California Bankruptcy Lawyer Blog

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.

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 81% rise in small business bankruptcies in California

Small businesses continue to be hit by tight credit markets and a recession that is deeper and longer than any in recent memory.  California has been especially hard hit during the current economic downturn.  Small business bankruptcies have risen 81 percent over the previous year in the 12-month period ending September 30.  The nationwide rise in bankruptcy filings is up 44 percent, according to Equifax, Inc.

Experts estimate that the actual number is higher since many small business owners file for personal bankruptcy rather than for corporate Chapter 7 or Chapter 11 protection.  Many small business owners have self-financed and used personal lines of credit or home equity to finance their businesses, and end up seeking Chapter 7 or Chapter 13 bankruptcy protection for their personal finances.

The Obama Administration is attempting to free up capital for lending by appealing directly to banks, especially those that were given bailout funds as part of the Troubled Asset Recovery Program.  President Obama has appealed to the heads of several banks including Wells Fargo, headquartered in California, which has been especially hard hit.

California has nearly doubled the number of small business bankruptcy filings in the period that ended September, 2009.  Over the last year, the Los Angeles, Riverside/San Bernardino and Sacramento metropolitan areas have led the nation in small-business bankruptcy filings.

Small-business bankruptcies rise 81% in California, Los Angeles Times, December 22, 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 the decline in November bankruptcy filings.

Bankruptcy filings were down in November, but 2009 is still on pace to post a four-year high in bankruptcies, and may reach a total of 1.5 million for the year.  The number of bankruptcies is the highest since the 2.08 million bankruptcies filed before the 2005 bankruptcy reform law went into effect.

The number of bankruptcies was down 12 percent from October, but up 26 percent from November, 2008, according to Automated Access to Court Electronic Records, which is part of Jupiter eSources LLC in Oklahoma City. Total bankruptcy filings for 2009 are at 1.33 million, up 21 percent from 2008.

Commercial bankruptcies declined 13 percent from October and are seven percent below the yearly average of 6,424 per month.  According to AACER, From January to November this year, 71 percent of U.S. bankruptcy filings came under Chapter 7, while 28 percent came under Chapter 13 and most of the rest under Chapter 11.

The total number of bankruptcy filings for the third quarter rose 33 percent over the third quarter of 2008.  The 45,510 business bankruptcies recorded during the first three months of 2009 already exceed the total for 2008, and the number of consumer bankruptcies is 33 percent higher than the same time period in 2008.

Given that bankruptcy is a lagging economic indicator, the number of consumer and business bankruptcy filings may continue to climb for a year or more after any economic recovery takes hold.

US bankruptcies dip in Nov, may hit 1.5 mln in '09, Reuters.com, December 4, 2009

TOTAL BANKRUPTCY FILINGS UP 33 PERCENT IN THIRD QUARTER, Abiworld.com, November 25, 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 advises consumer to watch Supreme Court ruling on whether student loans can be discharged in bankruptcy.

The U.S. Supreme Court recently heard arguments on what form of hardship hearing must be used to allow a student loan to be discharged in bankruptcy.  Current federal law does not allow for student loans to be discharged without a hardship hearing to demonstrate that repaying the loan would create an undue hardship on the borrower.

The case before the court comes from a 1992 bankruptcy filing by Francisco Espinosa, a student who attended an Arizona trade school, and after amassing more than $13,000 in student loan debt, filed for bankruptcy protection.  The bankruptcy court judge allowed him to pay off part of the loan and discharge the remainder in his bankruptcy when the student loan lender agreed to the bankruptcy plan and raised no objections to the bankruptcy filing by Espinosa

The issue is closely watched by observers on both sides of the issue.  The U.S. Department of Justice sided with the lender before the Supreme Court, arguing that the U.S Department of Education guarantees the loan, and without the bankruptcy court protection, many lenders would refuse to fund student loans.

Espinosa’s attorney argued that once a bankruptcy discharge is finalized, it cannot be reopened based on any errors that a judge may have made.  A ruling on the case is expected by summer.

Supreme Court to decide on student loans and bankruptcy,  USA Today,  December 2, 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 the rise in business bankruptcy filings in October.

