The financial crisis was tough on people from all walks of life. This was certainly the case for many of us in California who found that homes and jobs were lost. These losses led some to seek the protections of a personal bankruptcy. Such a filing could help to stop foreclosure actions and limit attempts of creditors to collect debts.
In one recent case that may be of interest to readers in California, a man who was once one of the most famous Wall Street executives filed for a personal bankruptcy. The man was the head of financial funds that bought distressed businesses over the past few decades. Now, he hopes to regain that business fame after his bankruptcy is final.
At the time of his personal bankruptcy, the Wall Street executive told the court that he had been ousted from his position at the head of his investment firm. In fact, he reported that he went from making an income that allowed he and his wife to spend some $10.8 million a year on vacations, homes and luxuries, to earning just over $1 million per year. This income did not allow him to repay his estimated $25 million in debts.
Filing a personal bankruptcy can come when a person finds that they are unable to repay their debts. For many, this occurred when the financial crisis took away the security of long time jobs and home values. For the man in this case, as those of us in California, a personal bankruptcy allows for the chance to restart a financial life.
Source: cnbc.com, "Investor Aiming for the Top, Again," Randall Smith, May 15, 2013