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.
According to a recent report, the bank official filed Chapter 7 bankruptcy due in large part to the $4 million he owes his former employer. In addition, he owes several other creditors in the nearly $5.5 million. In comparison to his debt, the man listed assets valued at just $510,146.
Like some in California, the man may have run into financial difficulties as a result of the recent real estate crisis. Just prior to the crisis, the man and several partners were in the construction industry. As a part of the construction deals in which he was involved, he took out loans to pay for development projects. These were some of the loans that are now included in his Chapter 7 bankruptcy filing.
The recent economic downturn hurt many people in every corner of the country. As property values fell, consumers lost confidence and employers began to issue layoffs, many found that they loans that they simply could no longer pay. As this story shows, this can even happen to people who are financially savvy. When that happens, it can be a benefit to a person to the protection of Chapter 7 bankruptcy in order to eliminate debt in an organized fashion and discover a fresh financial start as the national economy begins to improve.
Source: The Times-Tribune, "Former FNCB director refiles for bankruptcy," David Falchek, Jan. 10, 2013