California Bankruptcy Lawyer Blog

What is a Bankruptcy Petition Preparer?

2010-08-26T12:04:50Z

A San Jose bankruptcy attorney describes the

A bankruptcy petition preparer is defined as an individual or company who is not a lawyer nor works for a law firm that will assist your document preparation for your bankruptcy filing.
The generation of bankruptcy forms in the primary duty of the bankruptcy petition preparer. Sounds convenient, right? It certainly can be if you are in the position to spend the money, however there are drawbacks to spending your money with a petition preparer vs. an experienced bankruptcy attorney.

Some of the differences between a bankruptcy petition preparer and a bankruptcy attorney are obvious to some – the bankruptcy petition preparer cannot give you legal advice nor can they serve as your bankruptcy court representative. But take it a step further and you will learn that in addition, the bankruptcy preparer is unable to inform you which type of bankruptcy you should file according to your circumstances or advise you on which debts to list, which debts not to list, which assets to list or not list or what property to exempt – all decisions that must be made during the bankruptcy process.

Therefore it falls upon you to be informed in these areas, a difficult and time consuming tasks which carries great risk in that your bankruptcy may get dismissed for a simple mis-filed item, a missed deadline or misinterpretation of the instructions or bankruptcy law.

In summary, when using a bankruptcy petition preparer, you are the sole person in charge of your bankruptcy case.

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.

What are Bankruptcy Committees?

2010-08-25T14:08:24Z

A San Jose bankruptcy attorney explains what committees are with regard to filing bankruptcy

With regard to filing bankruptcy chapters 7, 9 and 11 in particular, committees are sometimes appointed by the bankruptcy court. An example of a committee appointed in a Chapter 9 bankruptcy and a Chapter 11 bankruptcy is one comprised of stakeholders that hold the seven biggest claims of the type in representation by the committee.

There are also other types of committees within a bankruptcy that are appointed by the bankruptcy court.

As part of their duties, committess interact daily with the debtor, advisors and other key players in the bankruptcy process.

What is a Redemption in Chapter 7 Bankruptcy?

2010-08-24T12:08:31Z

A San Jose bankruptcy attorney talks about the redemption in Chapter 7 bankruptcy...

A redemption as it applies to a Chapter 7 bankruptcy liquidation case, is a tangible piece of personal property belonging to the debtor thats use is intended for personal, family or household purposes. A redemption is encumbered by a lien. To qualify as a redemption, the property, in general terms, much either have been abandoned by the trustee under Bankruptcy Code, Section 554 or it must be exempt under Bankruptcy Code Section 522.

Typically, the full amount of the claim against the property must be fulfilled by the debtor to the lienholder in order for the property to be redeemed by the debtor.

What is the US Bankruptcy Code

2010-08-23T13:08:44Z

A San Jose bankruptcy attorney tells a bit about the Bankruptcy Code

The United States Bankruptcy Code is comprised of laws created to outline descriptions, rules, and guideline pertaining to the various chapters of bankruptcy. The Bankruptcy Code includes Chapter 7 (aka the Fresh Start bankruptcy because of the second chance it offers bankruptcy filers), Chapter 11 (reorganization bankruptcy typically filed by businesses or organizations) and Chapter 13 (reorganization bankruptcy as opposed to liquidation) . The Bankruptcy Code also outlines lesser known bankrutpcies Chapters 9 (the reorganization bankruptcy for municipalities) & 12 (similar to Chapter 13, but only available to family farmers and fishermen).

What is 'the Esate' in Bankruptcy?

2010-08-20T16:08:37Z

A San Jose bankruptcy attorney defines what is meant by The Estate in a bankruptcy filing

The "estate" is created once a debtor commits to the bankruptcy filing and begins the formal process. The estate is comprised of all of the debtor's property interests at the time that the bankruptcy case begins, and may contain certain exemptions and/or exclusions. The estate may also include certian community property interest if the bankruptcy filer is married. The spouse's interest may also be included, even if they themselves are not filing bankruptcy at all.

Property inherited in a 180-day timeframe from the date the bankruptcy commenced may also be included in the bankruptcy esate.

