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Business owner files for Chapter 7 bankruptcy protection

A long-time business owner operated Burger King Franchises for more than 30 years. He sold those franchises in 2007 in favor of some other ventures, including the San Francisco Oven franchise and the Macaroni Grill franchise. However, this change in operations did not work out in his favor. After these major acquisitions, he had to shut down at least one of the restaurants, and he has been left with substantial debt.

As a result he recently has filed for Chapter 7 bankruptcy protection. Chapter 7 bankruptcy is also commonly referred to as a liquidation process because the assets of a debtor are sold to pay off creditors. This can be necessary when someone has accumulated overwhelming debt as in this case.

Now that this man has the protections afforded by bankruptcy law, he is hoping that he will not have to close any further restaurants, but that they can be sold with the approval of the bankruptcy court for their fair market value.

According to that filing he has accumulated more than $17 million in liabilities, with less than $8 million in assets. Included among his liabilities is more than $200,000 in gambling debts, along with wages owed to dozens of employees. Among his assets that he will have to surrender is his home which is estimated to be worth $500,000.

Chapter 7 is available for Tennessee residents who may be in a similar situation. Owning multiple properties and businesses can be difficult to manage, especially since the downturn in the economy. If you have found yourself with mounting debt and dwindling assets, you may want to consider the option of filing for bankruptcy protection under Chapter 7 so that you can move on from your past and start fresh.

Source: KSPR, "Long time Springfield businessman files Chapter 7 bankruptcy," Emily Rittman, March 30, 2012

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