Two brothers from another state who had a judgment against them made a financial decision recently. They decided to file for personal bankruptcy when they learned that the city that held the judgment was seeking to enforce it by selling the home of one of the men. The filing is an action that can help slow this process and is common for people in similar situations in California.
According to a report about the personal bankruptcy filing, the brothers filed suit against their home city in 2002. The lawsuit involved a nightclub owned by the brothers. The suit was unsuccessful, and as could occur here in California, the court held the brothers responsible for the costs associated with defending the suit, which were incurred by the town that they sued.
The personal bankruptcy that was filed was a Chapter 13. Under this type of action, the foreclosure would forestall, giving the homeowner time to renegotiate terms with their lender or those that they owe. In addition, the bankruptcy will involve a repayment plan that, once complete, results in near total repayment of debts to creditors.
Choosing to file a personal bankruptcy is rarely the first choice of people in our state. However, once the decision is made, many find that there are benefits to taking this step. Such benefits include the slowing or ending of a foreclosure, ending of collection efforts by creditors and the opportunity to modify, in some cases, terms of secured debts such as mortgages. Each of these can help a positive result occur when the process ends.
Source: kansascity.com, High Point councilman files for bankruptcy, No author, Dec. 17, 2013