California Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney discusses
Business After Chapter 11

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

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

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

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

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney addresses the issue of How do I file Bankruptcy?

We blog on the topic of how to file bankruptcy a lot because, frankly, it comes up daily for many consumers in debt. The ins and outs of how to file bankruptcy is a "stopping point" for many as it can be confusing and sometimes daunting. But it doesn't have to be. Knowing what to expect is half the battle.

A bankruptcy begins by filing the bankruptcy petition at the bankruptcy court. It takes time and attention to prepare your bankruptcy file, so it is highly recommended that you seek the assistance of an experienced bankruptcy attorney. For example, with the bankruptcy petition, you also file a creditor schedule (listing all of the creditors to which you owe debt), a statement listing your assets and a statement listing your liabilities. When filing bankruptcy there are many forms to fill out, a list of which is available on the court websites (click here to view) as well as some printing, copying or stationary stores. Your bankruptcy filing, whether it is a Chapter 7, Chapter 11 or Chapter 13 filing requires a variety of components including attention to detail, a 341 meeting od the creditors, in some cases a Means Test, and two financial courses.

Again, filing bankruptcy can be as easy or as difficult as you make it. If you hire a bankruptcy attorney, chances are your bankruptcy filing with go smoothly and is less likely to get dismissed.

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.

A San Jose bankruptcy lawyer addresses: Do I need a Chapter 11 attorney?

What is Chapter 11 bankruptcy?
Chapter 11 of the bankruptcy code provides for a business or individual with very high debts to reorganize their finances and develop a repayment plan to all creditors. While chapter 11 is generally associated with business’, given the high cost of homes in California, many individuals may turn to chapter 11 as their only option to save their home or reorganize rental properties.

Is chapter 11 complicated?
Yes. Unlike chapter 7 or chapter 13, chapter 11 bankruptcies require extensive court involvement in looking into the financial affairs of the individual or business. Monthly financial reports must be submitted to the court and often employment of professionals such as accountants and real estate brokers are required in order to assist the individual or business in its reorganization.

Can I file chapter 11 without an attorney?
There is no requirement that an individual file chapter 11 with an attorney, however, given the complexities of chapter 11 it is advisable that legal counsel be sought. A chapter 11 attorney can work with the individual or business and make determinations on how best to proceed with the bankruptcy.

How can a chapter 11 attorney help me?
A chapter 11 attorney will know what is required of a business or individual when the chapter 11 petition is filed. Beyond preparing the petition, there are usually motions and other procedural aspects involved with the proceeding. In addition, a chapter 11 reorganization plan needs to be developed outlining how the business or individual plans to exit bankruptcy. A chapter 11 attorney will know how to prepare those documents and deal with any possible objections from creditors.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy lawyer describes the monthly operating report in a Chapter 11 bankruptcy filing...

A monthly operating report is filed by the debtor (refered to as "debtor in possession") during a Chapter 11 bankruptcy filing. The monthly operating report is an account record of revenue and expenses that are logged per month, each month, during an open Chapter 11 filing by a business. If the Chapter 11 filer does not submit the monthly operating report they are subject to their business filing being dismissed by the bankruptcy court or having it converted to a Chapter 7 filing. This would be initiated by the U.S. Trustee.

The person that files the monthly operating report is typically a principal of the business that is filing and is in charge of faciliating the restructuring of the debt according to the guidelines of Chapter 11 under the US Bankruptcy Code.

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.

A San Jose bankrupty lawyer addresses a common bankruptcy question: How much does it cost to file Bankruptcy in Fremont?

Answer: It depends on what Chapter you file.

Chapter 7 requires a $299 filing fee, Chapter 13 requires a $274 filing fee, and Chapter 11 requires $1,039 filing fee. These fees, however, are only filing fees and do not include attorney’s fees which vary depending upon the complexity of each case.

Thus, to file bankruptcy in Fremont or San Jose will vary depending upon what chapter a debtor files and the complexity of the case. An experienced bankruptcy attorney should be consulted to get an actual cost to file 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.

A San Jose bankruptcy lawyer answers the question: What is a Monthly Operating Report?

Monthly Operating Report - As a component of filing a Chapter 11 bankruptcy debtors are required to file Monthly Operating Reports with the U.S. Trustee’s Office.

The US Trustee's office is often referred to as the watchdog agency for all bankruptcy filing processes. The purpose of the month operating report is for the trustee to be able to see, on a monthly basis, the debtor's ability to pay ongoing obligations in a timely fashion. The monthly operating report tracks taxes, insurance, disbursements, receipts as well as any changes to the debtor's asset and liability circumstances.

The monthly operating report is a system of checks and balances that is required for all Chapter 11 bankruptcy filings.

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.

A San Jose bankruptcy lawyer asks San Jose consumers in debt to consider the question: What Should I Do Before Bankruptcy?

The choice to file bankruptcy is never an easy one. So before bankruptcy, there are many things to consider. Being overwhelmed by a mountain of debt is one sign before bankruptcy comes to mind. Unforseen circumstances such as an accident (medical bills), sudden job loss (rendering you unable to meet billing and mortgage deadlines), student loan debt catching up with you, or a combination are all signs before bankruptcy is considered for most.

