Well-known businesses and famous individuals have filed bankruptcy in order to reorganize their business and personal finances and get a fresh start. A Chapter 7 or Chapter 13 or a Chapter 11 bankruptcy can become a new beginning for families hit by job loss or divorce or businesses hit by hurricanes, floods or the economic downturn.
You are not alone and are certainly not the only one to file bankruptcy. In the U.S. every day, more than 4,000 people file bankruptcy.
Bankruptcy has evolved since biblical time. It began sometime to Italy between the 9th and 14th Century. In world history international capital markets recognized bankruptcy as far back as the mid-1500’s. England created bankruptcy laws in the 16th century.
The United States’ history of bankruptcy as an economic relief began in the 1800’s. The bankruptcy law was enacted by Congress in 1800 and repealed in 1803. Bankruptcy filing was then reenacted in 1841 and once again repealed in 1843. When the civil war began the United States was under economic upheaval that would force Congress to pass another bankruptcy law in 1867. All of these laws included a bankruptcy discharge for unpaid debts. In 1867 the bankruptcy code included the protection of corporations.
Famous People Who Filed Bankruptcy
President William McKinley, Wolfgang Amadeus Mozart, Thomas Jefferson, Mark Twain, Charles Goodyear (Goodyear Tires), artist Rembrandt, Milton Hershey (Hershey’s Chocolate), President Ulysses S. Grant, Stan Lee (Spiderman creator), Michael Jackson, broadcaster Larry King, investor Donald Trump, entertainer MC Hammer, boxer Mike Tyson, Henry Heinz (Ketchup) and many thousands of other famous and well-known people filed bankruptcy.
The clean financial and economic slate allows a chance for a “do-over” and can turn a business or a family or an individual’s livelihood completely around for the better.
The ability to rid hundreds of thousands or millions in debt seems almost unreal but thankfully, the legal system provides an opportunity when done right to restructure, restart and refresh what used to be a horrible or difficult economic status.
The list off well-known and everyday brands that have filed business and gone on to secure and successful economic and historic standing is endless. But media headlines can announce a bankruptcy and produce an air of shame and embarrassment. This is unfounded because bankruptcy is a purely economic issue and is not reflective of quality or lack of quality in a business or in a brand.
Causes of Bankruptcy
A simple and innocent yet devastating and dire financial situation can cause a business to go bankrupt. Changes in laws, changes in economy, demand and supply can ruin a business, no matter how seemingly popular, in a short amount of time.
Technology, increased production costs, unavailable goods or ingredients or supplies can send a business into a downward spiral that cannot be repaired without bankruptcy. Bad weather can effect produce and crops; outbreaks of animal illness or spoiled or contaminated food can ruin and effect entire industries from farming to restaurants to mom and pop diners.
The same is true of a family or individual’s economic standing. Job loss, layoffs, hiring cutbacks or wage freezes, divorce, severe illness and the ensuing medical bills can cause a person or family to have to file bankruptcy.
Florida is No. 2 in the Nation in Bankruptcy Filings
Currently, Florida is No. 2 in the nation for bankruptcy filings behind California. So the next time you worry about anyone finding out that you had to file bankruptcy, forget it. Your boss, co-worker, neighbor, pastor, friend or relative may be in the same bad financial situation that you are. You don’t think less of them; you think that they may have had a tough or rocky financial or economic loss.
“Many people often tell me they’re afraid to file bankruptcy. Don’t be,” said Roddy Lanigan of Lanigan and Lanigan in Winter Park, Florida. Lanigan did a video which can be seen at the LaniganPL YouTube Channel called,“Don’t Be Embarrassed to File Bankruptcy.”
“It might be the best thing for you. Many good people have filed. Many successful people have filed. Walt Disney, Henry Ford, Abraham Lincoln. If you feel like you need a bankruptcy consultation feel free to contact me at the Lanigan and Lanigan in our Winter Park office. My phone number is 407-740-7379.”