The bankruptcy filing of a couple from another state may be of interest to our readers in New Jersey. The couple is well known in their community because they are the Principal and CFO of a growing charter school there. The personal bankruptcy came, at least in part, after the pair found that their home had significantly dropped in value during the most recent economic recession.
Like many people in New Jersey, the recession hit the family hard. They owed two mortgages on their home, high credit card bills, tax assessments and car financing obligations. All of these debts became more than they could repay. That is when they turned to the personal bankruptcy process.
The pair filed for a Chapter 13 bankruptcy that requires a repayment plan. The court approved the plan that they proposed make payments to creditors over a period of 5 years. These payments will be made under the supervision of the court and may allow them to keep many of the assets they previously accumulated.
The two have continued to expand the school where they are employed and have also grown their personal careers even as the personal bankruptcy has continued. This is good news for many readers who are concerned as to how such a filing could affect career advancement. It appears that many employers see the filing of a personal bankruptcy as a responsible move that allows a person to make a clean start financially, thus freeing them to focus on their careers and other life obligations without the pressures of overwhelming debt.
Source: TwinCities.com, "Hmong College Prep Academy leaders dogged by personal money woes," Mila Koumpilova and Frederick Melo, April 5, 2013