Opening a donut shop, an art studio or a clothing store are just a few of the dreams that many people in California have. Many work hard to make these dreams come true, spending large amounts of money and time. For some these efforts pay off with long-term success. Others, however, are not as lucky and they find that they require a personal bankruptcy to help recover from the costs associated with starting a business.
A personal bankruptcy in California can help a person who has opened a business that has not succeeded by offering a discharge of some or all of the unsecured debts taken on by the former owner. Many former business owners find that they have large sums of debt due to the fact that they have taken on personal loans to make the business work. These debts can be forgiven when a bankruptcy is complete in many cases.
The good news for those who are seeking to file a personal bankruptcy is that much, if not all, of their property may be able to be kept during and after the process. Some of what is able to be retained is subject to the chapter of the bankruptcy code used in the personal bankruptcy. However, all personal bankruptcy cases include state mandated exemptions.
Filing for a personal bankruptcy is rarely the first choice for people in California. However, when a person seeks to start a business but find start it cannot be sustained, it may be a good decision. This is because the discharge offered at the end of the process can allow a person from our state to begin a fresh financial start.
Source: The New York Times, "The Painful but Liberating Lessons of a Career Failure," Kai Ryssdal and Megan Larson, March 25, 2013