For those facing an unmanageable amount of debt, life can be very stressful. While many people view it as an extreme option, bankruptcy may be the best way to get their lives and finances back on track. One New Jersey politician made the decision to file for bankruptcy when she lost her home to foreclosure and found herself buried under seemingly insurmountable debt.
It was recently brought to light that the Democratic candidate for the Ocean County freeholder position filed for bankruptcy in 2002. The year before, the woman and her husband reportedly lost their home to foreclosure after 23 years of living in it. According to the IRS, she also owed over $200,000 in back taxes. By 2002 she had built up substantial debt dating back a quarter of a century. She reportedly had just $20 in her checking account and had acquired over $660,000 in liabilities when she decided to file for bankruptcy.
In December 2003, all debt collections against her ceased, and the New Jersey court system discharged her bankruptcy case.
As this case shows, anyone, including politicians, can find themselves in an overwhelming amount of debt. Filing for Chapter 7 bankruptcy can be a viable solution to clear mounting debts by liquidating assets. Filing for Chapter 13 bankruptcy allows an individual to retain the majority of their assets after working out a reasonable repayment plan. Either option could help stabilize personal finances, and an experienced bankruptcy attorney may be able help those facing financial difficulty better understand their options.
Source: Mycentraljersey.com, “Ocean freeholder candidate Michele Rosen battled IRS debt,” Erik Larsen, 1 June 2011