using calculator

Oil company owner files for Chapter 7 bankruptcy

As some Arizona residents may be aware, financial difficulties can plague anyone. At the heart of the matter is the fact that when people spend more money than they earn, they find it difficult to make ends meet, especially if they owe creditors money. One of the federal and state protections offered to them is filing for bankruptcy, an option an oil company's owner recently availed when he filed for Chapter 7 bankruptcy because his liabilities outweighed his assets.

The businessman's company suddenly shut down last month, leaving prepaid customers without their purchases or a refund. The businessman had guaranteed thousands of the company's debt, with between 50 and 99 creditors now seeking repayment $1.25 million from the man and his wife. This includes secured and unsecured debt. In secured debt, the couple has two mortgages out on the family home.

The couple filed for joint bankruptcy, claiming they have around $703,000 in assets. Their personal property includes furniture, a watch, two televisions and other electronics. When someone files for bankruptcy, they may be able to not only put an automatic stay on foreclosure hearings, but also may be able to retain ownership of some personal items, such jewelry, furniture and even an automobile, up to a specific price limit.

In the papers filed, the couple claims their expenses exceed their income by around a $1,000 a month. Some Arizona residents may find their debt exceeds their income by even less, but the end result is the same, people are unable to make ends meet. Filing for bankruptcy is one way they can wipe out most of their debts and get a new start for the New Year, with their financial slate wiped mostly clean.

Source: Leigh Valley Live, "Richard Norton, owner of Norton Oil Co., files for Chapter 7 bankruptcy," Mathew Bultman, Dec. 18, 2013