There are many issues to consider when a person in California decides whether or not to file for bankruptcy. Among these are the bankruptcy exemption rules that allow such an individual to protect many of the assets that they own when they file the case. These exemptions can, in many cases, protect a family home or other property, though each situation may be different.
Filing for a personal bankruptcy is a difficult choice for many in California. However, when a person finds that they have a high amount of debt that they cannot easily repay, they may wish to seek out the help of a personal bankruptcy. This may have been the case in one recent matter of a former mayoral aide of a large American city.
The aide relocated to another state after it was discovered that she lied about an affair with her boss. Once there, she found that her income was reduced from around $100,000 to only $34,000. This reduction may have made it difficult for her to repay the debts that she owed. This may have contributed to why she decided to seek bankruptcy protections. As a part of her decision, she may have considered the bankruptcy exemption rules of her state to help protect her assets.
Like many in our state, what property she could protect using bankruptcy exemption rules may have been important to the former aide. Though it is unclear if she had assets that she wished to keep, in such cases certain exemptions may be allowed under the bankruptcy rules. Because the process can be complicated for many, it may do well for a person in our state considering a bankruptcy to work to understand all applicable rules as they move forward with their case.
Source: freep.com, "Bankruptcy won't excuse Beatty's debt to city of Detroit, prosecutor's office says," Tresa Baldas, Dec. 3, 2012