There are many circumstances that could lead a resident of the Twin Cities to seek financial relief via a bankruptcy filing. The accumulation of debt in connection with businesses one owns is one such reason. A business man who currently works for a real estate agency based in Coon Rapids recently filed for Chapter 7 bankruptcy due to this very thing.
Before holding this job the man was partners with another local businessman in a real estate company. That high profile businessman also owned multiple car dealerships. The real estate business folded when the market took a hit in 2007 and the man's former partner went to prison in 2011 for defrauding lenders in connection with his car dealerships. The man who recently filed the bankruptcy petition told at least one individual that his financial issues were rooted in the business relationship he had with his now incarcerated former business partner.
In the current filing the man indicates that he owes more than $8.4 million to creditors. Of that amount, approximately $5.3 million is owed to three creditors. He claims his assets total $9,603.
Few people who find themselves facing financial difficulties want to be there. Sometimes there are factors that are out of their control that lead to such a filing. Financial decisions made by business partners are one of these situations. Whatever the reason one decides to file for bankruptcy, it is likely that many questions will arise as the individual works his or her way through the system. Bankruptcy lawyers are generally good resources in those instances.
Source: Twin Cities Business, "Former Denny Hecker Biz. Partner Files For Bankruptcy," Jake Anderson, Jan. 20, 2014