An exciting part of being a newlywed couple is choosing furniture pieces for the new home. One such newlywed couple was very disappointed when the items ordered and paid for at a retailer’s showroom were not supplied before the retailer filed for the protection of Chapter 7 bankruptcy. They were not the only Michigan clients experiencing such disappointment.
The owner of the business explained that he had applied for a loan to tide him over, but was unable to advise clients of his intent to file for bankruptcy until the loan application was denied. He admitted that clients would order and pay for furniture pieces that had to be manufactured in another state. However, he only paid the manufacturer once the items were delivered to him. In many instances, he related, the clients’ funds were spent before the ordered items were delivered to him.
It was reported that several of the ordered items have been manufactured and will be available to the people who ordered it. The bankruptcy trustee described how the retailer’s debt will be eliminated through a process of liquidation, whereby business and personal assets that are regarded as non-exempt by the court will be sold. The trustee stated that he had made arrangements with an individual who was prepared to buy all the retailer’s assets, including personal and showroom assets. Funds obtained from this sale will firstly be applied to refunds of customer deposits, and the balance will be distributed to creditors and government entities who are owed money.
Michigan residents who have overwhelming debts and no means to pay their creditors may want to research the laws related to bankruptcy. Chapter 7 bankruptcy may discharge all unsecured debts and protect the applicant against foreclosures, repossessions and lawsuits, along with other creditor harassment. The option to apply for such protection under the bankruptcy laws may assist such individuals in preparing for a new start and a way to re-establish a secure financial future.
Source: mlive.com, “Customers of Ann Arbor’s Naked Furniture demand answers during owner’s bankruptcy hearing in Flint“, Jeremy Allen, March 28, 2014