Many people associate bankruptcy with an end, not a beginning. Indeed, filing bankruptcy can be a very traumatic experience that many relate to a divorce or even a death. But in states like Florida, where bankruptcy laws tend to favor the filer, filing for bankruptcy can often be far from starting over. Instead, bankruptcy can be a way to end the battle against overwhelming personal and business debt. But seeking proper legal advice is often the only way to come out of bankruptcy with a fighting chance.

One couple in Florida has experienced firsthand how filing bankruptcy is not always the end to prosperity. The couple, which moved to the United States from Venezuela, is facing debt of about $50 million. But in exchange for auctioning their Star Island home in Florida, among other homes the couple owns, debtors are prepared to make a deal that would leave them with at least $500,000 in assets. Also, the husband would be allowed to reassume the presidency of his former company.

The couple took advantage of a bankruptcy reorganization plan that will eventually clear them of their debts when they emerge from court. And although the couple has already begun living a more frugal lifestyle since filing bankruptcy, like shopping at local merchandise chains like Target, they will be able to live a normal life following the bankruptcy. Some investors are optimistic about the reorganization plan proposed by the couple's lawyer and regard it as a much better solution to the debt than liquidation.

Source: Miami Herald, "Star Island couple to lose multi-million dollar estate in bankruptcy auction," Jay Weaver, Oct. 25, 2011