With plenty of people needing academic assistance a Florida man and his partner figured a tutoring business would be a good idea, and it was. The company had a reasonable amount of success, and the first partner bought out the second partner. This began to be a problem when that partner started a competing business, and with well over $3 million dollars in debt, the first partner was forced to file for bankruptcy.
Since he filed for Chapter 7 bankruptcy, the man is not required to pay back the majority of his debts, however he plans to try and pay back investors anyway. As for the business, it was sold and restructured under new ownership and the one time owner is now employed as a tutor.
While stigma suggests that a bankruptcy filing suggest a lack of responsibility, sometimes it can happen because someone took a financial risk hoping it would lead to something bigger and better, but ultimately, things did not go as planned. Clearly this can happen to virtually anyone who has taken such a risk. Recovery from bankruptcy can be long and tedious, but chasing bills that are overwhelming can be even worse.
If you’re overwhelmed financially because of an investment that didn’t pan out quite the way you expected, a bankruptcy attorney may be able to help you take a fresh look at your finances and budget to help you determine if there is a reasonable way out of your debt, or if filing for bankruptcy might be the answer for you.
Source: The Gainesville Sun, “TutoringZone co-founder files for personal bankruptcy,” Anthony Clark, Dec. 18, 2012