In California, when people find that they are unable to repay the debts that they owe, many turn to the filing of a personal bankruptcy. Such personal bankruptcy filings often end in a relatively quick time frame and result in the discharge of debts. However, this has not been the case in one recent matter that may be of interest to our readers.
In that personal bankruptcy case, a man and his wife filed a petition to the court asserting that they owed some $767 million to various creditors. As a part of the assets that the couple claimed they owned were cash stored in a safe and a club membership in a mountain state famed for skiing. Some of that property later became the center of a dispute when the couple divorced during the bankruptcy process.
In fact, the ex-wife of the man asked the court to pay her $15 million. However, the court disagreed that she was owed the money and settled the claim for $100,000 and other considerations. These included the ability to keep some of the proceeds of the sale of the club membership and the cash stored in the safe.
The personal bankruptcy case is unusual in many aspects, though filing for a bankruptcy in California requires the same disclosures as occurred here. In fact, when people choose to make a bankruptcy petition, it is necessary that they disclose all of their income and assets. If they do not, they may find, as happened here, that there are penalties that can be assessed to the individual who filed the petition.
Source: TwinCities.com, Denny Hecker's former wife settles with bankruptcy trustee, MaryJo Webster, Oct. 17, 2013