Despite the national economy’s growth in 3rd quarter GDP, the number of businesses filing for bankruptcy protection in October rose 7 percent to 7,771 from the 7,271 reported in September.  The increase in bankruptcy filings follows two months of declines, and is a sign that the economy still has much work to do to return to the growth seen earlier in the decade.
The tight credit markets are receiving much of the blame for the continued business bankruptcy filings.  Despite billions of dollars distributed to banks and other financial institutions, commercial credit markets remain very tight, and many businesses are struggling to keep the lines of credit they have, and the prospect of securing new lines of credit is not good.

The numbers are even worse when compared to October, 2008.  Business bankruptcies, both Chapter 11 and Chapter 7, rose 24 percent over that time period.  Business bankruptcies tend to be a lagging economic indicator, and analysts expect several more quarters of increases in bankruptcy filings.  The real estate and retail sectors seem to be the hardest hit, and analysts expect another rise in retail bankruptcies if the holiday shopping season disappoints, as many expect.

Bankruptcy filings for the 10 months of 2009 are up 16 percent over last year.  The total number of October bankruptcies, including both personal and commercial filings, increased 20% from the same month last year. The number of filings last month, 130,199, is the most total filings since March, and the second-highest figure recorded since the beginning of 2006.

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 Francisco Bankruptcy Attorney offers insight into the drop in bankruptcy filings in the third quarter.

According to Automated Access to Court Electronic Records, an Oklahoma City bankruptcy management and data company, the number of business bankruptcy filings fell 4.5% in the third quarter of 2009.  This is the first month-to-month decline in the number of filings since November-December of 2006.

However the number of Chapter 7 and Chapter 13 consumer bankruptcy filings rose 2%, continuing a string of increases in the number of filings.  Since the enactment of the 2005 Bankruptcy reform laws, there had been 15 consecutive quarterly increases in the number of bankruptcy filings nationwide. While the number of consumer bankruptcy filings did rise, the 2% gain was significantly smaller than the 15.4% increase between the first and second quarters of 2009.  The slowing of the increase, coupled with rising home mortgage applications and a reduction in the new jobless benefit claims offers some hope that the worst of the economic downturn may be behind us and that the economy is beginning to rebound.

California had the third-highest year-over-year increase in per capita filings, behind Nevada and Arizona.  Arizona had the largest average filings per month increase with a 72% rise year-to year.

Some analysts believe that the 2006 and 2007 bankruptcy filings were artificially low because many people rushed to file in advance of the 2005 bankruptcy reform law changes.  That rush to file took many applicants who may have delayed their filings and put them into the bankruptcy process under the old rules.

Bankruptcy filings drop, giving hope of recovering economy, McClatchyDC.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.

San Jose Chapter 11 Bankruptcy Attorney discusses GM’s Speedy Emergence from Chapter 11 Bankruptcy

Bankruptcy experts are saying that General Motors’ (GM) 40-day stay under the protection of Chapter 11 bankruptcy laws is the fastest emergence from bankruptcy protection for a company of its size in U.S. history. GM beat Chrysler’s record by 2 days.

GM was able to emerge from bankruptcy quicker than anyone expected by creating a new company and transferring all of its high-producing to that company. The remaining “old-GM” assets that were not assumed by the new company will to be sold to pay GM’s creditors.

In order for the new GM to emerge, the United States Government provided GM with $50 billion in U.S. government loans. As a result, The U.S. government holds a 61% controlling interest in the new GM. The Canadian government also has an 11.7% interest in the company, the United Auto Workers Union (UAW) controls a 17.5% and the remainder of the company went to GM bondholders.

The new GM believes it will be able to turn a profit even in the current economic climate given its new leaner structure. Through the restructuring process, GM was able to relieve itself of millions of dollars of under-producing assets, oppressive contracts, and massive debt. The new GM is looking to differentiate itself from other automobile manufacturers by committing to an environmental focus and green technology.

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 Talks About Southwest and Frontier Airlines

As a possible sign that the economy is turning a corner, Southwest Airlines made a bid of $113.6 million to buy Frontier Airlines. Frontier Airlines has been operating under Chapter 11 bankruptcy protection since April 2008. The bid is good news for Frontier Airlines because the more money it can raise, the better the chance that the company and all its employees can survive the chapter 11 bankruptcy. Although the purchase may mean the eventual demise of the Frontier name as Southwest absorbs its planes and routes. This move would help Southwest gain market share including busy Chicago.

