California Bankruptcy Lawyer Blog

San Jose Bankruptcy Attorney comments on Foundry Stalwart Bankruptcy

San Jose residents, have you ever looked down at manhole covers and wondered who produces such things? Well, Neenah Enterprises a stalwart in iron works has been producing such iron products for cities since 1872, according to the research of a local San Jose bankruptcy attorney.

Despite its history, Neenah has recently filed for chapter 11 bankruptcy protection. Neenah cites a decline in overall sales volume as a catalyst for the filing.

The company has assets of $286.6 million and debts of $449.1 million on a consolidated basis as of Sept. 30 according to the documents filed in U.S. Bankruptcy Court. According to RTT news, the company has reached an agreement in principle with key creditor constituencies on the terms of a plan of reorganization that proposes to reduce the company's debt by approximately $220 million while providing 100% recoveries for the Company's suppliers and vendors.

According to WTAQ The owner of the Neenah Foundry says it will not layoff anyone, after filing for Chapter 11 bankruptcy protection.

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.

Just like many debtors in San Jose, athletes also face the possibility of bankruptcy. Just ask Bernie Kosar.

The former NFL and Miami Hurricanes star quarterback just had his bankruptcy changed to Chapter 7 liquidation. Documents filed September 23 show that Kosar has $9.2 million in assets and $18.9 million of debt. Initially Kosar’s petition showed he owed $1.5 million to the Cleveland Browns, $3 million to his ex-wife, and more than $9 million to a bank for bad real estate deals. Bottom line, San Jose, bankruptcy affects everyone from all walks of life.

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.

Mesa Air Files for Bankruptcy

According to USATODAY, Mesa Air Group Inc., has filed for Chapter 11 protection. While Mesa Air Group may not be as well known as Delta, US Airway, or United, Mesa flies regional routes for all three major airlines.

In filing Chapter 11 Mesa hopes to streamline its business, shed financial obligations, and become more competitive. In addition, Mesa anticipates that the filing will expedite its lawsuit against Delta, in which Mesa is seeking 70 Million in damages. In a recent statement, however, Mesa clarified that its go-Mokulele Hawaiian joint venture with Mokulele Airlines will not be included in the bankruptcy and will continue normal operations.

Over the past year shares of Mesa have traded between 1 cents and 36 cents. Mesa Shares closed Monday at 12 cents a share. Chairman and CEO Jonathan Ornstein stated that Mesa has enough liquidity to support itself during the restructuring.

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 Bankruptcy attorney comments on the bankruptcy and closure of New York’s Tavern on the Green

Central Park’s landmark restaurant and tourist magnet, Tavern on the Green, raised their glass to their last night of business on New Year’s Eve. The New York institution, formerly a sheepfold before opening as a restaurant in the 1930’s, announced its Chapter 11 bankruptcy filing in lower Manhattan on September 8, 2009, then remained open for á la carte dining and private events, before calling it quits on the very cusp of 2010.

Jennifer Oz LeRoy, CEO of Tavern on the Green, said that “the filing was the result of two factors – the extreme financial distress brought on by the current financial crisis and the City of New York’s decision not to renew our lease.”

In addition to its uber popularity with visitors to New York and Central Park locals alike, as well as touting silver screen cameos in Ghostbuters, Made, The Out of Towners and Wallstreet and others, it was one of the largest independently run and highest grossing restaurants in the United States, bringing in $38 million and serving more than 700,000 annually.

Unfortunately, its popularity and annual income were not enough to keep the LeRoys, owners since 1974, from filing Chapter 11 bankruptcy, due to its $8 million debt to a noted over 450 accrued creditors. They then lost the city-induced bid of the over the 27,000 square foot space to Dean Poll, owner and operator of Loeb Boathouse Restaurant overlooking the Central Park Lake, who plans a $25 million renovation on Tavern. There is also a dispute over use of the $19 million dollar name, to be decided this month, coinciding with a Guernsey auction to sell off décor and other amenities to pay off the gargantuan debt.

Tavern on the Green files Chapter 11 Bankruptcy Protection, tavernonthegreen.com, September 8, 2009
Lights Out at NYC’s Tavern on the Green, msnbc.com, December 31, 2009
Central Park Movie locations, about.com, January 4, 2010

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 Bankruptcy Attorney  comments on the biggest bankruptcy filings of the decade.

The first decade of the 21st century saw some spectacular bankruptcy filings among the largest corporations in the United States.  The decade began with the dot-com bust and ended with a grinding recession that took down some of Wall Street’s largest players.  The majority of the bankruptcy filings were Chapter 11 reorganizations, but there were some significant Chapter 7 liquidation proceedings.

Here is a listing of the largest bankruptcy filings of the decade that ends this week:

2001       Pacific Gas and Electric: $36.1 billion – utility was caught unable to sell energy it had purchased for more than it paid.

Enron: $65.5 billion – massive accounting fraud and insider trading scandal brought down one of the world’s leading energy companies.

2002       WorldCom: $107 billion – massive billing fraud forced the second-largest long distance company into what was then the largest bankruptcy in U.S. history.  Company changed its name to MCI and was purchased by Verizon in 2005.

Conseco: $61.4 billion – insurer branched into the mobile home financing industry which proved to be unprofitable and forced the firm into bankruptcy.

2008       Lehman Brothers: $691 billion – by far the largest bankruptcy in U.S. history was at the center of the subprime mortgage collapse.

Washington Mutual: $327 billion – the largest bank failure in U.S. history was caused by the subprime mortgage collapse and the Lehman Brother bankruptcy causing a run on the bank.

2009       Chrysler: $39.3 billion – the first U.S. automaker to file for bankruptcy since Studebaker in 1933 was aided by government intervention and was sold to Fiat.

General Motors Corporation: $91 billion – another government intervention case that resulted in the elimination of the Pontiac and Saturn brands, the sale of Hummer to a Chinese company, and the closing of the Saab unit.

CIT Group: $71 billion – lender to small and mid-sized businesses is still in bankruptcy court after losing $3 billion over two 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.

San Jose Bankruptcy Attorney  explains how the mortgage cram-down legislation on Capitol Hill can benefit those filing for bankruptcy protection.

The House of Representatives is moving forward with a mortgage “cram down” bill that has been attached to a larger financial services industry regulation bill.  If the bill is signed into law, it will significantly expand the ability of a bankruptcy court judge to alter the length of a mortgage, the interest rate, and the size of the mortgage on their primary residence for those who have filed for Chapter 7, Chapter 11 and Chapter 13 bankruptcy protection.

The mortgage industry has fought these changes, claiming that they will create even more uncertainty in an already uncertain mortgage industry still reeling from the decline of housing value, the 2008 credit crunch and the recession that has cost millions of American’s their jobs and ability to make their mortgage payments.

Bankruptcy judges are currently allowed to modify mortgages on vacation and second homes, but under the 2005 bankruptcy law, they are not allowed to modify the mortgages of primary residences. Borrowers are first required to seek a mortgage modification directly from the lender.  Under the  “Making Home Affordable Program” lenders are encouraged to reduce the mortgage monthly payment on the borrower to 31 percent of gross income by first reducing the interest rate, lengthening the mortgage term, and then reducing the mortgage amount if necessary.  This legislation gives the bankruptcy court the authority to enact these changes during a bankruptcy discharge if the borrower has already pursued a mortgage modification.

Frank Backs Mortgage Cram-Down in Finance Reform Bill, Bloomberg.com, December 8, 2009

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 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 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 Bankruptcy Attorney comments on news that the U.S. taxpayers are paying for General Motors and Chrysler’s bankruptcy consultants.

After investing more than $50 billion of taxpayer funds to keep General Motors and Chrysler afloat, the U.S. government has spent more than $120 million to pay the bankruptcy attorneys and other consultants involved in the automaker’s Chapter 11 bankruptcy filings.

Recent court filings and records show that Jones Day, the firm that supervised Chrysler’s 41-day trip through Chapter 11 bankruptcy has been paid nearly $1 million per day that the firm was under bankruptcy protection.   General Motors’ lead counsel, Weil, Gotshal & Manges, has been paid nearly $72 million to date and $3 million in bills are pending.

But bankruptcy isn’t limited to the attorneys. Numerous bankruptcy advisors, financial advisors and investment bankers are all part of the Chapter 11 restructuring process, and all have invoiced significant amounts in the automaker’s cases.  Chrysler and General Motors’ bankruptcy consultants, financial advisor and investment bankers have all been paid more than $60 million for their work on negotiating the employee Voluntary Employee Beneficiary Association and the sale of Chrysler’s most attractive assets to Fiat.

