Founder of Lithe Method Workout Declares Bankruptcy

by San Antonio Attorney

Followers of Lithe Method and its founder Lauren Boggi were shocked lately when Boggi told everyone that Lithe Method had ceased, because of a chaotic legal dispute.

In December, Boggi notified clients that the landlord of its unopened outpost in New York had secured more than $400,000 judgment against her and took her assets and bank accounts.  She then filed for personal bankruptcy

The 39-year-old fitness and lifestyle expert filed for Chapter 7, claiming that she has about $50,000 in assets and $1 million in liabilities.

Chapter 7, which is basically a “liquidation bankruptcy,” requires a debtor to sell off certain assets in order to repay his or her creditors.  This process is typically used to wipe out debt and get a financial fresh start, although that fresh start has some consequences.

Filing for bankruptcy reflects on your creditor report for a certain period of time.  Also, everytime you apply for credit, you’ll be asked if you filed bankruptcy in the past.

Despite closing down Lithe Method and filing bankruptcy, Boggi still advertises and runs Lauren Boggi Active, which is a virtual workout studio that she started last July.  In an interview, Boggi said Lithe Method is a different brand from the LB Active, because the latter was not made to be a virtual workout.

Lithe Method was certainly the largest fitness brand in the whole region, but it would probably be difficult for Boggi to obtain a business loan.  According to her attorney, the effect of Boggi’s bankruptcy is really unsure for now.

A Chapter 7 bankruptcy case involves selling the debtor’s nonexempt assets and paying creditors with the proceeds of such assets.  A debtor should consult a San Antonio Chapter 7 Attorney to find out if he or she is qualified for relief under this type of bankruptcy.

Leave a Comment

Previous post:

Next post: