A bank illegally organized by Joseph Smith and other LDS leaders in 1836, The Kirtland Safety Society, failed in November 1837, loosing
“a hornet's nest. Creditors swarmed in upon Joseph armed with threats and warrants. He was terribly in debt...the local non-Mormon creditors whom he could not repay brought a series of suits against the prophet...
“Thirteen suits were brought against him between June 1837 and April 1839, to collect sums totaling nearly $25,000. The damages asked amounted to almost $35,000. He was arrested seven times in four months...only six [suits] were settled out of court -- about $12,000…”(No Man Knows My History, 199-201)
Many in the Church grew disillusioned with Smith’s leadership.