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Northborough politician in Chapter 7 bankruptcy

A Massachusetts local politician who was just re-elected to a fourth term recently filed Chapter 7 bankruptcy. His personal bankruptcy follows a lawsuit that he filed against his mother and sister; unfortunately for him, his family countersued, and he wound up owing them over $200,000.

He seems to have several other legal bills, credit card debts, and business expenses. Aside from serving as Selectmen Chairman for the community of Northborough, he also owns his own landscaping business. He claims to make slightly over $2,000 monthly from that employment.

While this man has in the past bragged about his solid fiscal policies, even responsible politicians can face unexpected financial challenges in their personal lives. While some of this man's problems appear to stem from a dispute with his family, he also reports that his small business has not done well lately, bringing in only about $26,000 a year.

Oftentimes, owners of small businesses cannot count on a regular supply of income. As the business market varies, so business owner's income rises and falls. While it is always prudent for a small businessman to save money for the down months, sometimes a person will need to file a bankruptcy in order to eliminate debt and get a fresh start in his or her financial life.

A personal bankruptcy involving a small business, however, presents its own special set of difficulties. The owner will be expected to provide substantial information about the status and operations of his or her business, and he or she may be expected to turn over business records. A business owner contemplating bankruptcy will want to ensure that he or she fully understands the bankruptcy laws and procedures, as well as what might be expected of him or her during the process.

Source: MetroWest Daily News, "Northborough selectmen chief files for bankruptcy," Brad Petrishen, Nov. 28, 2012

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