Previous posts have mentioned how Chapter 7 bankruptcy is a tool for the consumer; a way for individuals in California to liquidate their assets and pay off their creditors, all while marching toward a fresh financial start.
All types of people find themselves in position to file for Chapter 7, from celebrities to regular middle-class citizens. A recent story about a federal judge in California should demonstrate to Escondido-area readers that sometimes it doesn't matter who you are or what you do for a living, Chapter 7 can be the best option in a bad situation.
A judge with the California Central District Court recently filed for Chapter 7 bankruptcy. He has been a federal district court judge since 2007 and if he's like most of his colleagues, he earns $174,000 per year.
A judge filing for bankruptcy is notable due to its rarity, but as mentioned above, financial hardships can happen to anyone. In the Chapter 7 filing, the judge and his wife listed assets of $833,426 and liabilities of $895,292. Among the liabilities is approximately $70,000 in credit card debt.
The bankruptcy trustee handling the case has indicated that the plan is to put the couple's Los Angeles area home on the market for an asking price of $1.2 million.
Taking the step to file for Chapter 7 bankruptcy was probably a very heartbreaking experience for this federal judge. His attorney indicated that the judge did everything he could to pay his debts before filing, including withdrawing his retirement funds.
Filing for Chapter 7 bankruptcy may be nerve-racking, but an experienced bankruptcy attorney can make the process less complicated. Anyone worried about any kind of associated embarrassment or shame should know that certain steps can be taken to make sure the Chapter 7 process is as painless as possible
Source: The Wall Street Journal, "Federal Judge, 'Like So Many Others,' Files for Bankruptcy," Joe Palazzolo, April 25, 2012