The term "overextended" is becoming increasingly common in the United States, as people in California and many other states are finding it more and more difficult to make ends meet. Recently a well-known land developer from up in Washington filed for Chapter 11 bankruptcy because, despite his many successes, he simply couldn't bridge the financial gap between income and debt.
The developer, known for creating Bellis Fair Mall in Blaine, Washington, is now facing an $11 million lawsuit from Polygon Financial 05 LLC. Polygon foreclosed on one of the developer's properties when he defaulted on a $16 million loan. Filing for Chapter 11 reorganization puts a stop on all legal maneuvers taking place against the developer, and will allow him some breathing room to restructure and reorganize his current debt.
As with the case of this Washington man, many Californians who are faced with overwhelming debt have found that filing for bankruptcy (Chapter 11, in particular) is the best decision they can possibly make for maintaining financial control. Filing for Chapter 11 reorganization allows debtors an opportunity to restructure their current financial situation in an effort to pay down debt in a manner agreeable to all creditors. Sometimes, fluctuations in economic prowess can create strain when it comes to paying debts on time. This is true for residents all over the United States -- from successful developers in Washington to average residents in California. And while economic hardship does not discriminate, Chapter 11 reorganization can offer struggling debtors from all walks of life a chance for a financial re-start.
Source: bellinghamherald.com, "Bellingham developer David Syre files for bankruptcy," John Stark, Dec. 9, 2011