter 7 for individuals. The process is essentially the same in both cases. Sometimes referred to as a “straight bankruptcy,” Chapter 7 bankruptcy involves asset liquidation to pay off debt and creditors.
In a Chapter 7 bankruptcy, the filer must turn over certain non-exempt assets to be sold to pay off the filer’s debts. In a Chapter 7 filing, asset liquidation is exchanged for cancellation of the filer’s debts. For those struggling with debt and facing overwhelming debt burdens, debt relief may be found through Chapter 7 bankruptcy. Chapter 7 may allow filers to liquidate debt and find a fresh financial start.
Source: SJ-R.com, “Electric chair, hunting trophies, more in Parsons bankruptcy sale,” Tim Landis, February 5, 2013.
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Illinois company, founder seek Chapter 7; rare items being sold