It is important to note here, with regard to federal tax issues, that someone filing a Chapter 7 or a Chapter 11 bankruptcy, the estate becomes a separate, taxable entity. Not so in the case of someone filing a Chapter 12 or a Chapter 13 bankruptcy.

Consumer Debt Consolidation

2010-08-19T13:08:50Z

A San Jose bankruptcy attorney on Consumer Debt Consolidation

Consumer debt consolidation is probably one of the most highly advertised debt relief solutions at the present. However, debt consolidation is not right for most people with credit card and unsecured debt. A consumer debt consolidation company does not have any special power or authority to settle with your creditors than you do. A consumer debt consolidation will often time charge hefty monthly fees for their services. These fees can often be higher than the combined interest that a consumer is reducing by using the consumer debt consolidation company. It is completely legal for a consumer and a creditor to enter negotiations for a structured payment schedule at a fixed interest rate. Often times this can be achieved through one simple phone call to the creditor. The consumer must be careful however to make all timely payments to the creditor because the creditor will likely not work with the consumer post-default.

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.

Where is the Bankruptcy Trustee office?

2010-08-18T13:10:41Z

A San Jose bankruptcy attorney answers: Where is the Bankruptcy Trustee office?

Where is the bankruptcy trustee office?
That depends on both which district you live in and which office you are closer to. In the Northern District of California there are bankruptcy court locations in Santa Rosa, Oakland, San Francisco, San Jose, and Salinas. The bankruptcy trustee offices are also in those locations.

If I live in San Jose but work in San Francisco can I do my bankruptcy in San Francisco?

No. While it might be more convenient to go to San Francisco because of work, you must show up at the location where your residence is. So if you live in San Jose, you will be appearing in San Jose for the meeting of the creditors. If you did live in San Francisco you would appear at the San Francisco location.

Where is the meeting of creditors held?

That also depends on your location. Generally the meetings of creditors are held in the same locations as the bankruptcy court, although not necessarily in the courtroom. For example, in San Francisco the meeting of creditors is held in the same building as the bankruptcy court but not on the same floor whereas in Salinas the meeting of creditors is held in the bankruptcy court on days when the court is not in session.

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.

Business After Chapter 11 Bankruptcy

2010-08-17T13:13:06Z

A San Jose bankruptcy attorney discusses
Business After Chapter 11

Companies choose to file Chapter 11 because its long-term revenues will be higher than the liquidation value of the assets. This way, creditors can get more money back if they allow the debtor business to reorganize and work out a payment plan.

The business becomes a debtor in possession, maintaining control and ownership of their assets and continuing their regular operations. At this point, there is usually no trustee.
A company that declares Chapter 11 must disclose all of its assets and make a list of all the debts that it is seeking protection from. This is the creditors' right to question the debtor, a fundamental part of bankruptcy law. In cases involving millions or billions of dollars, this step alone can be incredibly complex. The creditors also meet with the debtor.
In all Chapter 11 proceedings, a creditors' committee represents the majority of the unsecured creditors, and negotiates the best possible payment options for them. Large-scale cases may have multiple creditors' committees, each representing different groups and factions of the creditors. Stockholders can also form a committee.

At this point, the debtor formulates a plan to reorganize its debts. This plan can be a simple as a payment plan. With larger bankruptcies, companies may take many steps to reorganize their debt. They might offer stock to some creditors. A retail business might have to close stores, lay off employees, or renegotiate union contracts. One of the major provisions of Chapter 11 allows a company to void many of its contracts, including union contracts, contracts with suppliers, and real estate leases.

If a debtor violates the terms of the plan, there are several potential consequences. A trustee may be appointed. If it appears that the company will not be able to operate profitably and follow through with repayment plans, the Chapter 11 will be converted into Chapter 7 and will likely have to liquidate in order to pay off its creditors.

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.

Do I Need Credit Counseling in Bankruptcy?

2010-08-16T13:13:15Z

A San Jose bankruptcy attorney helps answer: Do I Need Credit Counseling?

Q: Do I have a to take a credit counseling course if I file for bankruptcy?

According to the US bankruptcy code, very person who files for bankruptcy is now required to take two credit counseling courses. The first credit counseling course (also known as the pre-petition filing course) must be taken within 180 days of filing your bankruptcy petition. Your credit counseling certificate of completion must be filed with your bankruptcy petition.

