When Michigan Brewing Co. founder, Bobby Mason, recently filed for Chapter 7 bankruptcy, to liquidate his estimated $8 million dollars worth of liabilities, which he owed to close to 400 creditors, he also put his parents in a desperate position, essentially leaving them at the edge of financial ruin. The bankruptcy filing, along with the numerous lawsuits, came as quite a surprise to Mason's family, especially considering the brewery was allegedly bringing in close to $4 million a year in sales.
It was the brewery's estimated sales that convinced Mason's parents to offer up their real estate holdings and co-sign loans for their son in the first place. Now, after having invested at least $3 million dollars over the past decade and a half, including having put up their home, land and businesses as collateral, to help finance their son's microbrewery operation, Robert and Brenda have lost their home of 45 years to foreclosure, lost their truck stop and associated businesses (which provided their monthly income) and found themselves facing a mountain of debt. They have since been forced to live off of their social security benefits and are being aggressively pursued by the banks, who are attempting to collect on the various defaulted loans.
One of the most important things to consider before you file for bankruptcy, is what kind of effect your bankruptcy will have on friends and loved ones who have invested in you, have co-signed loans on your behalf or have otherwise provided you with some form of financial aid. While you may or may not be in a position to do anything about it, it is a factor which should be taken into account. In some cases, filing for a Chapter 13 bankruptcy rather than a Chapter 7 bankruptcy could allow for a repayment plan, which may be a better alternative to leaving a spouse or loved one struggling to repay the debt on their own.
If you need a bankruptcy attorney to help you with your financial situation, we recommend you contact the Law Offices of Marshall D. Schultz and speak to one of our skilled bankruptcy attorneys as soon as possible. With more than three decades experience helping clients with all kinds of different bankruptcy-related issues, and having filed more than 10,000 consumer bankruptcy cases on behalf of our clients, our attorneys have the knowledge and expertise you want on your side.
To find out whether or not bankruptcy would be right for you, contact a Detroit bankruptcy lawyerat our offices today and schedule a free consultation.