Why filing for bankruptcy in FL is so important to one man

Legal troubles can quickly result in financial difficulties, as individuals are often forced to commit a great deal of their financial resources to defending themselves in court over an extended period of time. It’s for that reason that the opportunity to file for Chapter 13 or Chapter 7 bankruptcy in the state of Florida is taken so seriously by some of those confronted with the prospect of conviction.

Prior to the beginning of his trial over accusations of insider trading, one man understood that Goldman, Sachs, the investment bank would cover his legal expenses as long as he was cleared of all charges. Because the individual was a bank board member, Goldman is obligated to pay for his legal services through the entirety of his case; though, if his appeals bid fails and his conviction stands, the man will be forced to reimburse Goldman for around $50 million in legal fees.

In early 2008, the individual was estimated to be worth in excess of $130 million. Now, however, the loss of income as a result of his legal case along with failed investments has apparently placed the man in serious financial trouble. And since the convicted inside-trader was recently ordered to report to prison to serve out a two-year sentence, he was taking efforts to ensure that Florida is recognized as his legal place of residence. Due to differences in Florida and Connecticut bankruptcy laws, living in Florida protects the entire value of his home in the event that the man files for bankruptcy.

Individuals considering bankruptcy in Florida are advised to consult with an experienced lawyer so that they can explore their legal rights and options. Florida bankruptcy guidelines differ from those in other states and can offer unique opportunities to filers in some instances.

Source: New York Times, “Former Goldman Director Gupta’s Last Days of Freedom,” Anita Raghavan, June 13, 2014