You are required to take a second credit counseling course after the petition filing, but before the discharge of your bankruptcy. Similarly, the credit counseling certificate of completion must be filed with the court.

Q: Where do I find these credit counseling courses?
The credit counseling course must be one approved by the US Bankruptcy Court. Luckily, a wide variety of the credit counseling courses can be taken online for a minimal fee. (You can find courses that cost no more than $25 to $35.)

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.

Overview of Loan Modification Law

2010-08-13T13:13:29Z

A San Jose bankruptcy attorney provides an Overview of Loan Modification Law

A loan modification is a new agreement between the lender and borrower with respect to the monthly mortgage payments. Generally a loan modification will either decrease the monthly payments, forgive any missed monthly payments, or provide some other form of relief to an otherwise struggling homeowner. Loan modifications help prevent foreclosure by allowing the borrower a second chance at remaining current with the monthly payments.

Most homeowners who file for bankruptcy often wonder whether they can also apply for a loan modification. Loan modification law does not specifically bar the application from being processed because of a bankruptcy. This is especially important in a chapter 13 proceeding because often the borrower filed chapter 13 to prevent a foreclosure and catch up on past due payments. If the lenders application is process and accepted by the bank, there generally are no more arrears to pay through the chapter 13 plan and the homeowner does not have to worry about that aspect of the chapter 13 plan.

Applying for a home loan modification can also help alleviate financial strain placed on a lender if the monthly payments are too high. Having a loan modification approved in chapter 7 bankruptcy can benefit the homeowner in the sense that not only will they not be obligated to repay any unsecured debt, but the monthly mortgage payments can also be reduced, freeing up some additional money to be applied to necessary expenses.

Loan modifications, while difficult to obtain final approval on from your lender, can greatly help ease financial struggles facing many home owners. Even if you loan modification application is denied, it is helpful to keep applying, as the lender may approve the application the second or third time around.
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.

Liquidation and Chapter 7

2010-08-12T13:13:21Z

A San Jose bankruptcy attorney explains Liquidation and Chapter 7

Chapter 7 Bankruptcy is also known as “liquidation.” The goal of a Chapter 7 bankruptcy is to clear out the debtor’s unsecured debts. Unsecured debts includes debts such as credit card bills, medical bills, personal loans which are not secured, etc.

Why is Chapter 7 Bankruptcy Called “Liquidation”

The way the Chapter 7 bankruptcy works is: all of your property and assets which exceed the exemption limits are sold and used to pay off creditors. There are exemptions in place for a certain amount of equity in your home, your vehicles, your personal property, etc. If you own merely “the basics” then you are not likely to lose any of your assets in a Chapter 7 bankruptcy. However, if you own a fancy boat, for instance, or a second property with a lot of equity in it, then these items may be subject to being sold in your Chapter 7 bankruptcy. Consult with an attorney to find out if any of your assets are likely to be sold during a Chapter 7 Bankruptcy.

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.

How Will Bankruptcy Affect My Business?

2010-08-11T13:44:49Z

A San Jose bankruptcy attorney discusses How Bankruptcy Might Affect You Business?

Business Information: Business Entity
The first question to ask is: what kind of business entity is involved in this case? Is it a corporation, a DBA, a partnership, etc? If your business is a sole proprietorship, and merely an extension of yourself, then the assets of your business are considered your own assets. This could be very important information to consider when deciding on which chapter of bankruptcy will be most beneficial to your particular situation.

Business Information: Will I lose my business if I file for a Chapter 7?

Remember, chapter 7 bankruptcy is also known as “liquidation.” Any assets that you own and/or property which is under your name is subject to be liquidated if the value of those assets/property exceeds the exemption limits. This is why it is important to determine whether your business assets are considered the assets of a separate entity (like a corporation) or the assets of yourself, as an individual (like a sole proprietorship).

Business Information: Will I lose my business if I file for a Chapter 13?

No, you will not lose any of your assets if you file for a Chapter 13. The Chapter 13 bankruptcy is known as a “reorganization.” Therefore, even if you have a sole proprietorship, and even if the business assets exceed the exemption limits, your business is not subject to being taken from you. Instead, you will have to pay the value of those non-exempt assets to unsecured creditors via your repayment plan.

