The healthcare think tank founded by Newt Gingrich filed for bankruptcy earlier this month, it was learned on Wednesday. Hopefully, the filing will have no effect on Gingrich's campaign for the Republican nomination for president. We do not say that because we necessarily endorse him or believe in his views; we say it because bankruptcy is not a sign of failure. It is crucial that Ohio residents understand that these days, bankruptcy is just an indication of how hard it is to thrive in this economy.
The Gingrich Group filed for Chapter 7 bankruptcy in Atlanta earlier in April. In its filing, it claimed it has liabilities up to $10 million and only $100,000 in assets. That seems to show that The Gingrich Group held on until the last possible moment and only filed when there simply was no other option.
Now, in one sense, that approach is understandable. Individuals and small business owners do not want to let go; they want to succeed and often are willing to fight it out until the bitter end.
However, one drawback of that plan of action is that by the time it is apparent that bankruptcy is the only way out, the would-be filer has no other options. Bankruptcy is nothing to be afraid of, but it is a serious step and ideally is one you would only take when you are fully informed and are comfortable with what you are doing.
If you are in a period of financial distress and you do not see it getting better any time soon, you might think about meeting with an attorney who practices bankruptcy law. This attorney can talk to you about the process and you may walk away with a better grasp of your options and possible courses of action.
Source: The Gazette Times, "Gingrich's think tank files for bankruptcy," April 5, 2012