The real news by the offer is that Frontier already had an offer of $108.8 million but Republic who would have allowed Frontier to keep operating under its own name. When there are multiple bidders then that is a sign that competitors are healthy enough to expand or that there is credit flowing. Either would be a distinct difference from the current news of global slowdowns or lack of credit.

At this time, it is too soon to tell but if companies in bankruptcy can emerge (such as Ford) or be brought (such as Frontier) then bankruptcy will no longer mean one foot in the grave, just an opportunity to relaunch.

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 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 Jose Bankruptcy Lawyer Discusses Six Flags Theme Park Filing for Bankruptcy

It's the summer and there's nothing better than heading out to your local theme park for some crazy rides. But if you're headed to a Six flags Theme Park, you better enjoy it while you can because even they are not insulated from the worsening economy. The New York Times reports that Six Flags, the big theme park operator, filed for bankruptcy in early Saturday morning in Delaware after failing to reach an agreement with lenders over a plan to reorganize its debt outside of court. Six Flags became only the latest company to prove unable to cope with its debt load at a time when previous solutions like refinancings are largely unavailable. The theme park operator, which had $2.4 billion in debt, faced nearly $300 million in payments to preferred stockholders due in August. But the company is hoping to make its ride through bankruptcy a short one. In a statement, Six Flags said that it is seeking court approval for a pre-negotiated restructuring plan, one that has the unanimous approval of its lenders. That proposal would eliminate $1.8 billion in debt and slice off the $300 million in preferred stock payments. “The current management team inherited a $2.4 billion debt load that cannot be sustained, particularly in these challenging financial markets,” Mark Shapiro, Six Flags’s chief executive, said in a statement. “As a result, we are cleaning up the past and positioning the Company for future growth.”In its bankruptcy filing, Six Flags said that 37 of its subsidiaries, including parks like Great Adventure and Hurricane Harbor, had also sought court protection. The parks will continue to operate normally, but analysts have questioned whether attendance would fall off as some consumers shun waiting in line for roller coasters at a bankrupt theme park operator. Six Flags said in its statement that the filing comes despite a good 2008, in which the company cut its net loss to $135 million from $275 million a year ago. Its net loss for the first three months of 2009 narrowed nearly 7 percent from the same time in 2008, to $146.3 million. But the company saw a 24 percent drop in revenue over the same period, as it suffered from lower attendance and spending at its parks.

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 CH 11 Bankruptcy Attorney Talks About GM Chapter 11 Bankruptcy

GM has shown indicated that it plans to exit out of Chapter 11 Bankruptcy before the end of July. For those keeping track, GM went into CH 11 bankruptcy in June. That means in less than 2 months, GM was able to restructure its debt and emerge a leaner company. There was no financial magic that allowed for such a quick recovery, just a simple divide of the GM pie. The US government now owns about 60% of the new GM, 11% owned by Canada, 17% owned by a union controlled health care trust, and 10% by GM bondholders. GM shareholders receive nothing.

GM's unsecured debt of $54 million is shrunk down to a fraction of that amount. Other unwanted contracts and liabilities (which were not sold to foreign investors) will be held by the old company under a new name, Motors Liquidation Co. The company will dispose of the assets over the next few years.

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 Talks About Eddie Bauer Bankruptcy

The latest big name company to file for Chapter 11 Bankruptcy is clothing stalwart Eddie Bauer. The clothing retailer filed on June 17 in Delaware. This CH 11 bankruptcy is another sign that no particular industry is safe in these economic times as electronics retailer Circuit City, financial giant Lehman Brothers, and top auto makers GM and Chrysler have gone into bankruptcy.

Eddie Bauer lost $44.5 million dollars in the first quarter of 2009 and its revenues declined $33.4 million dollars from the year before. This showed a negative trend for Eddie Bauer's income which basically left it now choice but to file for creditor protection. The Bankruptcy Court approved $90 million dollars in loans to ensure that Eddie Bauer stores can continue to operate and certain vendors to be paid while Eddie Bauer finishes the Chapter 11 Bankruptcy.