The process will not be over soon.  Disposal of the less-desirable assets may take years, as the United Airlines bankruptcy, filed in 2002, is still working through the removal of some of the company’s liabilities.  The Chapter 11 process can be lengthy and expensive when dealing with large companies with significant liabilities that are not easily sold or disposed with.

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 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 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 Bankruptcy Attorney comments on the arrest of Peter Pocklington on charges of bankruptcy fraud

Peter Pocklington, former owner of the NHL’s Edmonton Oilers, and (in)famously known to Canadian hockey fans as the man who traded Wayne Gretzky, has been arrested on charges of bankruptcy fraud related to his 2008 California personal bankruptcy filing.  In that filing Pocklington listed debts of $19.6 million and assets of $2,900.

Bankruptcy fraud occurs when you attempt to hide assets from the court to avoid having them be part of the bankruptcy proceedings. When you are preparing to file for bankruptcy, you should be as thorough as possible in listing all of your assets as well as your liabilities.  Your bankruptcy attorney can help you conduct a systematic review of all of your assets including homes, property, cars, investments and savings that can prevent an indictment for misstating your assets.  In this case, Pocklington is facing up to 10 years in prison if convicted on all of the charges.

Another result of bankruptcy fraud is that the court can void your bankruptcy decree and allow your creditors to resume collection actions against you.  Concealment of assets is the most common method of bankruptcy fraud.  Typically a person will transfer assets to friends or relatives to avoid bankruptcy liquidations.  Some choose not to list valuables because creditors cannot liquidate assets in a Chapter 7 or Chapter 13 bankruptcy filing if they are not aware of the assets. Either type is punishable by a fine of up to $250,000 and up to five years in prison for each count.

Peter Pocklington arrested in California for bankruptcy fraud charges, Vancouver Sun, March 11, 2009

Contempt motion on hold in Pocklington bankruptcy, Reuters.com, April 7, 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 Jose Bankruptcy Attorney comments on the relationship between payday lending and bankruptcy filings.

The Silicon Valley Community Foundation recently released a report that shows that individuals who have approved payday loans are far more likely to file for bankruptcy within two years that people who do not utilize payday lenders.  The report claims that the average 400 percent interest rate that California payday lenders charge traps those taking out the loans into a cycle of debt and interest that typically ends in a Chapter 7 or Chapter 13 bankruptcy filing.

California, unlike more than a dozen states and the District of Columbia, has not adopted an interest rate cap of 36 percent.  California does have a cap of $300 for a payday loan, but the interest rate is not capped, which often leads a typical individual to pay $800 to pay back an initial $300 loan which is often due within two weeks.  Many individuals are unable to repay at that times due to an ongoing cash crisis, and renew the loan, which takes them farther into debt.

Bankruptcy is often the only option left for people caught in this debt spiral.  Payday lending is most prevalent among minorities and single women, who often have fewer credit options than wealthier areas.  A Chapter 7 liquidation or a Chapter 13 reorganization can reduce or eliminate the payday lending debts, which quickly overwhelm the borrowers who are struggling to keep a roof over their heads and food on the table, according to the report.

Community Foundation and Public Interest Law Firm Release Report on Payday Lending, www.siliconvalleycf.org.

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.

Oakland Bankruptcy Attorney comments on a New York bankruptcy that could cost CalPERS more than $500 million

CalPERS may lose the $500 million it invested in the Manhattan apartment complex called Peter Cooper Village and Stuyvesant Town.  CalPERS was part of an investment group that purchased the complex for $5.4 billion in 2006.  CalSTRS, another state public pension fund, has already written of the $100 million it invested in the deal.  The project, owned by a partnership led by Tishman Speyer Properties and BlackRock Inc. is expected to go into default within the next few months and is expected to file for Chapter 7 or Chapter 11 bankruptcy protection.  The value of the real estate has dropped to an estimated $2.1 billion from the $5.4 billion purchase price 3 years ago.

