San Diego Bankruptcy Law Blog

A California real estate developer recently filed for Chapter 7 bankruptcy after defaulting on a sizeable loan. According to court documents, the prominent developer has a lot of assets but also a high level of debt. The court estimated the man's assets at $3.2 million and debts at $136 million. The problems, however, began three years ago with a $17 million loan.

The loan was obtained for a housing project that was never built. After defaulting on the loan, it was purchased, and the new creditor obtained a judgment against the man. The parties appeared to reach a settlement agreement, but then the creditor backed out. As a result, the developer filed for Chapter 7 bankruptcy protection while he attempts a fresh start.

California residents may not be aware that, between 2001 and 2010, average student debt for law students increased 50 percent. That means that most law graduates' earning power is nowhere near enough to pay their student-loan debt in a timely manner. Additionally, bankruptcy filings by college graduates in general rose by 20 percent between 2005 and 2010.

For law school students in California, the debt load is particularly heavy because of a diminishing job market. More and more law graduates are filing for bankruptcy protection while they take other jobs to help chip away at their onerous debt.

After he divorced, the sports agent who inspired Tom Cruise's character in "Jerry Macguire" says he had to live alone for the first time. He would spend whole days drinking, eventually going in and out of rehabilitation centers. Now, after a series of business setbacks over a 10-year period, the former super agent recently filed for Chapter 7 bankruptcy protection.

Leigh Steinberg, 62, was known for securing enormous signing bonuses for his clients, representing many players who later became NFL Hall of Famers. He persuaded players to be role models on and off the field. And it's said that he earned over $100 million in his illustrious career. However, the agent's recent bankruptcy filing discloses assets of $483,500 and debts of over $3.1 million. Sadly, his average monthly income was shown to be only $3.33 more than his average monthly expenses.

California residents are no strangers to the terms foreclosure or troubled economy. Unfortunately, what happens in a bad economy is that bankruptcy and foreclosure often occur simultaneously or one right after the other. California business owners who are seeking a fresh start after some financial difficulty may be interested in the story of a businessman from Indiana who recently sought debt relief by filing for Chapter 7 bankruptcy.

The Doubletree Lake Estates in Indiana recently fell victim to the foreclosure crisis. The Doubletree business included a 60-acre subdivision that was owned in a three-way partnership that went sour. The three partners attempted to reach a settlement agreement that was not successful.