The current plan for Eddie Bauer is very different from the GM and Chrysler Bankruptcies. The Court will most likely auction off the company. At the time of bankruptcy, a private equity firm had bid $202 million dollars in cash for the company. As a reminder, GM and Chrysler have the government taking partial ownership the automakers. Eddie Bauer's stock closed at 18 cents a share the day of the 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, 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 another Chapter 11 Bankruptcy Success Story

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

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

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

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

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Sacramento Bankruptcy Attorney discusses the Phoenix Coyotes Chapter 11 Bankruptcy Filing

The Phoenix Coyotes recently filed for Chapter 11 Bankruptcy protection much to the chagrin of the NHL. The team has accumulated approximately $73 million in debt over the past 3 years. As part of the Coyotes’ chapter 11 reorganization plan, the Coyotes’ owner Jerry Moyes has proposed selling the team to James Balsillie, the Co-CEO of Research In Motion (RIM) Ltd. Balsillie has offered to pay $212.5 million for the team, which would pay 100% of the teams secured debt and $95.5 million to unsecured creditors. However, as a condition of the sale Balsillie wants to be able to relocate the team to Ontario, Canada.

This case is interesting because, as a member of the National Hockey League, the Coyotes would normally need the permission of the NHL and the other 29 team owners to sell and relocate the team. Moyes has attempted to circumvent this process by going directly to the Bankruptcy Court and proposing that the team be sold to Balsillie. The NHL is investigating the propriety of the Coyotes’ bankruptcy filing and vigorously contesting the sale of the Coyotes to Balsillie. Statements from the NHL have made it clear that the NHL intends to keep the team in Glendale, Arizona. The NHL intends to keep the sale of the Coyotes out the jurisdiction of the bankruptcy court and return the issues of relocation and sale to the League’s purview.

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.

Fremont Bankruptcy Attorney discusses the benefits of a Chapter 11 bankruptcy filing as demonstrated by Z Gallerie

Z Gallerie, the 30 year old home furnishings chain, filed for Chapter 11 bankruptcy in April of this year. The filing allowed the company to voluntarily reorganize its operations to increase its bottomline by closing under-producing stores and relieving itself from liability on those leases. Z Gallerie also closed a distribution center to cut away additional dead weight. The company has sought the court’s approval for use of “cash collateral” to continue paying its vendors and employees during its reorganization process.

The company has not announced any additional store closings since its initial purge in March, and should be able to continue operating its remaining stores, website sales, and honor existing company programs. Z Gallerie’s revamping of its organization by disposing of poor performing stores will likely enable it to triumphantly emerge from Chapter 11 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, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs.

San Jose Bankruptcy Attorney Talks about the Chrysler Bankruptcy

On April 30, 2009, Chrysler’s filed for a Chapter 11 Bankruptcy. The Chrysler Bankruptcy would be a huge undertaking because the company is one of the big three automakers in the United States. To see how this bankruptcy will work, it is helpful to look at a different large bankruptcy. In late 2008 and early 2009, the Circuit City Bankruptcy rocked the retail world because it signaled the shut down a major player in products that consumers purchase on a regular basis. Circuit City filed for Chapter 11 bankruptcy which is what Chrysler would do. Under the Chapter 11 bankruptcy, Circuit City was able to continue business including selling during the holiday season and pay their employees for the work. Circuit City was given protection against creditors while it looked for a new source of capital or a buyer. Neither could be found so Circuit City had to be shut down.

In Chrysler’s case, they have Chapter 11 creditor protection while it looked for solutions to its problems. Based on reports, Chrysler had to file for Bankruptcy so that it could close the investment from Fiat of Italy. Fiat had previously been identified as a potential buyer ranging from a 20 percent to 35 percent stake in the company. Chrysler owes $6.9 billion to lenders and once a few begin collections, could cause the whole company to shut down. (A car cannot be sold unless it has all the parts, like the wheels) The Chapter 11 protections are needed because Chrysler needs to continue operating while the deals are being worked out.

The straw that broke the camel’s back and forced Chrysler into bankruptcy is being blamed on a small minority of creditors. The lenders originally wanted 65 cents to the dollar with a 40 percent equity stake in whatever company Chrysler becomes. The government wanted the lenders to get 22 cents on the dollar with 5 percent of the new company. The key note was that government came to the table with money to help finance any deals but wanted to spend as little as possible while the lenders want as much as possible. The risk for the lenders was that the deal fell apart and Chrysler was liquidated similar to Circuit City where they could receive much less than 22 cents on the dollar and only after items have been auctioned off. (One can imagine that there are few buyers of car building plants in the US) The other risk was that under Chapter 11 laws, Fiat (or any other buyer) can choose which assets to keep and which to get rid. This pits the lenders against each other as the owners marquee property can command a premium while the undesired debts are left with hats in hand asking for bail outs.