This is not the first significant real estate loss that CalPERS has suffered this year.  The public pension fund lost nearly $1 billion on one real estate project, known as LandSource, which filed for Chapter 11 bankruptcy reorganization protection earlier this year.  CalSTRS has lost 43% on its real estate holdings this year, and the two funds have lost more than $100 billion during the past fiscal year as their real estate, stock market and other investments declined in value.  Much of the decline was in stocks and other financial instruments, but their real estate portfolios have shrunk dramatically in value as the economy has slid into recession.

CalPERS Could Lose $500 million on N.Y. Real Estate Deal, Sacramento Bee, October 15, 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 Jose Bankruptcy Attorney explains how bankruptcy may benefit couples filing for divorce.

The current economic downturn is affecting many couples considering filing for divorce in ways they had not expected.  The real estate and investment assets they hoped to share in a division of property settlement may have dramatically shrunk in value, and the debts they have incurred may be much larger than they anticipated. All of this means that your bankruptcy attorney will be extremely valuable as you consider your divorce proceedings.

In a community property state such as California, the debts of a couple will be shared as equally as the assets.  That means couples with heavy debt loads may want to consider a bankruptcy filing to clear out the debts before they file for divorce.  A Chapter 7 bankruptcy filing can clear out a large unsecured debt load.  A Chapter 13 bankruptcy filing may allow a couple to reduce their debts and save their home from foreclosure.  An added benefit of the bankruptcy filing may be that the debt removal may make the divorce process much less contentious.

A joint bankruptcy filed before divorce proceedings is also less expensive than two separate bankruptcy filings, and eliminates the possibility that one of the spouses may later file for divorce and the creditors may pursue the full repayment from the divorced spouse.  This can be prevented by use of indemnity clauses in the divorce decree that a bankruptcy judge may consider if you are forced to repay debts after a divorce decree is granted

Your divorce attorney can help you structure a settlement that can guard against a former spouse ruining your credit rating by failing to repay debts.  Consulting with an experienced bankruptcy attorney will make that process much smoother.

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.

Fremont  Bankruptcy Attorney comments on how the Bernard Madoff Ponzi scheme has landed an associate in bankruptcy court

In 2008 the most massive Ponzi scheme ever created in the United States came crashing down on financier Bernard Madoff and his associates.  Madoff’s scheme cost investors upwards of $65 billion and the federal government and private lawsuits are seeking to recover as much as possible.  Last week a bankruptcy court judge froze the assets of Stanley Chais, a Beverly Hills money manager accused of directing hundreds of millions of dollars from his clients into Madoff’s nonexistent investment fund.

The bankruptcy court judge overseeing Madoff’s Chapter 7 bankruptcy filing allowed Chais and his wife access to $100,000 of their accounts to cover legal and living expenses, but has frozen the remainder of their assets as the case moves through bankruptcy court. Court documents accuse Chais of funneling more than $800 million of his clients’ money to Madoff and his bankrupt investment fund.  A forensic audit also shows that more than $45 million was transferred from Madoff to Chais in 2008 as the Ponzi scheme was collapsing.

The Securities Investor Protection Corporation trustee, Irving Picard, is seeking the money transferred from Madoff to Chais to repay investors defrauded as part of Madoff’s investment scheme.  The SIPC has filed suit against Madoff, family members, and numerous investment firms and advisors that were funneling money to Madoff’s investment fund.

Judge freezes assets of Madoff figure Stanley Chais, LATimes.com, October 9, 2009

SIPC v. BERNARD L. MADOFF INVESTMENT SECURITIES LLC Madoff Watch, Law.com

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.

Oakland Bankruptcy Attorney offers insight into bill before Congress that will change the way student loans are handled in bankruptcy filings.

In a Chapter 7 or Chapter 13 bankruptcy filing, federal student loans cannot be discharged as part of the bankruptcy settlement process.  The 2005 bankruptcy reform law also gave that same protection to virtually all private student loans which typically do not have the favorable terms that federally guaranteed loans carry such as low fixed interest rates, flexible payment plans and other consumer protections.  Private student loans often carry higher, adjustable interest rates and offer less payment flexibility than many consumer loans.

Rep. Steve Cohen (D-Tenn) is offering legislation that will remove the special bankruptcy protection that the private loans were given because it gave private student loan lenders a “favorable, unusual” over borrowers, especially when compared to other types of consumer loans.

