California Bankruptcy Lawyer Blog

San Jose Bankruptcy Attorney discusses another Chapter 11 Bankruptcy Success Story

Delphi Corporation, once the world’s largest auto parts manufacturer, is likely to emerge from Bankruptcy within the next few weeks. Delphi has refocused its product line to supplying powertrain components, connectors and wiring harnesses, and teamed other products and divisions.

With a large contribution from General Motors (GM) comprised of approximately $2 billion in cash and a $500 million loan, Delphi projects to be profitable within 12-18 months of emergency from Chapter 11 bankruptcy.

Utilizing the protections provided during the pendency of its bankruptcy, Delphi has been able to cut restructure its debt, dispose of underproducing plants and restructure its facilities. Delphi is expected to exit its CH 11 bankruptcy small but with a more global presence.

Delphi is another example of the benefits of restructuring through a Chapter 11 bankruptcy proceeding. Once a cash starved company teetering on the brink of collapse, Delphi now has the potential to emerge leaner and more profitable than ever before.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are 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 needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Sacramento Bankruptcy Attorney discusses the Pitfalls of Pursuing Voluntary Loan Modifications

It has been predicted that there will be over 8 million foreclosures in the United States over the next four years. Thousands of people are trying to negotiate voluntary loan modifications with their lenders to prevent themselves from becoming a statistic. Unfortunately, the most recent data shows that less than 10% of the consumers who participate in voluntary loan modification programs actually receive a modified loan that results in a reduced principal loan balance. Current data also reflects that approximately 45% of strapped consumers who participate in voluntary modifications actually end up with higher monthly payments as a result of the modification. Consumers who modify their loans may also end up capitalizing their unpaid interest and fees, which get placed on the back end of the loans, and ultimately increases the consumer’s overall debt.

Even with all of the programs to incentivize lenders to make meaningful loan modifications to struggling consumers, the execution of these programs is falling short. Consumers are often given the “run around” or told to get further behind on their payments in order to receive assistance. Asking well intentioned consumers to intentionally fall behind on their payments or further damage their credit just to be given the time of day is patently unfair. Furthermore, many consumers voluntarily attempt to modify their loans for months before they are finally told that relief will not be granted. A serious restructuring of the voluntary loan modification process needs to take place in order to adequately protect consumers and provide much needed relief.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are 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 needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney Speaks About GM Bankruptcy

Just a few months ago, Chrysler filed for Chapter 11 Bankruptcy. On Monday, June 1, 2009, General Motors (GM) followed suit. From a historical perspective, GM has been a carmaker for about 100 years and was the largest carmaker for 77 years (until last year) The stark picture today has GM with $172.8 billion in debt with only $82.3 billion in assets. The US government has already “loaned” GM about $50 billion dollars which will be mostly converted into equity into the new company that GM will become.

Under the US Bankruptcy protection, GM plans to do many of the initiatives that were always recommended but impossible due to contracts, laws, and shear audacity of the plans because the other options (if the actions were not taken) would be to liquidate the entire company. Some of the actions to be taken within the next 60-90 will be the sale of unprofitable divisions like Saturn and Hummer. One of GM’s idle plants will be retooled to make smaller and more fuel efficient cars to meet the surge in demand for a greener lifestyle. Other countries are moving forward to aid GM’s foreign divisions like Saab and Opel. These actions normally would have rocked the company headlines and, if the stock reacted negatively, could have lead to proxy fights or corporative executive terminations that may have killed the initiative.

It is unclear how the new GM will do but Bankruptcy gives GM the chance to find out. While not every business needs to be as drastic as GM, even small business owners may discover that Chapter 11 Bankruptcy can provide them with the breathing space to implement the deepest most necessary changes to make their business profitable.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are 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 needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Mateo Bankruptcy Attorney Talks About Loan Modification Attorneys

Due to the sub-prime mortgage crisis, millions of hard working consumers are facing problems paying their mortgages. With many of the adjustable loans about to “adjust” upwards, their difficulty in paying for mortgages will only get worse. As the fear of missing mortgage payment grows, consumers become desperate in their panic to save their homes. The confusing information coming from the government only adds fuel to the fire as there are daily messages that the government is releasing credit or passing laws that order lenders to work with their customers. From this mass confusion arises a new brand of unsavories preying on the uninformed.

The latest trend of mis-advertising is the “loan modification specialist.” These advertisers promise that lenders can have their loan modified to lower interest rates, place missed payments onto the back end of the loan, or even lower of principle. Although there are legitimate programs out there to help lenders modify their loans, the unscrupulous usually ask the nervous homeowner for money upfront then do little or no work on the case. The homeowner usually falls further behind because their precious mortgage money was paid to the specialist only to find out a foreclosure was started instead of a loan modification.

