In California, people are familiar with the fact that there was a significant drop in the value of housing over the past few years. Though there have been some recent upticks in the value of property, many lost homes and had difficulty repaying debts as they found that their homes were worth less than what they owed. This led some to a filing of a personal bankruptcy such as a Chapter 7.
In some cases of those who not only owned homes but also worked as builders, the real estate crisis was particularly stressful. This was because they often fond that they were unable to sell homes that they had constructed during better times. This may have been what happened to one man who recently sought the protections of a Chapter 7 bankruptcy in California for both himself and his company.
The man, who lives and works in the San Luis Obispo area is said to have developed 29 homes before the real estate crisis. Some of these homes were built using loans from various creditors. Those creditors are likely included in the total of $1.1 million that the business owes, as reported in the bankruptcy. In addition, the personal case lists creditors such as a homeowners association and banks.
The Chapter 7 bankruptcy cases that the man filed could have many benefits for him. These include the discharge of debts that have previously made it difficult for the man and his business to make ends meet. In fact, many find that they are able to restart their economic lives as the bankruptcy process finalizes, making the process a worth while choice for many in California.
Source: SanLuisObispo.com, Grover Beach home builder files for Chapter 7 bankruptcy, Julia Hickey, Aug. 28, 2013