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Horror story shows how bankruptcy can be a financial reset

| Jul 9, 2021 | Uncategorized

Over the past year or two, if anyone has turned on the news or read a news article, they have likely read about various businesses and high-profile celebrities filing for bankruptcy. And, unfortunately, many, if no most, of those articles paint the bankruptcy process in a negative light or that somehow one’s bankruptcy filing is somehow a failing. In reality, though, bankruptcy is simply a societal backstop from destitution and a way for people to get a fresh financial start. This is exemplified by the plight of one businessman.

A negative online review leads to financial ruin

The Texas man hired a company to handle some of his business needs. He claims that the company made errors that cost him about $8,000. As a result, he left that company a bad online review. In turn, that company sued the man, personally, though, the man claims he never received notice of the filing. This led to a default judgment against the man directly, not his business, which means he is now on the hook for hundreds of thousands of dollars to the company that sued him.

The bankruptcy backstop

Of course, the man has filed an appeal, but to stop the financial bleeding now, he has decided to file personal bankruptcy. This is because his appeals case could take years, but that default judgment is being collected now against him personally. And, while our dear readers are likely outraged at this man’s plight, it does offer an example of how bankruptcy can act as a backstop. Once he files bankruptcy, everything stops. The company that sued him can no longer collect anything until the bankruptcy judge allows it. All collection attempts, including phone calls, emails, mail, etc. must stop. Any legal action the company may have pending to garnish wages or take property must also stop.

A fresh financial start

Regardless of how the man’s appeal goes, his bankruptcy will offer him a fresh financial start. Indeed, this is the bright side he has taken away from the entire ordeal is the fact that his bankruptcy will give him a financial do-over. And, for New Port Richey, Florida, residents that feel like their back is up-against-the-wall, with bills piling up and no way to pay them, contact a bankruptcy attorney.

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