Local Developer’s 2009 Chapter 11 Bankruptcy Filing
A San Jose bankruptcy attorney discusses the bankruptcy filing of Santa Clara's Fairfield Residential...
As any San Jose bankruptcy attorney can attest, The Bay Area is not immune to the country’s financial crisis, including the collapse of the real estate market. On December 13, 2009, Fairfield Residential, the developer of the Gallery on Central Park project at 900 Kiely in Santa Clara, filed for Chapter 11 bankruptcy protection. Fairfield Residential is a privately held company that was forced to seek bankruptcy protection when it was unable to refinance its existing debt or sell properties to recover investments as many properties owned were heavily under water. Some estimates show that Fairfield’s liabilities could total $1.5 billion or more. Pursuant to the company’s website, Fairfield filed for Chapter 11 bankruptcy protection with a pre-negotiated agreement which would allow it to exit the bankruptcy process once the restructuring is complete and in an effort to avoid closing or liquidating the business altogether.
By filing for Chapter 11 bankruptcy, Fairfield can continue to operate its business while negotiating a plan with creditors to restructure the business or reduce debt. During this time, creditors would be unable to collect payments or debts incurred prior to the bankruptcy filing. While this allows the company to stay in business, the effects of Fairfield’s current financial crisis will undoubtedly be far reaching and take a big toll on California’s already flailing economy. Fairfield has interests in roughly 200 multifamily projects as well as investments in metropolitan areas across the United States.
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.