Contact an attorney to get a better understanding of how your business may be affected by bankruptcy.

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.

Overview of Bankruptcy Law

2010-08-10T14:32:03Z

A San Jose bankruptcy attorney provides an Overview of the Goal of Bankruptcy Laws:

Bankruptcy laws provide individuals with the opportunity to experience reasonable relief from debt. It also provides creditors with a fair method of payment if the debtor has assets or disposable income available for repayment.

Bankruptcy law gives debtors the opportunity to file for Chapter 7 bankruptcy once every eight (8) years and to file for Chapter 13 bankruptcy once every four (4) years. Filing for bankruptcy is essentially the debtor notifying the federal courts that he or she is unable to repay their debts in the amount that is owed.

An Overview of How to Qualify for Bankruptcy:
Bankruptcy law establishes certain requirements that must be met in order for a person to file for either Chapter 7 or Chapter 13 bankruptcy. In order to qualify for a Chapter 7 bankruptcy, the debtor’s income must be equal to or below the state’s median income level. If this income limit is met, then the debtor likely qualifies for a Chapter 7 bankruptcy.

If the debtor’s income is too high, or if they own assets that they want to keep (but would be liquidated if they filed for a Chapter 7 bankruptcy), then the debtor is likely to file a Chapter 13 bankruptcy. In order to qualify for a Chapter 13 bankruptcy, the debtor must propose a feasible Chapter 13 plan. That means, the debtor must have enough income available to fund a Chapter 13 Plan.

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.

Bankruptcy Law Guide to Different Chapters

2010-08-09T14:46:08Z

A San Jose bankruptcy attorney offers a Bankruptcy Law Guide to Different Chapters

Bankruptcy Law Guide: Why are there different bankruptcy chapters?
There are different bankruptcy chapters because there are different methods of providing individuals with debt relief. Some people want to primarily get rid of unsecured debt (things like credit cards, medical bills, personal loans, etc.) Other people want to primarily come up with a repayment plan for making up the back payments on a secured debt. Chapter 7 bankruptcy is the chapter that wipes out unsecured debts. Chapter 13 is the chapter that allows individuals to keep property via a repayment plan.

Bankruptcy Law Guide: Is it better for me to file a Chapter 7 or a Chapter 13 bankruptcy?
As stated above, the primary goal of Chapter 7 bankruptcy is to wipe out unsecured debts for individuals who do not have enough income to cover their expenses. If you qualify for Chapter 7 bankruptcy, and if you primarily wish to relieve yourself of unsecured debts. Then this is the chapter of choice for you. It is generally the quicker, less expensive, “fresh start” bankruptcy chapter.

If you primary goal is to keep a property because you have missed several months of mortgage payments, and if you have a regular flow of income, then the Chapter 13 bankruptcy may be the chapter of choice for you. The Chapter 13 bankruptcy is a repayment plan. You should see in an attorney to get a better idea of how each chapter will affect your particular situation.

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.

Is the United States Trustee an Attorney?

2010-08-06T13:46:02Z

A San Jose bankruptcy attorney answers:
Is the United States Trustee an Attorney?

The United States Trustee is the person appointed to oversee your bankruptcy case. The United States Trustee is not necessarily an attorney, however, they do make a lot of important decisions regarding your bankruptcy case.

The Trustee’s job is to primarily ensure that all of the debtors assets, income and expenses have been properly disclosed, that and that the debtor’s bankruptcy is in compliance with the bankruptcy code. The trustee will make sure that there is no presumption of abuse involved in your bankruptcy. For instance, if you have filed for a Chapter 7 bankruptcy, and if the trustee subsequently administers the means test and determines that you have enough income left over every month to pay your creditors with, then the Trustee will move to have you convert to a Chapter 13 (repayment plan) bankruptcy.

The Trustee (or someone from the trustee’s office) is the person who will interview the debtor at the 341a hearing. The trustee is also the person that you will make your plan payments to if you are filing a Chapter 13 bankruptcy.

It is always a good idea to have an attorney file your bankruptcy for you, because your attorney will most likely be familiar with the trustee’s particular requirements and procedures.

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.