Many California basketball fans are familiar with the name Christian Laettner. Now 47 years old, Laettner is a former basketball star who played for Duke. He recently made headlines as he tried to fight an involuntary bankruptcy case. He was successful in that endeavor when he recently settled on a repayment plan that may keep him out of personal bankruptcy.
When many people in California think about bankruptcy, they likely do so in a negative light. Some feel that the only reason to file for Chapter 7 bankruptcy is due to a lack of financial discipline. Others assume that bankruptcy represents some type of failure. Some even believe that bankruptcy is nothing more than an effort to shirk one's financial obligations. In reality, however, many highly successful people turn to personal bankruptcy to resolve complex financial matters.
When many in California think about bankruptcy, they envision a scenario in which working-class people become overwhelmed by financial pressure. While this is one set of circumstances that commonly leads to personal bankruptcy, it is not the only path to financial turmoil. In many cases, individuals have achieved high levels of success in their career field, only to find that they have little to show for it at the end of the day. Professional athletes are a prime example, and efforts are now being taken to educate them on better money management practices.
Emerging from a successful personal bankruptcy process provides a deep sense of relief to many California consumers. The time that follows is a period during which it is important to make well-informed financial decisions. Debt reorganization can provide consumers with the ability to regain control over their finances, but without the proper precautions it is possible to sink back into unmanageable debt.
Many California residents are aware that there are certain exemptions that can be made during a personal bankruptcy case. That means that certain types of assets will not be included in the bankruptcy process, allowing individuals the right to make use of those assets as they see fit. Certain types of retirement savings are among the assets eligible for bankruptcy exemption. In one recent case, a bankruptcy court in California considered which types of retirement savings can be exempted from a Chapter 7 bankruptcy.