A Florida business owner recently filed for bankruptcy. The news of this Chapter 7 bankruptcy filing comes less than two months after the two Subway stores he owned in Pompano Beach and Lauderdale-by-the-Sea closed.
According to the former owner's Chapter 7 bankruptcy filing, he has $889,379 in liabilities and $360,450 in assets.
When looking at this recent bankruptcy filing, while it is true that the owner closed his stores among allegations from other owners that he had misappropriated money, the truth is that financially, he is in a similar situation to many other Florida residents.
For example, in his filing he lists owing close to $890,000. However, much of that debt is tied into the mortgage he has on his home, which is a common theme among many people who end up filing for bankruptcy.
In general, when looking at the decision to file for bankruptcy, the reasons can range from not being able to continue to afford mortgage payments to having crushing debt from unpaid medical bills. Of course for others, things like excessive credit card debt or the financial downfall from a divorce, can also lead them to file for bankruptcy.
In other cases, business decisions can lead to an overall financial downfall.
Whatever the situation is, it's important for anyone who is thinking of filing to know that he or she is not alone. In fact, especially with the recession, there have been millions of people who have filed.
However, all of this being said, even though many have filed, the process can still be quite complicated, which is why it's best to not go at it alone and instead obtain legal advice when it comes to filing for bankruptcy.
Source: South Florida Business Journal, "Subway store owner Hade files for Chapter 7," Paul Brinkmann, May 8, 2012