New Jersey personal bankruptcy can come when business fails

Like many businesses in New Jersey, for several years a tutoring business was successful for a man in another state. However, after competition began to eat away at the market share of the business, the owner found that he was no longer able to make ends meet. This led to his seeking to first obtain private loans from friends and family and then to a filing of personal bankruptcy.

In fact, according to information filed in the personal bankruptcy, the man who owned the tutoring business owed more than $1 million in private loans at the time of the Chapter 7 filing. In addition, he owed a total of 50 creditors an estimated $2.7 million. Many of these debts may be discharged as a result of the personal bankruptcy chapter that the formerly-successful business owner recently filed.

As is the case with many businesses in New Jersey, the business in this personal bankruptcy matter began to fail after a competing organization took market share. Though it is unclear exactly how much business was lost to a competing tutoring company, it is clear that the man could no longer pay what he owed with his income. At the time of his bankruptcy, he disclosed assets totaling a value of $603,000, including real estate and personal property.

Owners of a business often seek to obtain private loans and other financing to keep a business running when things begin to go bad. Unfortunately, in many cases, the business is beyond saving and the owner finds that they owe many people large sums. This could lead to a decision to file for a personal bankruptcy. The good news, however, is that such a filing can often offer an individual a fresh financial start for the future.

Source: Gainesville.com, "TutoringZone co-founder Matthew Hintze files for personal bankruptcy," Anthony Clark, Dec. 18, 2012

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Get Our Help Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Cherry Hill Office
1060 North Kings Highway,Suite 333
Cherry Hill, NJ 08034

Toll Free: 800-759-0767
Phone: 856-254-2196
Fax: 856-414-1230
Map & Directions

Philadelphia Office
Suite 1505
1515 Market Street
Philadelphia, PA 19102

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions

Mount Holly Office
1848 Burlington-Mount Holly Rd
Mount Holly, NJ 08060

Toll Free: 800-759-0767
Phone: 856-254-2196
Map & Directions

Philadelphia Office
7909 Bustleton Avenue
Philadelphia, PA 19152

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions