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Many situations can lead to the necessity to file bankruptcy

Public officials often have to make public financial disclosures. An experienced Cincinnati bankruptcy attorney knows that the reason people seek bankruptcy protection vary greatly from situation to situation. A public official in the South filed for chapter 7 bankruptcy relief in January. Recently, the county commissioner released a letter detailing the reasons she and her husband sought bankruptcy protection to set the record straight.

The difficulty for the public official was the court record showing $270, 870,671 in unsecured debt. The county commissioner decided she should explain to the commission and county residents that she and her husband did not run up $27.8 million in debt singlehandedly. The vast majority of the debt arose from a business partnership the commissioner's husband had been involved with and provided personal guarantees for a number business loans the partnership had taken out. Even though he resigned from the business partnership prior to the loans going into default, his personal guarantee followed him after he left the business.

The business partnership was originally created in 2006. The business was engaged in real estate development and much of the debt involved mortgages on properties. The business partnership expanded through a franchise agreement to develop properties in the region. The commissioner's husband subsequently resigned.

In December 2010, the husband started to receive notices from creditors about defaults on loans. He looked into the situation and learned the extent of the debt that the partnership was carrying. He also learned that another partner in the group was filing for bankruptcy.

The couple discussed their options. The husband and wife had their own personal property and no longer were associated with the business. The couple decided to seek bankruptcy protection to save their own personal investments, including their home.

Source: Bristol herald Courier, "Sullivan County Commissioner details $27.8 million bankruptcy filing," Mac McLean 15 Apr 2011

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