The Michigan microbrewer Bobby Mason, founder of Michigan Brewing, Co., of Webberville has filed for Chapter 7, the debt liquidation bankruptcy, listing his assets at $3,236 and his liabilities at over $8 million dollars.
Bobby Mason, from rural Williamson, filed bankruptcy in U.S. Bankruptcy Court in late February; just four weeks after MBC filed corporate bankruptcy. In the brewery's debt liquidation petition, Mason listed the assets at a value of $51,525 and the liabilities at over $11 million.
In Mason's personal bankruptcy petition, he listed out nearly 400 creditors, 20 of which were government entities seeking more than $865,000 in tax debts. These debts included unemployment insurance, federal brewer's bond and beer manufacturer's, withholding, income, sales and use. He also included his parents, Robert and Brenda Mason and the Mason Family Enterprise, claiming he owed them $3 million dollars.
Of his personal assets, Mason said he had less than $40.00 in his checking account, and $200 in a PayPal account. He said he didn't own any real estate, household goods, furniture or jewelry. He did place a $300 value on his clothing and said he owned three firearms, valuing them at $1,700. He also listed 10 empty beer kegs that were worth around $1,000 in total. As far as his current occupation, Mason said that he is earned a living by welding and crafting and said he made $100 by selling welded goods on EBay.
Mason started Michigan Brewing Company from a home-brewing kit; he went on to register MBC with the state in 1995. Over the next 17 years his brand grew in popularity, and in 2009, he made an agreement for MBC to be the contract brewer for Kid Rock's American Bad Ass Beer.
Unfortunately, MBC ultimately ran into financial troubles, in April of 2012, MBC was evicted from the building where they had a restaurant and a brewing operation. Mason had lost the facility twice due to foreclosure sales. Mason decided to file a corporate bankruptcy seven months after one creditor had forced the auction of MBC's brewing equipment and the MBC brands that had a loyal statewide following.
The Great Recession or the global recession of 2009 refers to the global economic decline that began in December of 2007. The global recession affected economies worldwide, and it is characterized by a number of systematic imbalances that was incited by the financial crisis of 2007 and 2008. In effect, real estate, the job market, and the American economy as a whole has been impacted by the recession. It's not easy to watch the American dream go down in flames as businesses such as Michigan Brewing Company struggle to remain afloat, but fortunately, entrepreneurs can minimize the personal financial consequences of their struggling businesses by filing Chapter 7 bankruptcy.
At the Law Offices of Marshall D. Schultz, we have over 33 years experience and more than 10,000 consumer bankruptcy cases under our belt. Our Detroit bankruptcy attorneys are members of the State Bar of Michigan and they are both members of the U.S. District Court. If you have found yourself in a detrimental financial situation due to reasons beyond your control, we want you to know that there is light at the end of the tunnel and we are here to help. If you are just in the information gathering stage, we are glad to offer you a free consultation where you can find out if bankruptcy is the right decision for you. Deciding whether or not to file will come down to your assets and liabilities, your source and consistency of a monthly income, and what kinds of debts you currently have.