Even with the recession in the rearview mirror, personal and financial hardships are not uncommon among people in California. This may be demonstrated well by the recent personal bankruptcy filing by Hector Holguin, an entrepreneur who was otherwise seen as successful. Unfortunately, his path to debt relief appears to be a bumpy ride.
It may not be common knowledge that those owed debts can object to or challenge a bankruptcy filing. Holguin's bankruptcy filing is currently stalled over a challenge by another businessman, who is seeking repayment on a 2-year-old loan. He claims that Holguin owes him $177,000, although a court order that was issued months before the bankruptcy filing ordered him to pay $190,000 to account for additional costs.
Part of his objection to Holguin's bankruptcy reorganization includes the allegation that his stock share in Secure Origins -- his decade-old company -- was not accurately valued. Holguin claims that he stepped away from Secure Origins years ago, and that the only income he currently receives comes from benefits that he and his wife get from Social Security. His home was also included as an asset in his bankruptcy filing.
While personal bankruptcy is an innately personal decision with which many people in California grapple, for many, the potential outcome is highly beneficial. When there is an objection or challenge to the filing, it is up to the court to determine what the most up-to-date and accurate information is. Although some creditors may attempt to challenge a debtor's filing, a solid legal foundation can prove to be beneficial for those who simply need debt relief.
Source: elpasotimes.com, "El Paso high-tech guru's bankruptcy filing draws businessman's protest", Vic Kolenc, Dec. 26, 2014
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