In California, as elsewhere across the nation, owners of many businesses found that they had financial difficulty during the recent recession. Many of these people faced foreclosure and personal bankruptcy filings as the downturn continued. This is what may have happened to one former company owner from another state.
The man filed a personal bankruptcy in 2012. This was at the same time as his company was taken into a business bankruptcy. The two acted as parallel matters, with many of the same creditors being listed on the filings. This is common for this type of bankruptcy in California as well.
The total of the debts that were owed by the man and his company were reported as being somewhere between $100 and $500 million. To satisfy some of that amount, the Trustee held a sale of the property of the man. Some of the items that were sold included land that was in a popular hunting site, a motorcycle and a Hummer SUV. The recent sales brought in approximately $890,000. This money will be applied to the debts that must be repaid.
The decision to file for a personal bankruptcy can come for many reasons for people in California. Many in our state, like the man in this recent case, take such an action as a result of the financial difficulties of a business. When that happens, a bankruptcy can be a good choice because it can offer protections from creditors and their collection efforts. In addition, an individual can find that they are able to restart businesses when the process ends, free from the debts that held them down in the past.
Source: SJR.com, THR founder's land brings $850,000 at bankruptcy sale, Tim Landis, Nov.5, 2013