A common misconception that many in Mississippi may have regarding debt struggles is that they only plague those who are not perceived to be “well off” financially (as the assumption is they lack the money to pay their bills). In reality, debt can be a problem even for those who rank among the higher classes of income earners.
This fact reveals that debt troubles are not simply associated with a lack of money. Rather, they can befall a person for any number of different reasons.
Popular local restaurants casualties of bankruptcy
The recent case of a popular Ohio chef illustrates this point. The man’s properties (one, in particular) held national acclaim. Yet last year, the chef abruptly closed two of his other locations amid debt struggles. His and his wife’s personal bankruptcy petition last month was on the heels of the closing of his most popular restaurant.
A review of the documents submitted when he filed showed that he faced a series of debts from contractors and food vendors (many of whom had commenced legal action against him). His stated hope is to keep many of his personal assets (e.g. his home and some of his vehicles) while presumably leaving other personal items and business assets open for liquidation or repossession.
Escape from mounting collection efforts
In many cases, bankruptcy presents the most viable option for climbing out from under a mountain of escalating debt that is further compounded through collection efforts. Securing the protection it provides may help people to re-establish themselves financially while also settling a portion of their liabilities. Yet it is not a decision that one should quickly rush into. Those considering it may first want to consult with an experienced bankruptcy attorney to review their options.