A personal bankruptcy of the Chapter 7 liquidation type has been filed by Halsey Minor, best known as a founder of the CNET website. He took the fortune he earned with it and invested much of it in real estate after selling CNET to the CBS broadcasting company for around $1.7 billion. When the market for real estate crashed in 2008, he lost a great deal of money.
Since then, he has been embroiled in a number of court battles. He is seeking protection under the bankruptcy code from creditors, including several law firms and an ex-wife, as well as his current spouse. The papers he filed in court estimate his current holdings at between $10 million and $50 million, but this is offset by debts estimated as somewhere in the neighborhood of $50 million to $100 million.
He made investments of approximately $35 million in a plantation and also put money into the development of the Landmark Hotel located in Charlottesville in the downtown area. That project subsequently failed. Tax authorities in California claim Minor owes over $10.8 million for franchise taxes that remain unpaid.
He is also reported to owe $18.5 million in unpaid federal income taxes for 2011, while only $13,000 for 2013. These debts were the subject of filed federal tax liens. In a Chapter 7 bankruptcy, the assets of a debtor are sold off to satisfy the debts owed to creditors to the extent possible. Some assets are exempt from seizure, though, and the debtor is entitled to those keep free and clear. After whatever debts can be paid, in full or part, are paid, any remaining debt is then discharged or forgiven.
If you are facing insurmountable debt, consider contacting a Maryville, Ohio, bankruptcy attorney. You will learn about your options and your attorney can advise on which bankruptcy is best for your situation.
Source: TimesDispatch.com, "CNET founder Halsey Minor files for personal bankruptcy" Nate Delesline III and K/ Burnell Evans, May. 31, 2013