Minnesota entrepreneur bankruptcy: personal and business debts

A Minnesota entrepreneur recently filed for Chapter 7 bankruptcy. In his personal bankruptcy filing, he included a number of debts tied to a now defunct business, which is a rather common occurrence when it comes to business owners filing for personal bankruptcy. The idea is to wipe the slate clean in their personal and professional lives through bankruptcy.

The 48-year-old entrepreneur is most well-known in the area for his work in the senior care market. He had at one point owned the Suite Living Specialty Senior Services, which had multiple locations in Minnesota.

The 48-year-old started in the senior living industry 14 years ago. At the time, the facilities were in Wisconsin and Minnesota and under the name Comforts of Home. There was a rebranding in 2010.

However, the Suite Living LLC went defunct eight months ago. But, since these senior facilities are owned by a real estate trust, many are still operational, just under different ownership.

According to the Chapter 7 bankruptcy filing, the entrepreneur has close to $14 million in liabilities and just $836,147 in assets. Of the more than 200 creditors listed in the filing, many are tied to his former business. Banks, medical service companies and architect firms tied to the senior living facilities are named in the lawsuit as being owed money.

In looking at this bankruptcy, it is not unheard of for an entrepreneur to file for a personal bankruptcy, yet include debts related to a business life. In these cases, the point is to try and include all debts that are linked to a person's name in order to make sure all debts are discharged. This would save a person from having their personal debts discharged, yet still dealing with the stress and calls from creditors tied to business debts.

Source: Star Tribune, "Former owner of White Bear Lake senior living firm files for bankruptcy," Justin Miller, Feb. 27, 2013

  • Our law firm handles cases like the one mentioned in this post. To learn more about filing for personal bankruptcy, visit our Minneapolis Chapter 7 bankruptcy page.

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