Former winemaker and Virginia Socialite Patricia Kluge and her husband filed for bankruptcy protection today. They are filing for personal bankruptcy but most of their debts are business related.
The document filed in Lynchburg Virginia listed their personal assets between $1 million and $10 million with liabilities between $10 million and $50 million. Kluge attempted to settle with banks but the negotiations failed. They already lost their winery business, a mansion and a subdivision under development to creditors. The Kluge’s estimate they have 59 to 99 creditors.
Kluge started the winery in an economic downturn, which was eventually sold to Donald Trump. Kluge was known to hold elaborate parties in the 80s.
Even the wealthy can find themselves underwater in their personal finances. A trustee will be appointed to handle the sale of Kluge’s assets, which will be divided among creditors to pay off the debts.
The advice of a bankruptcy attorney can help any person facing financial ruin. There are a number of ways in which an individual or business can structure their bankruptcy.
The Kluge’s are filing for Chapter 7 which requires the liquidation of assets to pay off creditors, but other structures are available, like Chapter 11 or Chapter 13. A bankruptcy lawyer will know which structure will work best for their client. Bankruptcy can be tough but those who find it necessary can get back on the path of better finances and bankruptcy lawyer is a valuable tool to make that a reality.
