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