Filing Bankruptcy. Assets of $1,000. Liabilities of $2,000.000

This Michigan Brewing Company Founder is filing Chapter 7 Bankruptcy.  He lists $3200 in assets and $8,200,000 in debt.  Read that again.  Our perception of what someone owns and has is quite different from reality.  Many times, people tend to make assumptions that someone is extremely wealthy, and doesn’t have a care in the world, while the individual is legitimately swimming in debt, up to their eyeballs.   In case after case that I file, I find that people tend to disregard the fact that so few people actually have money.  Real money.  Money put aside and saved and that can be pulled out of a bank account if something actually happens.  That $1,000,000 house that your neighbor has isn’t an asset that he can take to pay something off.  It’s likely a liability with very little equity in it which is straining his/her way of life.  Of course, I am generalizing here, but it’s important that people understand that what they see, isn’t always what’s there.  More often than not, we found ourselves at a crossroads.  Do we keep up with the Jones’ and buy everything we can to keep up appearances, or do we risk looking like we don’t have enough while actually living within our means.  It’s something to think about.

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