By: John Clark
February 22, 2011
Former real estate developer and South Carolina state senator, Arnold Goodstein, will get what his bankruptcy attorney referred to as a "fresh start," as his bankruptcy has recently been discharged and his debts cleared.
Goodstein's creditors will not be able to pursue collection of the $61 million in liabilities that he had listed on his original June 2010 bankruptcy filing, according to the Charleston Post and Courier. No creditors objected to the discharge of the Chapter 7 bankruptcy, court documents reveal, but the bankruptcy remains open, Goodstein's attorney said, as a trustee is still determining if Goodstein has any assets left to sell.
The bankruptcy attorney also said that most of his clients' debts came from his involvement in the real estate bubble. His company, Summerville Homes, began to experience financial difficulties in 2007 and ceased operations in 2008 after experiencing dramatically decreasing sales.
"He was hardly by himself in this perfect storm ... He just got caught up in it, like other developers did," Goodstein's bankruptcy attorney explained.
When a consumer files for Chapter 7 bankruptcy, non-exempt property is liquidated to repay creditors. At the completion of the bankruptcy proceeding, debts are discharged and creditors can no longer attempt to collect on them.