Halsey Minor, founder of the CNET Networks Inc., was once considered one of the richest people in the United States under the age of 40. The young billionaire invested and sold several high net worth companies, including CNET, for $1.8 billion. With the proceeds of the sales, Minor made extravagant purchases and other investments. Among his most famous purchase was $15 million for the Carter Grove Plantation, located in Colonial Williamsburg, originally built in the 1700s. Now, just five years later, Minor is filing for bankruptcy protection stating that he owes more than $100 million to his creditors and, with only $50 million in assets, Minor says he cannot repay them.
Chapter 7 liquidation
In Chapter 7 bankruptcy cases, the trustee liquidates the debtor’s assets to repay creditors. However, the debtor may be able to retain some by using federal or state bankruptcy exemptions. At the end of a Chapter 7 bankruptcy case, qualified unsecured debts are discharged. A discharge releases the debtor from liability of the overwhelming debts that the debtor amassed.
Follow the bankruptcy rules or your case could be dismissed
Recently, Minor petitioned to reinstate his Chapter 7 bankruptcy case after a U.S. Bankruptcy judge dismissed it for missing a filing deadline. The court requires each petitioner to file a statement of financial affairs, which lists the debtor’s assets and liabilities. Minor’s attorney elected to file the statement of financial affairs late because he said he needed additional information in order to file a complete and correct document. If Minor’s attorney is successful, the court could reinstate Minor’s bankruptcy petition, allowing his case to move forward.
Regardless of the circumstances that led to your accumulation of debt, Chapter 7 bankruptcy may be an option for you to regain control of your finances.