In the end, most of the major lenders agreed to the government’s proposal prior to bankruptcy but a few minority lenders held out. The final group of lenders who withheld approval were called “speculators” by President Obama. Many of the lenders were hedge funds and boutique investment funds who alleged that the big banks were yielding to the government’s proposal because of prior bailout money. Now that bankruptcy is filed, the decision as to whether Chrysler’s plan is accepted or not will lie with the Bankruptcy Judge instead of the lender’s hands.

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.

San Francisco Bankruptcy Attorney Talks about Law Firm Bankruptcy

As a sign of the times, even major law firms are not immune from the dropping economy. Heller Ehrman filed for Chapter 11 Bankruptcy back in December of 2008. The interesting question is how does a law firm go into bankruptcy? For a sneak peek in the workings of a law firm, a lawyer for Heller Ehrman charges a client for each hour (or fraction thereof) that they spend working on the client’s case. The client is then billed for the work. Assuming that Heller Ehrman was collecting at a reasonable rate and managing the billable work of each attorney, it should never have gotten to a place where it owed money because its employees are retained only if they are producing positive results. (Unlike a car dealer who has to have employees even if no cars are sold).

In Heller Ehrman’s case, the problem was not the amount of work or the client’s not paying. Instead, Heller Ehrman was in a dispute with the landlord over the lease. The two parties reached a settlement agreement which needed a lump sum cash payment. The landlord recorded this agreement as an attachment to Heller Ehrman’s property which created a liability. This attachment affected Heller Ehrman’s balance sheet and caused the banks to deny Heller Ehrman credit when Heller Erhman tried to borrow the money to pay the sum. Without the money to pay the landlord, Heller Ehrman went into default and had to file bankruptcy to protect itself the landlord coming after it for more money.

The scenario above should sound extremely similar to real life people who are faced with bankruptcy now. Many people who have dutifully paid their credit card bills on time every month are suddenly receiving letters from the banks that their credit has been re-evaluated. Due to a higher credit risk (such as a new debt) the bank is cutting the credit limit or raising interest rates. The credit card user, who needed the credit to pay their money expenses, suddenly has no credit and no way to meet their bills. The users are then forced to default on payments to creditors such as the landlord, mortgage company, or utility company. The default creates more debt and restricts the user from getting more credit. The user is then forced to file for bankruptcy.

In Heller Ehrman’s case, it was possible that if the banks did not cut off Heller Ehrman’s credit, it would have paid the landlord and paid back all the money it owed. But the bank’s denial of credit forced the company into a bankruptcy that it did not want. For an individual creditor’s case, if the credit card had not denied credit then the debtor would have paid their bill and repaid the credit card holder plus all the interest. But the denial of credit forced the debtor into default which led to bankruptcy. The parallel shows that debtors, whether they are large law firms or individual debtors, often never want to be in bankruptcy. It is the arbitrary actions of creditors that force them into it.

If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. 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 13 bankruptcy, lien stripping, discharging debt, etc. we can help! We have bankruptcy attorneys in San Mateo, Fremont, Sacramento, Roseville, San Francisco, Salinas and San Jose.

San Jose Bankruptcy Attorney discusses a Chapter 11 Success Story

Filing for Chapter 11 bankruptcy protection is a scary scenario for debtors of all financial sizes. However, it is a worthwhile process to keep the company’s doors open and the business operation. An inspiring example of this is the rehabilitation of the Tropicana Resort & Casino on the Las Vegas Strip. In May of 2008, Tropicana Entertainment, the owner of the 51-year-old resort and casino filed for Chapter 11 bankruptcy protection. The Tropicana was able to keep its roulette wheels spinning during the restructuring process and has recently announced that it believes it will be able to emerge from bankruptcy as early as this spring.

The Tropicana appears to have been able to make the necessary changes to make it a viable entity again, less than one year after filing bankruptcy. The Chapter 11 restructuring plan is currently being reviewed by the casino’s unsecured debtors and they have until mid-April to approve the proposal. Assuming everything proceeds as planned, the Tropicana’s bankruptcy confirmation hearings are scheduled to begin on April 27, 2009.

If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. 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 13 bankruptcy, lien stripping, discharging debt, etc. we can help! We have bankrupcty attorneys in San Mateo, Fremont, Sacramento, Roseville, San Francisco, Salinas and San Jose.