Believe it or not, millionaires have ended up drowning in debt. Even though, to the outside world, they are seemingly successful, their debt sometimes far outweighs the amount they have in assets. Many Pennsylvania consumers have viewed bankruptcy as the worst thing they could ever do, but on the contrary, it can lead individuals to recover from their financial situation. One man, who was an owner of an independent film company, did just that and received his second chance.
For the most part, things seemed to be in his favor until the year 2009, which came with negative outcomes for independent film companies. He apparently did not see this collapse coming and, unfortunately, he ended up owing millions in business debts with no savings to cover any of it. He eventually filed for bankruptcy and concentrated on what mistakes he could have made to end up owing so much to begin with -- and even more so, how he could turn that around.
After accepting his mistakes, he focused on rebuilding his finances by developing a film industry platform for digital distribution. He sat down with a film producer and former investor to try to secure funding for his new venture. Both individuals agreed with his request and invested $200,000. After testing it out, it was proved that his platform worked. He increased his own capital to over $3 million, plus the investors made their money back.
This circumstance is an example of how a man filed for bankruptcy and was able to get his finances back on track. In spite of the sometimes bad reputation, bankruptcy can be a great way to discharge most or all debts. It can also be one of the fastest ways to get out of debt for most Pennsylvania consumers. There are different categories of bankruptcy available -- called "chapters" -- depending on a consumer's circumstances.
Source: CNN Money, How I emerged from bankruptcy to grow a thriving company, Danny Fisher, Jan. 20, 2014