Lawyers are not immune to the lure easy money as well. Crafty loan modification scammers have been trying to “partner” with bankruptcy attorneys to get more money. The bankruptcy attorney is asked to put their name on the advertisement or even onto the loan modification service contract. Then the bankruptcy lawyer does no work while leaving it all to the “specialists.” These actions can be extremely unethical because the bankruptcy lawyer is fee sharing with non-attorneys, collecting fees upfront, or allowing the unauthorized practice of law, which are all not allowed. If a consumer hires a bankruptcy lawyer to do a loan modification then the lawyer is expected to make a good faith effort to provide actual legal services. Simply turning over the case to non-lawyers is not enough because the lawyer has no control over the quality of work being provided.

Therefore, any consumer considering hiring an attorney to do loan modifications should inquire who is actually doing the work. The consumer should also assume that any money they put forward will never be recovered. At the very least, consider consulting with a bankruptcy attorney to understand those options before paying somebody $3,000.00 for an unknown loan modification.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are 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 needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney discusses the Importance of Work Life Balance

The Sagaria Law bankruptcy team attended a 2-day conference in Chicago, Illinois this past week. The theme of the conference was “Get a Life.” At first, the title seemed a bit abrasive. As bankrupcty attorneys, we are constantly striving to reach new goals and better serve our bankruptcy clients. We have massive amounts of deadlines and our actions have serious consequences for our clients. Telling us to “Get a Life” seemed a bit unfair.

However, after listening to the speakers over the course of the conference, it became exceedingly obvious that we all, in fact, do need to “Get a Life.” In any profession or career, a balance of work and personal time is critical to continued success. The speakers motivated us to streamline our processes and provided us with added tools to increase customer satisfaction and retention.

At Sagaria Law, we pride ourselves on our commitment to excellence in providing bankruptcy services to consumers, and in every area of our practice. With our new arsenal of strategies and techniques for improved customer service and greater efficiency, all of the bankruptcy attorneys and staff here believe we are on our way to “Getting a Life.”

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are 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 needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Fremont Bankruptcy Attorney discusses GM’s historic Chapter 11 filing

Last week, General Motors (GM), once the United States largest private sector employer, filed for Chapter 11 bankruptcy. The United States government invested $30 billion to support GM through its restructuring process. The Government now owns approximately a 60% stake in the automobile company.

The goal of the Chapter 11 restructuring is to allow GM to cut its under-producing dealerships, unprofitable plants, and other dead weight liabilities. GM intends to emerge from bankruptcy leaner and with only its most profitable brands, dealerships and contracts. GM, with the assistance of the Obama Administration, has been negotiating with the United Auto Workers (UAW) union to decrease its labor costs and the high cost of its current benefits’ plan.

The GM filing comes on the heels of the Chrysler filing in April. The Chapter 11 bankruptcy filings for these two car companies will allow them to emerge stronger and more efficient to help them reclaim market-share. These bankruptcy filings should be viewed as a positive step towards the companies’ future of sustainable growth and profitability.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are 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 needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney Discusses G.M. Bankruptcy

Now that sister company Chrysler has filed for Chapter 11 Bankruptcy, the US is waiting to see what General Motors will do. The question everyone is asking is will GM file for bankruptcy too? GM released their first quarter results which stated that GM lost $5.9 billion (excluding special accounting items) for the first three month period ending in March. GM had a 47 percent drop in revenue compared to the same quarter in 2008. GM built 903,000 fewer cars than it did for the same quarter of last year. This makes GM look less likely that it will survive instead of more viable because it is doing worse now than it did last year. All this is after GM had received almost $15.4 billion in federal loans as government bailout. At this time, GM has about $11.6 billion dollars in cash which should be just enough to keep operating and paying bills. GM spent $10.2 billion dollars of its cash reserves in the quarter which amounts to about $113 million dollars a day.

GM would be expected to file a Chapter 11 Bankruptcy to allow it to continue operating while trying to restructure its debt. GM would have to come up with a payment plan or restructure of debt to its creditors for approval. The Bankruptcy Court is unlikely to require an 100% requirement for the plan. This would create a very ugly battle for GM’s creditors as they would not have to be all treated equally. If enough of the creditors are wooed by a favorable plan, the “holdout” creditors may end up with pennies on the dollar. As a side note, GM bondholders are being offered GM stock in an effort to reduce the its debt load although very few people realistically believe GM will get enough converts to reached a manageable level of debt.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are 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 needs.