California Bankruptcy Lawyer Blog

If you live in San Jose and have ever taken a ride in an elevator, shopped at a department store, or possibly been placed on hold, you no doubt have had the dubious honor of being privy to the sounds of background music programming. Now, what San Jose residents may not know is that some entity programs those stellar music selections. Enter Muzak Holdings.

Approximately one year ago Muzak Holdings filed for Chapter 11 protection in Delaware. Today, Muzak Holdings has emerged from Chapter 11 reorganization with a significantly improved balance sheet, reducing its outstanding debt by more than half and realigning its organizational structure to improve its client’s experience.

In a statement to the associated press Muzak’s, CEO Stephen Villa, noted that “As we move into the future, our strengthened capital structure provides us with the renewed ability to invest in new talent and technology that will allow us to provide new offerings and further enhance the first class products and services that our clients have come to expect from Muzak.”

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A drop in the number of million-dollar plus homes sold in California has marked its fourth consecutive year (2009) on the downslide. Hillsborough ranked the highest with the most expensive home selling at $8 mil, with Menlo Park a close second. To follow were Cupertino, Los Altos and Saratoga, while Palo Alto, Fremont and Los Gatos were the next grouping on the list with Los Gatos’ top seller peaking at $4.25 million. California communities where almost all sales of homes were in the million-dollar category were Portola Valley and Atherton in San Mateo County, Newport Beach in Orange County, Ross in Marin County and Rancho Santa Fe in San Diego County.

MDA DataQuick, a real estate service out of San Diego recently reported that 18,621 California homes sold for a million dollars or more last year, down 23.8 percent from 24,436 in 2008. In 2007 the total was 42,506, in 2006 it was 50,010 and in 2005 it peaked at 54,773. Last year was the lowest sales count since 2002, when 15,703 were sold.

1,457 newly built homes accounted for 2009's $1 million-plus sales, down 50.3 percent from 2,933 for 2008. There were 1,542 condo sales in the million-dollar category, down 34.7 percent from 2,362 the year before. Condos sold at the million-or-more level were in San Diego, Los Angeles and San Francisco.

While these statistics are mildly interesting, most consumers in the greater Bay Area do not fall in the category of the million dollar listing. If you are facing foreclosure, need assistance with asset management or protection or are considering filing bankruptcy, a Bay Area Bankruptcy Attorney may be in order. No matter what monetary bracket you fall into, consumers in debt are rampant in our current economic crisis, as commercial filings skyrocket, the dow dips, retail businesses file left and right, loans get modified and unemployment continues to plummet. However, the upside to those in financially dire straits are the bankruptcy options available to you, including the Fresh Start of a Chapter 7 bankruptcy.

Aid for money markets, bond dealers and foreign central banks was cut off this week as the Federal Reserve shuts down emergency liquidity programs put in place to stave off the credit crisis resulting from the 2007 US mortgage collapse. According to data released this week by the Federal Reserve, a $2.25 trillion balance sheet contrasts sharply compared to $924.2 billion noted for September 2008, approximately 5 days prior to the bankruptcy filling of Lehman Brothers Holdings Inc.

New Federal Reserve Chairman, Ben S. Bernanke (sworn into his second term just yesterday), made the move to shut down the programs as a first step focused on avoiding a depression, and bringing down the unemployment rate, currently at a 26-year high. To do this, Bernanke’s plan promise is to keep the benchmark interest rate low for a longer period of time as the financial crisis fades. Others disagree, stating that “normal isn’t zero,” as the overnight loans interest rate among banks has been near zero since December 2008.

Don Galante, Senior V.P. at MF Global Ltd. Was quoted by Bloomberg as stating, “It’s a sign telling you we’re beyond the financial crisis. But that’s not the problem today. The problem today is the broader economy.”

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

The Wall Street Journal reports a major dip to below 1000 for the Dow Jones Industrial Average before rising ever so slightly above that 1000-marker, where it settled. The culprit? Why, the global economy, of course. The Dow’s 268.7 point fall is the worst since April of 2009 in addition to a marked 3-month low for 2010. Meanwhile, Treasury prices rose, as did the dollar, and investors ran for cover. The bleak unemployment picture also plays a major roll. This is no surprise to Bay Area consumers and especially Northern California consumers in debt as we all balance our budgets, clamor to the internet to check our credit scores and consider filing bankruptcy as a viable avenue to resolve mounting debt through bankruptcy options and hopefully get that Fresh Start everyone has been hearing about.

If you are a San Jose consumer in debt facing similar dips and lows, you may need the advice of a qualified bankruptcy attorney. The economy being what it is and mounting debt against a rising dollar may prompt Bay Area debtors to re-evaluate their finances and seriously consider bankruptcy options.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

BlueHippo Funding LLC which markets computers to consumers with low credit scores, filed for Chapter 11 federal bankruptcy protection. The firm was driven to file for bankruptcy protection when its bank accounts were frozen due to contempt charges filed by the Federal Trade Commission. The FTC has accused BlueHippo of violating a settlement agreement filed in April of 2008. Pursuant to that agreement, BlueHippo was barred from collecting payments from its customers without delivering the product the consumer expected to receive.

BlueHippo has had more than 4,200 complaints filed against it for allegedly failing to provide the goods promised. BlueHippo paid a $3.5 million fine to the FTC as a part of its settlement agreement. BlueHippo claims the FTC’s current action is based on false statements and that it has not been inappropriately using customer funds, but merely paying creditors to remain in business. Under Chapter 11 bankruptcy protection, BlueHippo can petition the Court to use cash collateral to keep its doors open and pay its creditors. BlueHippo will be best served by quickly proposing a restructuring plan to the court to end its stay in bankruptcy as quickly as possible.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

While lenders will generally look at both spouses credit reports prior to making significant loans, there is no such thing as a “combined credit score.” For example, if a woman with an 800 FICO score marries a man with a 600 credit score, the day after their wedding, there is no merging of credit scores that would result in each of them having a 700 FIC score. Each spouse has his/her own credit score based upon their credit history prior to marriage and post-nuptial activity. This is true whether you live in a community or non-community property state. For purposes of a credit report, your credit score will only be impacted by your spouse’s credit issues if you are both listed on the debt and neither of you are making timely payments.

In a divorce proceeding in a community property state you may be liable for your spouses debts incurred during marriage, but this same rule does not apply in bankruptcy. A debt solely held by one spouse can be discharged in bankruptcy and the creditor will not be able to pursue the non-filing spouse. Practically speaking, spouses should assist each other with debts whenever possible to keep both of their credit scores in good standing, which will aid in making large purchases such as cars and homes in the future.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Reader’s Digest loyalists in San Jose may be interested to know that according to the associated press, the company has hit a snag in their Chapter 11 bankruptcy. Apparently, regulators in the U.K. will not approve Reader’s Digest’s plan to settle pension costs there. The company had reached a deal to retire a $180 million obligation of a British subsidiary in exchange for a $17.6 million cash payment and giving up a one-third stake in the business.

Originally the company anticipated emerging from Chapter 11 by the end of January, with its lenders taking ownership. Still, a judge in the U.S. Bankruptcy Court for the Southern District of New York has already approved the company's Chapter 11 plan, which cuts its debt load to $555 million from $2.2 billion.

Despite the setback Reader’s Digest still anticipates emerging from bankruptcy within the next few weeks.


If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose residents and debtors alike will soon have intimate insider details surrounding the financial crisis of 2008 and its effect on former treasury secretary Henry Paulson. The former Treasury Secretary’s new book (On the Brink) will be released Monday but the associated press purchased an early release copy.

Associated Press writer Stevenson Jacobs, notes that in Paulson’s new book, a “jolt of fear” gripped Paulson as the enormity of the financial crisis threatened to plunge the U.S. economy into financial abyss. Jacobs quickly notes, however, that no new revelations are revealed in Paulson’s book. Instead the book offers an intimate perspective on one man trying to prevent financial catastrophe.

For example, in one passage Paulson describes one phone to his wife where he expressed fear when people were coming to him for answers he simply didn’t have. In another passage Paulson describes how exhaustion and fear finally revealed themselves in public. After an emergency meeting with congressional leaders on Capitol Hill to discuss the massive taxpayer rescue of insurer AIG Paulson began feeling nauseous and had to crouch behind a pillar. Paulson notes how thankful he felt that journalists did not witness the incident.

Paulson also details a meeting between CEOs of the nation's largest and most powerful banks, including JPMorgan and Goldman Sachs, in a desperate bid to save Lehman Brothers. Unfortunately, a deal never happened. Three days later Lehman Brother’s filed the biggest bankruptcy in U.S. History.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Commercial bankruptcies have nearly doubled over the past year. California continues to be the most severely impacted by the financial crisis. Among the 15 areas across the United States with the highest bankruptcy filings, eight of them are in California. Sacramento metropolitan areas, San Bernardino and Los Angeles lead the nation in small-business bankruptcy filings. These areas are closely followed by San Diego-Carlsbad, Oakland, and San Jose for having the most bankruptcy filings.

California is hoping to rally back from the economic downturn during 2010, but given the most recent statistics, it appears that things may get worse before they get better. The bankruptcy code is available to help debtors through the financial crisis and provide a Fresh Start.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

There is a cultural stigma associated with bankruptcy that consumers who file for Bankruptcy protection are shopaholics who are just trying to take advantage of the system. For the average filer, this stereotype could not be further from the truth. Currently, the typical bankruptcy debtor is well educated and work in a cross section of all occupations. Their bankruptcy is often driven by a recent divorce, medial injury or illness, or unexpected job loss. The whole purpose of the bankruptcy laws is to give consumers who have experienced these types of unexpected financial crisis a fresh start. There is no reason for qualified debtors to shy away from maximizing their entitlement to start over again and rebuild their credit and lives.

Bankruptcy filings have dramatically increased in San Jose over the past year. Statistics show that women filing for bankruptcy has increased almost 800%. It is believed that changing societal norms such as the increase in single-parent households, higher divorce rates, rising medical costs and lack of medical insurance, are contributing to the increase in bankruptcy filings as a whole.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Due to the less than stellar holiday shopping season, there is a general expectation that an increased number of commercial retailers are contemplating filing for Chapter 11 bankruptcy protection. Given the rising unemployment levels, underwater mortgages and low consumer confidence this view is supported by bankruptcy attorneys and economists alike. Retailers are struggling with making payments to landlords and suppliers, who are also likely having financial difficulties under the current economic climate. Retail sales are expected to be down 12 percent to 15 percent compared to 2008. This dramatic decrease comes after sales dropped approximately 8 percent in 2008, resulting in a nearly 20 percent drop in the past 2 years.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

This week's Bankruptcy bill designed to adjust to rise in complexity of bankruptcy cases.

Bankruptcy Law360 reported this week that the U.S. House of Representatives is reviewing a bill for the addition of 25 permanent bankruptcy judges to the bankruptcy bench. A rapid rise in the complexity of bankruptcy cases in the bankruptcy courts is sited to be the primary reason. Representative Steve Cohen, a Democrat from Tennessee, presented the bill on Tuesday of this week proposing 13 new bankruptcy court judges, and the transition of 22 temporary bankruptcy court judges into permanent roles. The authorization of two temporary judges’ extension to 5 years would be also be part of this legislative move.

Although a harsh reality, the drastic rise in bankruptcies should come as no surprise to California consumers in debt, as all walks of life are feeling the effects of the recession and many wish to rebuild their credit and move on to a Fresh Start. Unemployment being at an all time high, fear of foreclosures and mounting debt is causing many to evaluate their finances and bankruptcy options, hence the rise in Bay Area bankruptcy filings in San Jose, San Francisco and the surrounding areas.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.