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Businessman files for Chapter 7 bankruptcy due to lawsuits

For some people in Escondido and elsewhere, planning an approach toward dealing with personal debt can seem like an insurmountable obstacle. Although the national economy occasionally shows flickers of recovery, there are still millions of people throughout the country who are struggling with job loss, unexpected medical bills and credit limits being pushed to the max. A West Coast business owner, who apparently had extensive dealings in California, seems to have found himself in a similar position, and he recently filed for Chapter 7 bankruptcy.

According to the reports, this businessman, the owner of a financial services company, filed for Chapter 7 after being slammed with 19 civil lawsuits which allege that he did not pay the proper payments owed on promissory notes. All of the lawsuits were filed in the San Luis Obispo Superior Court.

The businessman's bankruptcy filing indicated liabilities of approximately $22 million against assets of about $3.7 million. He owns property and homes in Washington state and Grover Beach.

There are many different reasons why an individual or family may find themselves in a position to contemplate a bankruptcy filing. Although common culture would have many believe that bankruptcy comes about due to unfettered spending and living beyond one's means, that is not always the case. Unexpected events sometimes stretch a family's budget to the breaking point, and when that happens, those individuals should know that bankruptcy is meant to be a tool for the consumer -- a tool to get out from under a crushing debt burden. Whether the ultimate filing is under Chapter 7 or Chapter 13, pursuing a bankruptcy filing can lead a family that is struggling with debt back toward a brighter future.

Source: The Tribune, "Grover Beach financier Al Moriarty files for bankruptcy," AnnMarie Cornejo, Jan. 4, 2013

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