In California, there are many people who have suffered financial difficulty over the past few years. Among them are small business owners who found that it was difficult to make both their business and personal finances work. This was the case for one man who recently filed for a personal Chapter 13 bankruptcy in his home state.
The man chose a Chapter 13 bankruptcy in part because, with that type of case, he would be able to not only earn an income but also keep much of the property that he owned at the time of the filing. This is also the case for people in similar situations here in California. In fact, many find that they are able to retain ownership of homes, cars and other items even as the process concludes.
In a Chapter 13 bankruptcy case, the person filing is required to disclose their income, assets and debts. In this case, the man asserted to the court that he had between $500,000 and $1 million in assets. However, he also stated that he owed some 50-99 creditors an amount equal to the value of his assets. This fact likely led to the bankruptcy filing.
During the Chapter 13 bankruptcy process a person is ordered to make payments to the court. This plan often lasts for a period of three to five years and, when concluded, leaves many creditors having been totally repaid. The good news for those who seek this type of bankruptcy is that some lenders look more favorably on it, making obtaining new credit easier. This can help both those who are business owners as well as people who would like to buy homes or vehicles in the future.
Source: Sun Journal, Oxford Aviation president files for personal bankruptcy, Peter L. Mcguire, Nov. 13, 2013