Over the past few years, many people in California have suffered financial losses as a result of the economic recession that has gripped our nation. In fact, unemployment remains at a high rate and many continue to have difficulty paying their mortgages for homes that are not worth what is owed. These facts have led many in our state and elsewhere to consider a personal bankruptcy filing.
California readers may be interested to learn about a recent bankruptcy filing by a banking official who suddenly became overwhelmed by debt. The man at the center of the Chapter 7 bankruptcy case is a former board member of a local bank operating in his home state. In fact, the man lists the bank as one of his largest creditors in the case.
The holidays are a time when many in California and elsewhere find that they have spent more money than they intended. This can happen because of a present that was on sale or an extravagant party that was thrown. When a person finds that they have unmanageable debt because of the spending frenzy that can occur during the holiday season, they may wish to seek ways to recover economically.
California is one of the states found to be among the hardest hit by the real estate crisis that struck during the recent recession. Because of this, those in our state who find that they have homes that are not worth what they owe may find that they qualify for a federal program designed to help. The program can reduce the principal of a loan if a person qualifies for the program. For some, this program may be an avenue to stop foreclosure and avoid a personal bankruptcy.