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Texas businessman files for personal and business bankruptcy

According to a recent media report, John W. Beakley, a businessman who operates Roundtable Corp., which owns many Dairy Queen restaurants throughout Texas, recently filed for business and personal bankruptcy.

At the beginning of March, the businesses owned by Beakley all filed bankruptcy. Later in the month, he filed for personal bankruptcy protection.

In between the two filings, Beakley was accused of allegedly committing investment fraud. The result of the accusation led to U.S. District Judge in Lubbock, Sam Cummings, ordering Beakley's assets to be frozen.

The judge subsequently ordered a Receivership Trustee to review the companies owned by Beakley and make an accounting of each business -- an action which prompted the Receiver to have Beakley held in contempt of court.

However, Beakley's personal bankruptcy has now protected him from the contempt allegations and prevented the court from enforcing the order.

Now, even though Beakley's companies were able to file for bankruptcy before the judge's order took effect, it is questioned whether he violated the judge's order by filing his personal bankruptcy after the order was implemented.

It is not uncommon for an individual suffering under the financial strain of a decline in business profits to also seek personal bankruptcy protection.

A business owner's livelihood to support his or her family is directly affected by a failing investment, such as a chain of restaurants. If the individual is not able to make enough money to run their business, it may also be difficult for them to maintain the income to support their household. Seeking bankruptcy protection for the business and personal finances will protect many of Beakley's assets and hopefully provide him with a fresh financial start.

Source: KCBD.com, "Beakley tells Lubbock judge why he should not be held in contempt," James Clark, March 30, 2012

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