There have been numerous news stories about the onerous terms that many private student loans carry.  These loans can quickly more than double the original loan amounts when interest and penalties for late payments or underpayment kick in, leaving students overwhelmed with debt that they have no hope of repaying.

President Obama is advancing legislation that would remove private banks from the student loan business entirely, and have all of the student loans be issued directly from the federal government.  The Student Aid and Financial Responsibility Act, passed by the House of Representatives and currently before the Senate, would start that process beginning next year.

The good news for students is that the loans will carry more favorable terms than the private loans that some have used to cover the difference between the financial aid packages and tuition costs.  The loans will still not be eligible for discharge in bankruptcy, but the costs of the loans will be lower.

Rethinking Bankruptcy and Student Loans, Inside Higher Ed, September 24, 2009

Students tell Franken of financial woes, Morris SunTribune, October 12, 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 Diego Bankruptcy Attorney comments on last week’s bankruptcy hearing for Orange County Register parent company.

Last week a bankruptcy court judge in Delaware overseeing the Chapter 11 bankruptcy filing of Freedom Communications Holdings Inc. declined to issue a ruling on the contested confidentiality and documents that are part of the bankruptcy case.  Freedom Communications Holdings is the parent company of the Orange County Register, and several other newspapers and television stations.  The company filed for bankruptcy protection in September citing steep drops in advertising revenue and debts of more than $1 billion.

The company filed a prepackaged bankruptcy agreed to in advance with a majority of the company’s lenders that will forgive most of the $770 million in bank debt in exchange for giving control of the company to the lenders.

The disagreement between Freedom Communications Holdings and its creditors, which includes the federal Pension Benefit Guaranty Corporation, centers on the financial documents that the lenders are requesting.  The company has asked all of the creditors to sign a confidentiality agreement before receiving the information, and the PBGC is contesting the agreement because it believes it will inhibit the agency’s ability to report to the Congress and the Executive Branch.
If the issue is not resolved, the PBGC, a potential $100 million claimant in the case, may be removed from the creditor’s committee to allow the case to go forward.   The judge has scheduled another hearing on October 14 in the case.

Hearing held on Freedom bankruptcy documents, KMPH.com, October 8, 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 Bankruptcy Attorney comments on the dramatic rise in bankruptcy filings in Southern California

Before you take the step of filing for bankruptcy, it is wise to read up on the law, the different types of bankruptcy filings (Chapter 7, Chapter 11, Chapter 13) and the options you have within the bankruptcy law.  Here are some resources for you to use that will help you ask more insightful questions of your bankruptcy attorney, should you decide to file for bankruptcy protection.

The American Bankruptcy Institute has a web site for consumer bankruptcy that is full of useful information on the bankruptcy process.

Some good books on the topic of bankruptcy include:

CHAPTER 13 BANKRUPTCY, 9TH ED. by Stephen Elias and Robin Leonard

HOW TO FILE FOR CHAPTER 7 BANKRUPTCY, 15TH ED. by Stephen Elias, Albin Renauer and Robin Leonard

THE PERSONAL BANKRUPTCY ANSWER BOOK by Wendell Schollander

Credit After Bankruptcy by Stephen Snyder

These resources will provide you with a wealth of information that you can use to determine if bankruptcy is the right solution for you.  They will also help you be an informed consumer as you meet with your bankruptcy attorney.  Bankruptcy is not a do-it-yourself proposition.  The risks are too high and the rules are too stringent for you to go it alone.  Consult an expert bankruptcy attorney if you are considering filing for bankruptcy.

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 Jose Bankruptcy Attorney explains how the 2005 Bankruptcy Reform law has failed

In 2005, significant changes to the federal bankruptcy code were enacted at the behest of the credit card companies.  The goals of the reform were to reduce the number of bankruptcy filings and to move more people from Chapter 7 liquidation filings to Chapter 13 reorganization filings.  Analysis of the data shows that the law has had no effect on either goal.

The number of bankruptcy filings has reverted to the mean number that existed prior to the law’s enactment.  The percentage of Chapter 13 bankruptcy filings has been in a steady decline following the post-enactment spike and has also reverted to the mean that existed prior to 2005.  So who has been the big winner in this?

