California Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney gives some tips to assist you with your bankruptcy reorganization plan.

As explained in yesterday's post, a bankruptcy reorganization plan is needed as part of filing a Chapter 11 bankruptcy. Even though it may seem overwhelming to put together the reorganization plan, you should take a deep breath and use the following five tips as a basis for your document checklist:

1. Classify each outstanding debt and creditor as:
Unsecured (i.e. line of credit; doesn't always need to be paid in full)
Secured (i.e. real estate; usually needs to be paid in full), or
Priority (ie. taxes or other administrative costs, and must be paid in full first)

2. List each asset and enclose expense statements and liabilities. This is also called financial disclosure statements. Be sure to include details and evidence to prove that the reorganization is possible to achieve.

3. Include a statement of current financial situation.

4. Include current copies of your income statements. Outline and amount of money that will be allotted to the repayment of debts.

5. If you modify any portion of your plan, make sure it is in alliance with the bankruptcy code.

We can answer all your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, bankruptcy in California, call us at 1800.941.6730 and we will be more than happy to offer you a free consultation over the phone. You can also fill out a free online evaluation at our website, www.sagarialaw.com, or request a free face to face appointment at a Sagaria Law office location close to you. We have bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution needs.

A San Jose bankruptcy attorney explains the contents of a reorganization plan.

A reorganization plan, or formally, Plan of Reorganization, is a requirement of Chapter 11 bankruptcy. This bankruptcy status can be used by businesses or individuals in financial trouble, and must include the terms in which to make payments to creditors, and details that lay out the financial situation.

The Plan of Reorganization must include:
- A catalog of monies owned, and to which creditors
- An inventory of all assets
- An account of entire updated financial situation
- Present day income statements
- Present day expense statements

The Plan or Reorganization should be organized in an easy to understand format. In the catalog of monies owed, classify each creditor by the following: secured, unsecured, and priority debts. Priority debts are things like taxes or administrative costs. Unsecured debts are things like credit cards, and secured debts are things like mortgages and car loans. It is very important that any required revisions of the plan of reorganization follow the bankruptcy code.

At Sagaria Law, we offer an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting California. If you need help regarding bankruptcy in California, contact us at 1800.941.6730 for a free consultation or visit us online at www.sagarialaw.com to request a free in person appointment at a Sagaria Law office location nearest you. We can answer your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation to quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, California!

A San Jose bankruptcy attorney blogs about reorganization plans in general.

A reorganization plan is used by businesses to consider the proper foundation of the business. Usually, this reorganization plan is compiled when there are financial or structural issues, but is ideally used in conjunction with the vision and ultimately the evolution of the business. The purpose of the reorganization plan is to ensure a proper balance within the system. A reorganization plan, as it relates to bankruptcy, can help an individual or business by providing a detailed payment plan to regain financial dependency.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or 1800.941.6730 and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. Sagaria Law can assist you with all aspects of your bankruptcy case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, lien stripping, a cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist in all of these important areas. Please complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney gives a brief explanation of bankruptcy exit plans.

Bankruptcy exit plans are designed when a court finds a debtor to be financially insolvent. Certain details must be included on the paperwork, and the defendant must follow the plan set in the ruling to the best of his ability.

The bankruptcy exit plan is a blueprint guide that allows a person to return to financial stability. It spells out certain payments the person must make, which payments have been forgiven, and sets forth reasonable future payment terms on most debts. If a person cannot follow the bankruptcy exit plan, he remains in bankruptcy and may have to find other options that allow him to discharge debts.

Bankruptcy exit plans can be altered as long as there is an agreement between the debtor and the creditor. In general, the person (or company) will remain in bankruptcy until all the debts are paid off. A judge may allow an early exit if a company or individual can demonstrate that it will return to solvency in the near future. When the terms of the bankruptcy exit plan are executed, the person can start rebuilding their credit rating.

If you would like more information on this topic or other bankruptcy topics, please contact one of our California offices at 1800.941.6730. We at Sagaria Law can connect you with one our our experienced California bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting California.

San Jose Bankruptcy Attorney comments on the post-bankruptcy turnaround of former television star Willie Aames.

Willie Aames, star of “Eight is Enough” and “Charles in Charge” recently held a yard sale to sell off his belongings following a Chapter 7 bankruptcy, divorce and violent suicide attempt.    Aames has filed for bankruptcy protection twice since 1997 and his wife left him after his most recent bankruptcy filing.

Aames is currently undergoing a life transformation and is studying to become a financial advisor.  While that may seem ironic, Aames views it as an inspirational experience for those who may be going through similar circumstances.  “As of Dec. 12, I had no wife, no family, no car, no computer, no home, no electricity, no gas and no way to obtain any of it,” Aames said. “How do you start over from scratch? I didn’t know. But I thought that if I made it, maybe, just maybe, it would be helpful to some people.”

Aames post-bankruptcy plan is underway.  He has passed the Series 7 and Life and Health examinations, which are two of the three examinations necessary to become a financial advisor.  His story was chronicled on a television show on VH1 last week.

Aames has downsized his life, moved into a much less expensive apartment, and is studying hard to make the transition to a financial advisor with the help of executives from Waddell & Reed and Stifel Nicolaus & Co.

Life after bankruptcy for Willie Aames hasn’t been easy.  But he is making headway toward his goal.

