The former owner of Printing Methods Inc. filed for Chapter 7 bankruptcy Aug. 8 in U.S. Bankruptcy Court in Rochester. At the time of the bankruptcy, he had debts of $3.95 million and assets of $537,000. The personal bankruptcy filing comes just months after his company had finished going through Chapter 7 bankruptcy. The company was shut down in 2010 amid much controversy over failing to pay workers.
Much of the success of the company was attributed to the purchase of Remley & Co. Inc. in 2001. The owner of that company secured a judgment against the man for approximately $440,000 in 2012. Other debts included in the personal bankruptcy include two loans to the Small Business Association totaling approximately $328,000. The loans are reportedly secured with his home.
As part of the bankruptcy filing, the man says that he is unemployed and collects $1,755 per month in unemployment insurance. However, he was listed as vice president of sales and marketing at Lola Packaging Inc., which was located at his home address. The owner of the company is listed as a co-debtor to M&T Bank, which is owed $493,000. Income listed for that business is $3,300 per month.
Chapter 7 bankruptcy may be able to provide a fresh financial start for those who need it. This type of bankruptcy enables individuals or companies the ability to liquidate assets to quickly resolve debt issues. A bankruptcy attorney may be able to help those who are looking for a way to get out of debt while potentially protecting some of their assets. Individuals who are contemplating a bankruptcy filing should be aware of the credit counseling and other applicable requirements.
Source: Rochester Business Journal, “Ex-star CEO files for Chapter 7”, Will Astor, September 05, 2014