It appears that the credit card companies have been the big winners.  While the number of Chapter 13 reorganization plans, complete with repayment schedules has dropped, the credit card companies have continued to collect interest and payments during the lengthened process that the reform law has created.  Many people file a Chapter 13 reorganization and cannot live under the payment plan.  After two years they can file for a Chapter 7 liquidation, but the credit card companies receive two years of payments prior to the Chapter 7 filing.  At the exorbitant interest rates charged on many cards, those two years of payments make all the money they spent on lobbying Congress for reform worthwhile, despite the fact that the bankruptcy filing numbers have not appreciably changed.

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 Diego Bankruptcy Attorney comments on the dramatic rise in bankruptcy filings in Southern California.

The prosperous Southern California region has not escaped the wrath of the recession that began in 2007. Recent data from California’s Southern District Bankruptcy Court, which covers San Diego and Imperial counties shows that bankruptcies were up 63 percent for the year ending July 31 over the previous year’s totals.

The types of bankruptcies are different than those filed for in years past. In the past most of the bankruptcy filings were from people with large credit card debt, medical bills or single mothers who were not receiving spousal or child support. The current filers are often individuals who own multiple homes and have seen their property values drop dramatically. The combination of declining incomes and falling property values has left many individuals “upside down” where they owe more than they have or can repay.

The loss of property values has complicated the bankruptcy process for many filers. With real estate values below the loan amounts, the properties cannot be easily sold to pay off the debts. This leaves many filers in the situation of not having a clearly-defined path at the outset of the bankruptcy filing process. Their bankruptcy attorneys have to do a careful analysis of their situation to determine whether a Chapter 7, Chapter 11 or Chapter 13 bankruptcy best fits their situation.

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 Bankruptcy Attorney explains how small business owners may get hit with one-two bankruptcy punch.

Small business owners who may be considering filing for a business bankruptcy need to be aware that the business bankruptcy filing may force them into a personal bankruptcy filing, depending on how their business is structured.

Even if your business is incorporated as an LLC, SubChapter S or SubChapter C corporation, you may still be personally liable for the debts of the company. Many company credit cards and lines of credit for small businesses use the owner’s guarantee of the debt as a means of extending credit. So, if you have taken out a line of credit and your business files for bankruptcy, the bank can force you to repay the debts of the business, even though the business is a separate corporation or legal entity.

If you business files for a Chapter 11 reorganization, the banks may be more lenient than if you file for a Chapter 7 liquidation. In a liquidation, the assets of the business are sold and the proceeds are used to pay the creditors. If your assets do not pay off your creditors, which is typically the case, the creditors can pursue the debts that have been personally guaranteed by the owner. The addition of those debts, plus the loss of income from the business, may force the owner of the business into a Chapter 7 or Chapter 13 filing of their own.

If at all possible, avoid personally guaranteeing any business debts. This keeps the business debts out of your personal finances. If you have already signed for these debts, consult a bankruptcy attorney to find out what steps you can take to avoid a personal bankruptcy if your business has to file for bankruptcy protection. It may not be too late, and your bankruptcy attorney can guide you through the process.

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 Jose Bankruptcy Attorney explains how you can keep your home during a bankruptcy.

Filing for bankruptcy no longer automatically means you will lose your home. It is possible to keep your home in a Chapter 7 bankruptcy filing, but far more likely in a Chapter 13 bankruptcy filing.

A Chapter 7 bankruptcy filing is a liquidation where all of your assets are sold and the proceeds used to pay off creditors. If you have equity in your home, it is likely that the mortgage holder will sell the property and use the proceeds to pay off creditors. However, if you owe more than the current value of the home and are current in your payments, it is possible that the mortgage holder will allow you to keep your home as long as you continue to remain current in your payments.

In a Chapter 13 bankruptcy filing, you are asking the court to allow you to make payments to the court, which takes your payments and disburses them to creditors. Chapter 13 is essentially an installment plan that will allow you to satisfy all of your debts within a three to five year time frame. If you stay current with your payments, it is possible for you to keep your home during a Chapter 13 bankruptcy. However, if you fall behind, you can trigger a reopening of your bankruptcy which would cancel the terms of your Chapter 13 bankruptcy filing.

One other note: Mortgage companies are far more amenable to a loan modification request after a bankruptcy filing than they are prior to the filing. It may be possible to keep your home and rework the terms of the loan with your lender. Your bankruptcy attorney can guide you through this process.

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.