Back from bankruptcy, Willie Aames looks to make change, Kansas City Star, November 5, 2009

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, a 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 bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Francisco Chapter 11 bankruptcy Attorney Discusses the Sick Fascination with the Chrysler and GM Bankruptcies

There is a sick fascination with the Chrysler and GM chapter 11 bankruptcies. The Chrysler one in particular is of special interest because the US government, including President Obama have taken an active hand in their bankruptcy. The government has put in several billions of dollars in loans and bail out money to ensure that Chrysler survives. President Obama has verbally come out supporting the bankruptcy filing and condemning the creditors. Even foriegners are involved as Fiat is trying to buy part of Chrysler. After 35 days, the Chrysler Bankruptcy has hit a wall. Several creditors have filed legal objections to prevent the bankrupcty to continue. About 300 Chrysler franchise owners have also filed objections to the sale or closing of their dealerships. These objections reflect some of the conflicting interests in the shut down of a major US company. One creditor, Indiana State Pension, has filed an objection because they have about $45 million at stake (out of several billions) which (they believe) are not being treated as well as other less preferred creditors. While this claim is a common one in bankruptcy court, it has caught the interest of public because it has all the makings of a David and Goliath showdown in court. As for the dealerships, they claim that they cost Chrysler nothing because Chrylser does not actually own those cars as the dealers have to pay for them. The Dealerships only help Chrylser by selling its product and closing the dealerships will amount to hundreds of lost jobs. Again, the public is interested because nobody wants to see empty lots and unemployed neighbors.

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 how the NHL's Phoenix Coyotes filed for protection under Chapter 11

Every part of the country no matter in what field that you work in is affected by the current downturn in the economy. Even sports teams are not isolated from the perils of bankruptcy.
In the week of May 12, 2009, the NHL's Phoenix Coyotes filed for protection under Chapter 11. Perhaps if Chrysler's bankruptcy hadn't been stealing the headlines this item would have made more waves. What makes this case interesting, obviously, is the fact it is a professional sports franchise. As such, there are a lot of big time sports stars that are waiting for their paychecks until the Bankruptcy Court approves the payment of pre-petition wage claims. None of those names is bigger than the Great One himself, Wayne Gretzky. Gretzky is in the hockey hall of fame, but he still may not get paid for all those goals scored. In total, the Coyotes have asked to pay over half a million dollars in pre-petition wages. Along with his salary, Gretzky is also a creditor of the estate to the tune of $8 milliion in deferred compensation. A Chapter 11 bankruptcy is a repayment plan that has to accepted by all the creditors as well as the bankruptcy trustee. Therefore, until the plan is adopted, The Coyotes are going to have to come up with the money to play their players.

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 Discusses As Bankruptcy Judge Approves Disclosure Statement, Delta Moves Closer Toward Exiting Chapter 11 Bankruptcy Protection

Delta Air Lines can begin soliciting votes for its creditors to approve its bankruptcy reorganization plan. The airline carrier plans to emerge from bankruptcy in April. The disclosure plan, which was approved by the judge this week, will be sent to creditors.

According to attorneys for the Atlanta-based company, all formal, informal, unfiled, and filed objections had been resolved. Among the objections, were filings from Travelocity, several banks, the city of Los Angeles, and the county and city of Denver.

Delta first filed its disclosure statement and reorganization plan last December. Since then it has made two amendments. It has also managed a takeover bid by US Airways Group, which withdrew its bid for Delta last month after Delta’s creditors announced that it would support Delta’s plan to emerge from bankruptcy as a solo company.

Creditors can vote on the reorganization plan until April 9. The plan also includes Delta’s plans to give creditors new stock upon its exit from Chapter 11.

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Fremont Bankruptcy Attorney Discusses Northwest Airlines Submits Bankruptcy Reorganization Plan

NWA has filed its Chapter 11 bankruptcy reorganization plan. The airline company says that it plans to emerge from bankruptcy protection during the second quarter of 2007 as an independent company. NWA also says that it plans to eliminate unsecured debt by paying its unsecured creditors using common stock in the reorganized company. Preferred and common shareholders, however, will not receive anything.

A US Bankruptcy Court gave NWA an extension until February 15 to file its disclosure statement which will detail its reorganization plan for the public.

On Friday, NWA said that the plan included new, cost-saving lease agreements with airports and other facilities, as well as purchase agreements with engine and aircraft manufacturers.

Since filing for bankruptcy protection in 2005, NWA says that they succeeded in restructuring its fleet, removing $2.4 billion in yearly costs, significantly strengthening its balance sheet, and entering into new aircraft purchase agreements. New labor accords are also expected to save the airline carrier $1.4 billion each year.

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San Jose Bankruptcy Attorney Discusses Bankruptcy Exit Plan By Adelphia Is Approved By Federal Bankruptcy Judge

A federal bankruptcy judge has approved Adelphia Communication Corp.’s plan to pay its creditors and conclude one of the largest bankruptcy cases in U.S. history. Adelphia, formerly the fifth largest cable television company in the United States, had filed for bankruptcy protection from creditors in 2002.

Last July, Adelphia sold substantially all of its cable operations to Time Warner Inc. and Comcast Corp. for $17.6 billion in cash and shares in Time Warner’s cable unit. From this amount, $15 million of this will be used to pay creditors. After paying its debts, Adelphia will terminate its business. In July 2004, Timothy Rigas (the finance chief of Adelphia at the time) and his father John were convicted of securities fraud and conspiracy.

CBSnews.com offers the following timeline of key events that led to Adelphia to file for bankruptcy:

1952

John Rigas, operating a small theater in Coudersport, Pa., buys a cable franchise on a friend's advice. At the time only 60 small cable systems exist in the United States. Rigas and his brother, Gus, name their company Adelphia, Greek for "brothers."

1983

John Rigas buys out Gus Rigas' interest. Later, his sons — Michael, Timothy and James — become executive vice presidents, directors and principal stockholders.

1994

John Rigas becomes majority owner of the Buffalo Sabres hockey team with a $15 million investment.

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