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.
Following the failed settlement, the bank holding the note on the Doubletree Lake Estates and Doubletree Golf filed a foreclosure action against the business. The bank is seeking over $13 million in damages for the partnership's failure to pay amounts due on the Doubletree properties. This led one of the owners of the foreclosed business to file a separate proceeding for personal bankruptcy on the Friday before Christmas.
The man filed for Chapter 7 bankruptcy as a means of eliminating all of his debts and beginning with a fresh start in the financial arena. His filing bankruptcy effectively bars certain collection actions against him and his property for the time being.
Such barring of action means that creditors will not be able to collect against him or his assets during the stay period. In certain instances, a stay period can be limited to 30 days, and in some cases the debtor may be able to request an extension on that timeframe. While bankruptcy is never an easy choice, for many people it does provide the relief needed to get out from under an insurmountable debt. When finances become overwhelming in this troubled economy, it is important to remember that there are always several personal options available when it comes to debt relief.
Source: nwi.com, "Doubletree Lake Estates owner files bankruptcy," Susan Brown, Dec. 23, 2011