In California or elsewhere, when people decide to run for political office, all aspects of their lives can be made public. This is what happened to one man when he first became the Mayor of his home city and then sought re-election. During his political life, the man at the center of this case filed for a personal bankruptcy.
When people in California find that they are unable to repay the debts that they owe, they most often seek solutions. Thought there are several options for these people, many find the best choice is the filing of a personal Chapter 7 bankruptcy. Such an action can result in the discharge of many, if not all, of the filing individual's unsecured debts.
In California, people are familiar with the fact that there was a significant drop in the value of housing over the past few years. Though there have been some recent upticks in the value of property, many lost homes and had difficulty repaying debts as they found that their homes were worth less than what they owed. This led some to a filing of a personal bankruptcy such as a Chapter 7.
Until the economic recession hit in recent years, many people in California found it easy to obtain credit and financing. Then, as the economy faltered, banks and mortgage holders tightened rules relating to how much credit they were will in got offer. This action may have been in part an effort to forestall default by borrowers. However, it was to little, too late for some, and those people sought the protections offered by a personal bankruptcy.