We’re not advocating for any candidate…and there are no Massachusetts bankruptcy ballot initiative. So we thought we’d take this timely opportunity to point out that after a bankruptcy you can do (almost) anything. Even run for office.
Take Wilbraham Selectman Robert (Bob) W. Russell, for example. He’s running for the State Senate notwithstanding a federal chapter 7 bankruptcy he filed, and resolved in 2013. The seat he is running for covers Wilbraham, and parts of Springfield and East Longmeadow.
What Debts Can Be Discharged in Bankruptcy?
Mr. Russell was able to discharge all of his personal and business debts, keep his home cars and personal property. Let’s look at what happened.
According to Mr. Russell, he inherited a business. Unfortunately the business, a chain of photo developing shops, did not keep up with the times. That chain with up to 10 venues went out of business.
In addition, Mr. Russell was attempting to run a family owned restaurant. The restaurant also fell victim to the times: the big chain restaurants captured the market. He defaulted on the $222,000 business property loan and the taxes on the property. Apparently he was using the loan on the property as a line of credit, with no payments, ever. Nevertheless, he was able to discharge that mortgage and the property went into foreclosure.
Mr. Russell was also able to discharge $60,000 in consumer credit card debt. So long as their income was within the federal guidelines, they could have discharged more debt as well.
What Assets Were Kept in the Bankruptcy?
Our understanding is that Mr. Russell’s assets were a home valued at almost $400,000 with a $222,000 mortgage, three vehicles and a sailboat. Ironically, the boat was named “Avalon”, after the magical island in England where King Arthur was taken to recover from his war wounds. It’s also where the famous sword Excalibur was forged.
In any event, under the bankruptcy rules, Mr. Russell was able to keep his home, his vehicles and his personal property, including electronics, jewelry, and clothing. Like (almost) everyone else, he needs to continue to pay his $88,000 in student loan obligations. However, the bankruptcy discharge will entitle him to a fresh start in his personal financial life and, he hopes, in politics.
Did the Creditors Receive Anything?
Mr. Russell’s sailboat, valued at $40,000 was forced to be sold per Bankruptcy Court Order. However, when you look at the numbers, it is illustrative of how bureaucratic the process can be: administrative and attorney fees were paid first and the creditors shared a net of only$8,000! Apparently, some additional monies were also available for creditors.
Retain An Experienced Personal Bankruptcy Lawyer
Mr. Russell’s story is more public because he is running for office. However, his circumstances are not that different from many of our clients: times change, an unfortunate business decision is made, or an illness stops someone from being able to work. Filing personal bankruptcy gives you a fresh start.
Attorney Neil Burns has represented regular folks, and a few politicians, in bankruptcy court, for 29 years. He has the experienced to carefully guide you and your family to discharge your debts.
