Even poorly executed business deals that were made decades ago can provide legal problems for former business owners. This was the case for William and Patricia Millard, who recently filed for personal bankruptcy after finding out they owed unpaid interest and taxes on the sale of their business. William Millard is the founder of the ComputerLand retail chain.
The $118 million judgment, which included unpaid taxes and interest, came as a surprise for the couple because it dated back to 1987 when they sold the computer chain. Millard was once thought to be one of the richest people in the United States. While the judgment was filed against them in 1994, it wasn't until 2011 that the United States court system was able to enforce it.
The amount of the unpaid taxes, coupled with the fees associated with contesting the judgment, has placed a heavy burden on their finances. The couple turned to bankruptcy as a solution for their financial problems. The Millards are currently petitioning the United States court system for their purpose of keeping their assets.
The couple claim that they were completely unaware of the additional taxes allegedly owed following the sale of ComputerLand, and had they been aware of the judgment sooner, they would have contested it. By declaring bankruptcy, they are protecting themselves from further financial stress.
Regardless of whether financial issues include unpaid back taxes, or other types of unpaid debt, bankruptcy is an excellent alternative. It offers protection and allows individuals to avoid facing the foreclosure of their homes and other financial losses. A qualified attorney can provide the necessary guidance to determine if bankruptcy is a viable option.
Source: CayCompass.com, "Court grants ex-ComputerLand CEO William Millard’s personal bankruptcy application," Michael Klein, June 19, 2013