Political candidate files for Chapter 7 bankruptcy

Political candidate files for Chapter 7 bankruptcy

It's not uncommon for people in Maricopa to experience financial issues and to be struggling with debt. One solution frequently used to get a handle on debt problems is Chapter 7 bankruptcy. Many may see filing for Chapter 7 bankruptcy as something they would never consider or believe is a tactic some use to shirk their responsibilities. In reality, it is a tool that many have utilized to get a fresh financial start.

A candidate for local political office with debts approaching $400,000 took the step of filing for Chapter 7 bankruptcy. A prior business partner claims to be owed the largest amount at slightly over $200,000. The business partner had used his home as collateral to secure a loan to join with the prospective politician to purchase a business. The partner took control of the company with 51 percent vs. 49 percent owned by the politician. The loan was supposed to be repaid within three years, but wasn't. In addition, the politician owes more than $190,000 to over 30 creditors. The business partner had filed a lawsuit to recoup his money, but the decision to file for Chapter 7 bankruptcy puts a stay on that filing.

Overwhelming debt can happen to anyone and it's not simply a matter of overspending and poor choices. There are times when people lose their jobs, business opportunities don't work out or medical expenses crop up. Any number of occurrences could lead to struggling with debt. Chapter 7 bankruptcy is a tool that is used to wipe out most debts. It can allow a person to keep their home, vehicle, furniture and other possessions. There are income requirements and other factors taken into account when filing for Chapter 7, but it is a legitimate way to get back on better financial footing.

In this case, the politician ran into financial problems with a business partner and money owed to creditors. Even with the amount of money he owes and the legal issues he's facing, Chapter 7 bankruptcy is a viable alternative. Those with similar issues may wish to contact an attorney to discuss the details of Chapter 7 bankruptcy.

Source: MassLive.com, "Peter Punderson, East Longmeadow selectman's candidate, faces lawsuit, flies for bankruptcy," Elizabeth Roman, Mar. 20, 2014

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