Texans who are dealing with financial challenges might not know where to turn to try and get their problems under control. The concept of a bankruptcy filing is often viewed as an attempt to get away with not paying one's debts. However, for individuals who are struggling with debt, a Chapter 7 bankruptcy is a legal method to clearing one's debts and getting a new start to get back on stronger financial ground.
Sometimes, it is necessary and there are other issues at play in a personal or professional life that need to be straightened out.
Recently, a local politician filed for Chapter 7 bankruptcy. Ron Reynolds made this decision due to the financial and legal issues that he is confronting. The State Representative says in his filing that he owes his creditors more than $1.3 million. Included in that total is $3,000 in unpaid tolls. Reynolds, who represents Missouri City and is a part of the Democratic Party, asserts that he has earned $4,000 in 2016. That is in comparison to his stated earnings of $181,000 in 2015.
Reynolds has also had legal problems along with his financial travails. He was convicted of soliciting clients illegally for his law practice. The case is under appeal. In addition, Reynolds was ordered to pay more than half-a-million dollars to a former client when it was found that he had not compensated her for a settlement. He plans to remain as a representative as he moves forward with the Chapter 7 filing and handles his other legal issues.
While this might seem to be a complicated case involving a politician and attorney who has run into financial trouble, it is not unusual for a person to face a litany of different issues and feel the need to consider filing for Chapter 7. Understanding the details of a Chapter 7 filing and how it can be beneficial is imperative, especially for those who are facing legal problems along with overwhelming debt. Consulting with an attorney can provide information and guidance as to whether Chapter 7 is the right option.
Source: abc13.com, "Texas Rep. Ron Reynolds Declares Bankruptcy," Kevin Quinn, Sept. 10, 2016