Readers in New Jersey may be familiar with the music of the country group, Montgomery Gentry. The group has appeared at shows such as the 2013 Taste of country Music and has gained fame with their music. Now, one of its members has filed for a personal bankruptcy under Chapter 7.
A chapter 7 bankruptcy, in New Jersey and elsewhere, is often referred to as a total liquidation. To qualify for this personal bankruptcy, people must first submit to a means test that reviews information such as their income and liabilities. Once qualified, an individual can expect that all of their disclosed unsecured debts will be discharged and that creditors will no longer be able to make efforts at collection.
In the case of singer Eddie Montgomery, he disclosed to the court that he owed some $13.4 million in debts to various creditors. This was offset by a total of $1.9 million in assets. Many of his debts, he stated, came from a failed effort at the restaurant business. The assets of that business are set to be sold in the coming weeks.
Filing for a personal bankruptcy such as a Chapter 7 is common for people who find that they have gone through a divorce who have had a failing business, a recent article notes. In fact, some here in New jersey may have experienced very similar situations that have, like the case of Montgomery, have left them in need of the help that a bankruptcy can offer. When this is the case, they can find that they benefit from a review of the applicable rules before entering into the process to help ensure the best possible outcome.
Source: Taste of Country, Eddie Montgomery Files for Bankruptcy, Christina Vinson, Jan. 3, 2014