Chapter 11 Bankruptcy Wiki

Arizona Rep Ruben Hinojosa Files Part 11 Bankruptcy
Ruben Hinojosa, an eight-term Democrat from Arizona, has presented Piece 11 bankruptcy after a $2.6 thousand arrangement winning prize was compressed against him.“I have presented for bankruptcy protect under Topic 11, Piece 11 of the Joined Declares Value,” Hinojosa said in a properly published record.

“My bankruptcy was the result of the company business loan I individually verified for my family business, H&H Beef Products Co., Inc. (herein “H&H”), when it was doing well in economical conditions.

Although over the last 14 years, I had no dealing with liability or problem of H&H,I you will find in economical conditions required on a financial organization history of credit of H&H when it was required into bankruptcy due to the current overall economy and economical market situation.

”Hinojosa added: “I have done everything possible to avoid bankruptcy protect to no receive. The lending company debt of H&H was more than I could handle in economical conditions. It is my true desire to leave bankruptcy protect as soon as possible.”

Hinojosa individually guaranteed a business mortgage.  When that business mortgage was released operating enterprise bankruptcy, the lenders went after him.Like most People he wanted to satisfy his repayments to pay the financial debt, but who can afford to pay a $2 million financial debt while only earning $200,000 a year?It’s quite telling that Hinojosa carefully makes it clear that he was not over the businesses of the business.

Many people incorrectly assume that because a business goes into bankruptcy that they somehow failed to manage their business correctly.  But the truth is that sometimes economic forces are mostly responsible for a changeable need to seek bankruptcy relief just as Hinojosa later suggests.

Debtors who individually guarantee loans must be prepared for conditions such as the one faced by Hinojosa.  Just because you discharge the financial debt operating enterprise bankruptcy doesn’t mean that you will automatically be individually free from the financial debt.


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