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Brewing company owner files for Chapter 7 bankruptcy

Running one's own business can be a rewarding experience. However, many times it can be quite challenging, especially in the face of the recent recession which affected businesses in Texas and in every other state. One business owner found this out the hard way when his brewing company was forced to close down. The man later ended up filing for Chapter 7 bankruptcy as a result of his financial hardship.

The petitioner listed assets totaling $3,236 and liabilities exceeding $8.2 million in his personal bankruptcy filing. The man filed for bankruptcy in late February, several weeks following the corporate bankruptcy of his brewing business. In the brewing company's bankruptcy the man listed $51,525 worth of assets with more than $11 million in liabilities.

The man's personal bankruptcy filings listed 370 creditors. Twenty of the creditors listed were government entities to which the man owes at least $865,000 in unpaid tax liabilities. He also listed his parents as creditors, to whom he claims he owes $3 million. At the time of the filing, the man claimed he only had $36.71 in his bank account as well as $200 in a PayPal account.

A Chapter 7 bankruptcy is designed to discharge unsecured debt in Texas or in any other state. This may include business loans as well as credit card debt. However, it does not include tax debts which usually are not allowed to be discharged in bankruptcy. Those looking to gain debt relief through bankruptcy will be required to follow the proper legal procedure, which includes a significant amount of legal paperwork.

Source: lansingstatejournal.com, "Michigan Brewing Co. founder files for personal bankruptcy," Steven R. Reed, March 7, 2013

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