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Co-founder of CNET files for Chapter 7 bankruptcy

It is known by some Chattanooga residents that when a businessperson tries to invest in areas they are unfamiliar with, oftentimes it is incredibly risky. This can ultimately lead to financial issue that turn into major problems that need to be addressed formally.

This appears to be the case for Halsey Minor, the cofounder of CNET. Minor was paid approximately $200 million when he sold CNET. Since then, he has invested in various types of businesses, including some technology and art.

Minor also invested in real estate, which ended up causing him problems. When he filed his Chapter 7 petition. It included $50 million in assets, but over $100 million in debt. Since the values of those assets are much higher than can be protected in a Chapter 7 bankruptcy, they will most likely be sold to pay off some of the debts he owes, all the others are likely to receive nothing.

When a normal individual is struggling with debt, specifically personal debt, filing for Chapter 7 bankruptcy usually means they pay nothing to those creditors while receiving a fresh financial start. The only time assets are sold is when the debtor wants to sell them, such as an underwater home, or if the values are extremely high.

An individual's house, car and any other personal items are almost always completely protected when filing, as long as they are listed properly on the petition. For that reason, it is often necessary to seek out assistance to make sure the petition is filed properly. A Chapter 7 bankruptcy is also used to stop creditor harassment, especially from collection agencies for credit cards or medical bills as well as to stop wage garnishment if that is a problem for the debtor.

Dealing with overwhelming debt can cause great physical, mental and emotional stress for almost anyone. Seeking out help to deal with those financial challenges is a good way to finally get the much needed relief.

Source: Bloomberg Businessweek, "How Halsey Minor Blew Tech Fortune on Way to Bankruptcy," Dawn McCarty and Ari Levy, May 31, 2013

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
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