From Billionaire to Bankrupt
In 2008 a man by the name of Halsey Minor was making the sale of a lifetime. He was selling his company “CNET Networks, Inc.” to CBS for $1.8 billion. After all was said and done Mr. Minor netted $200 million in the sale of his company. Even before this sale took place Halsey Minor was doing well financially. In 2001, Fortune ranked Minor as the 34th wealthiest American under the age of 40, with a net worth of $180.2 million. After the sale in 2008 Mr. Minor began investing in large real estate ventures that unfortunately for him, went sour.
Fast forward to 2013 and Halsey Minor has filed Chapter 7 bankruptcy because he is $100 million dollars in debt and does not have the money to pay it back. How could this possibly happen? That’s the question that thousands of Americans ask themselves every day when they sit down and calculate their income vs. the amount of debt they are in. Overwhelming debt does not happen overnight, but don’t let that get you down; there are solutions that can finally give you a light at the end of the tunnel.
Mr. Minor is the exception to the typical type of individual who needs to and eventually files Chapter 7 bankruptcy. In most cases it filing Chapter 7 is beneficial for individuals or families with low incomes and high amounts of unsecured debt such as credit cards and medical bills. Because Mr. Minor has luxury items like vehicles the court will most likely liquidate them in order to pay back some of the creditors that he owes. Granted, he does not have the entire $100 million that he apparently owes so there will be some creditors that are empty handed.
Most debtors who file Chapter 7 bankruptcy do not have an assortment of luxury items that the court can sell to give money back to the creditors and these cases are called “no asset bankruptcies.” In most cases the debtor that files a Chapter 7 bankruptcy can keep their vehicle and home safe from liquidation by staying current on the payment.
Chapter 7 bankruptcy is sometimes referred to as the “fresh start” bankruptcy because in most cases it can completely eliminate the common types of unsecured debt, thus giving the debtor a fresh financial start. Chapter 7 bankruptcy is the most common form filed in America today not only because of its simplicity, but also because the majority of Americans in debt do not have the excess monthly income to pay their debts back each month.
If this blog reminds you of anything, let it be that you are not alone in your struggle with debt. As you can see debt issues happen to everyone, even billionaires! The important key to remember is that even when you feel like you’ve let the debt go too far, there are still solutions. Call a local bankruptcy attorney today so ask about how a Chapter 7 bankruptcy could help you!