Many Minnesota business owners know there are a lot of expenses that come with running a business. And, when the individual starts taking on some of these expenses -- if the business runs into financial troubles -- the owner can also find themselves in a bad financial spot.
The economy has slowly been getting better since the Great Recession. At this point, home values are increasing and the unemployment rate is not as bleak as it once was. Granted, the unemployment rate is still higher than what it is during a stable economy, but it is still better than it has been in the past four and a half years.
Whenever a seemingly wealthy individual files for bankruptcy in Minnesota, many are often shocked. The thought is typically that once someone becomes wealthy, money will never again be an issue. However, this is not always true and there are plenty of people who struggle to keep up with their expenses after becoming wealthy.
Many Minnesotans have personally felt the squeeze from student loans. For many, there is graduation and the sudden realization that tens of thousands of dollars is owed for that education. Prior to taking out these loans, many did not worry, believing they would just find a great-paying job right out of college. However, after graduation -- for many -- the realization of the current economy and how much entry level positions actually pay starts to set in.
It is not unheard of for a business venture to sound like a good idea in theory, but then turn into a bust when trying to put it into play. For the person behind the business, when this happens and a lot of money has already been tied up, this can lead to a personal bankruptcy.
There is no doubt that a medical crisis can lead to sudden and unexpected debt for any Minnesota resident. This is particularly troubling, as not only is the actual medical condition stressful enough, but so is dealing with a seemingly constant stream of bills and calls from bill collectors.
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.