Mitzi Osborne, the widow of Jennings Osborne, a renowned Little Rock businessman, has filed for a Chapter 7 bankruptcy. According to the bankruptcy petition, Ms. Osborne owes $1.2 million and has approximately $1.5 million in assets. However, during her initial Chapter 7 filing, Ms. Osborne reportedly excluded a few of her financial details. In the months following her husband’s death, the family dealt with financial troubles that have now culminated in the Chapter 7 bankruptcy filings. For many people in the Little Rock area, the bankruptcy filing comes as a shock, as Osborne was viewed as one who seemingly had a limitless supply of money. But now the philanthropist is in a financial dilemma of her own.
Understanding the Chapter 7 Bankruptcy Backdrop
In her Chapter 7 filing, Osborne listed her Little Rock homes as the family’s largest assets at approximately $1.3 million. However, though these are the biggest assets, they’re perhaps the largest liabilities in the bankruptcy case as well. The Metropolitan National Bank has approximately $400,000 in claims against the Little Rock Homes. The Chapter 7 petition also includes $50,000 in medical debt that was accumulated to treat Jennings Osborne, who passed away at the age of 67.
Though she doesn’t receive a consistent monthly income from the business, Ms. Osborne listed Osborne Research Center LLC as her place of occupation. Unfortunately, the business has been operating at losses since 2011, and her only consistent income at the moment is the $2,200 she receives monthly from Social Security. In an effort to prevent the Chapter 7 bankruptcy, Ms. Osborne sold 31 vehicles for $280,000 to help dig the family out of debt. Now, however, Ms. Osborne is using the Chapter 7 filing to put this difficult time behind her, and look forward to the financial future that remains ahead.