Readers in New Jersey may be interested to learn about the bankruptcy of a local man. The man is the owner of an oil company, Norton Oil Company, which recently had some difficulty making the oil deliveries that it contracted to make to people in our state. The Chapter 7 bankruptcy filing came in part due to the personal guarantees made by the owner of the oil company for his business. This filing may help him to avoid a business bankruptcy for his personally owned oil company.
In the New Jersey Chapter 7 bankruptcy case, Norton disclosed that he had some 50 to 99 creditors to whom he owed money. Some $704,000 of the money owed was to unsecured creditors. In total, he asserted that he owes $1.25 million in debts to various creditors, including those that hold the mortgage on his home.
In a Chapter 7 bankruptcy case, a person filing seeks to have as many of their debts discharged as possible. This discharge comes at the end of the case, after a trustee reviews available assets for repayment of the debts listed. Once discharged, the debts are no longer owed. This is a similar result that can occur when a business bankruptcy is filed, though the owner of the oil company did not file a commercial action.
The personal Chapter 7 bankruptcy process may appear to be complicated to some people in Massachusetts. Because of this, it is often a good idea to complete a review of the available chapters and options. This effort can pay off when people are able to relieve themselves of much of the debts that they are struggling to pay and are able to restart their financial lives. This is likely the outcome hoped for in the most recent case of the owner of the oil company -- who first considered a business bankruptcy before filing this personal case.
Source: cnbc.com, Bankruptcy no friend to struggling U.S. retailers, Nick Brown, Dec. 19, 2013