With uncertainty still looming over the recovering economy, it can be easy for an individual to find themselves behind on their financial obligations. Even those who have made a fortune in their professional life can face a wide range of financial struggles that can put their well being at risk. In a recent case, the founder of CNET, Halsey Minor, who sold his company for well over $1 billion, has filed for protection under Chapter 7 of the Bankruptcy Code in a California federal court.
Following Minor’s sale of CNET for $1.7 billion in 2008, he has run into financial difficulty with several ventures he undertook. Minor has also become embroiled in legal battles over real estate transactions, as well as other financial ventures that went sour. As a result, Minor filed for bankruptcy in an effort to free himself from his mounting creditors.
Minor has listed his assets as being in the $10 to $50 million range. However, despite this substantial wealth, Minor has also listed liabilities that range from $50 to $100 million. In total, Minor listed over 60 creditors to whom he is currently indebted.
Understandably, California residents typically live well when the financial times are good. However, with the fluctuating economy, there is always a risk that the financial success enjoyed at one time may not be as plentiful in the years to come. When this happens, and bills begin to spiral out of control, many may look to the filing of Chapter 7 or Chapter 13 bankruptcy as a responsible option for them to confront their current struggles once and for all.
Source: timesdispatch.com, “CNET founder Halsey Minor files for personal bankruptcy,” Nate Delesline III and K. Burnell Evans, May 30, 2013