Mississippi multi-millionaire files for Chapter 7

Some Southaven residents might assume that only those with relatively low incomes struggle with overwhelming debt. What is actually the case with personal debt, though, is that sometimes even a high income can't compete with staggering amounts of debt. Recently, a multi-millionaire from Columbus became involved in a Chapter 7 bankruptcy case in an ongoing dispute with his creditors.

Most individuals filing for Chapter 7 do so voluntarily - that is, they choose to file for bankruptcy for any number of valid reasons. However, it is also possible for creditors to file a petition for involuntary bankruptcy of a debtor in certain situations. A skilled bankruptcy attorney can help individuals and business owners learn more about voluntary and involuntary bankruptcy petitions. In this case, the entrepreneur's four creditors filed the petition last September, and the businessman must appear in federal court June 3.

The entrepreneur's creditors are seeking over $13 million from the man; for his part, he has listed about $4 million in assets and over $43 million in liabilities. While four creditors initiated the filing, the debtor's eventual cooperation with legal proceedings has caused other creditors to attempt to claim his assets. When the man appears in court in Aberdeen next month, he will likely have to answer questions from his creditors about his assets and liabilities. It is not yet known how much of the man's property may be subject to liquidation.

While most Mississippians filing bankruptcy will likely do so voluntarily, this case shows that even high-earning business people can struggle with debt. No matter one's earning capacity, it's important for them to know their legal rights and options with regard to Chapter 7 for individuals and Chapter 7 for businesses.

Source: The Dispatch, "Columbus entrepreneur files $43.6M bankruptcy," Zack Plair, May 16, 2015

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