Before bankruptcy, everyone should consider meeting with a qualified and experienced bankruptcy attorney to review finances, explore options, and develop an action plan before bankruptcy. This type of planning before bankruptcy can provide a clear picture when things are clouded up my debt and stress. Credit counseling and becoming familiar with the necessary tools to ensure future financial stability are also key before bankruptcy so that after bankruptcy, when the debtor becomes debt-free, they have built a stable path for future financial freedom.

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.

A San Jose bankruptcy lawyer explains: What is secured debt?

Secured debt is an item or items belonging to you, often referred to as assets, that are used as collateral when you seek a loan. Secured debt reduces the risk for the lender when they loan you money, as the secured debt is a “back up plan” if you are unable to fulfill the terms of the loan. An example of secured debt would be mortgage on your house. This type of secured debt would be considered as collateral toward the debt to the lending institution. Again, the secured debt acts as something to be used (or seized) only in the event you default on your loan repayment. This secured debt is to be taken very seriously, as the bank can take it from you and sell it to pay off the debt or the portion of the debt.

Another way to described unsecured debt is security. Security for the lending company that efforts can be made to “made good” on your debt if unforeseen circumstances render you unable to fulfill the obligation of the loan.

Secured debt is the opposite of unsecured debt, which carries much more risk for the lender.

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.

A San Jose bankruptcy lawyer asks What is Chapter 11 Bankruptcy?

Chapter 11 Bankruptcy, by definition, is a bankruptcy filing process designed under the United States Bankruptcy Code for debtors that qualify for reorganizing their accumulated business affair debt, including managing their various assets. Chapter 11 bankruptcies are typically filed by corporations desiring time to restructure their debt. Chapter 11 bankruptcy is considered a more complicated filing, due to the reorganization component wherein the debtor, with the assistance a qualified and experienced Chapter 11 bankruptcy attorney, makes arrangements with their creditors to maintain repayments under a new payment plan that is usually over a longer period of time and structured to meet their current financial abilities.

The Chapter 11 Bankruptcy filer does this by preparing a disclosure statement describing their new proposal and outlining their prospective payment plan for their creditors to review. Their various creditors must vote on the plan, thus coming to a mutually agreed upon payment schedule that allows the Chapter 11 filer the opportunity to revive themselves financially and, in most cases, continue running their business (as opposed to liquidation).

All Chapter 11 bankruptcy filing reorganization plans require final approval from the Bankruptcy Court.

Once their obligations are met under the Chapter 11 bankruptcy guidelines and requirements, Chapter 11 filers obtain the “Fresh Start” as in other bankruptcy filings, such as Chapter 7 bankruptcy.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy lawyer answers whether you need chapter 11 Attorney?

Answer: Yes. Chapter 11 is the most complicated bankruptcy chapter. Any attempt by a debtor to file their own Chapter 11 without the aid of a Chapter 11 attorney would be foolish.

The Chapter 11 process requires extensive paperwork and must be approved by creditors through a voting process. Thus many attorneys who practice consumer bankruptcy do not handle Chapter 11 cases because they are simply too complicated and time consuming. Consequently, a chapter 11 attorney is necessary.

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.

A San Jose bankruptcy lawyer defines Municipality Reorganization

Municipality reorganization in bankruptcy law is slightly different than both individuals filing for bankruptcy or business entities filing for bankruptcy. Chapter 9 of the Bankruptcy Code is applicable only to municipalities, therefore chapter 9 governs the municipality reorganization. The code defines a municipality as a “political subdivision or public agency or instrumentality of a state.” 11 USC 104(b). The definition is broad enough to allow cities, townships, and public improvement districts to file chapter 9 bankruptcy. Municipality reorganization is different in the sense that the 10th Amendment of the Constitution protects municipalities from certain Bankruptcy Code provisions. The 10th Amendment provides for state autonomy, thereby affording a municipality reorganization plan much more independence than other reorganization plans found in the Bankruptcy Code. An example of such independence with municipality reorganization is the lack of any provision calling for a liquidation of municipality assets.

Other differences between Chapter 9 and other Bankruptcy chapters deal with the voluntary aspect of filing. With a municipality reorganization there can be no involuntary bankruptcy. In addition, there is no meeting of the creditors with a municipality reorganization and creditors cannot propose competing plans with the municipality. The filing of a chapter 9 bankruptcy, however, does create the automatic stay, similar to other bankruptcy chapters.

An important tool available to the municipality in a municipality reorganization is the ability to use its broad powers to raise taxes, use its property, and make necessary expenditures. Another aspect of municipality reorganization is the ability of the municipality to reject collective bargaining agreements and retiree benefit plans without having to follow the usual procedures required in Chapter 11. Further, during municipality reorganization the municipality has authority to borrow money and obtain credit. The court does not have any power to supervise the amount of debt the municipality may incur.

The bankruptcy court, however, does have the power to dismiss a municipality reorganization plan if it finds that the petition was not filed in good faith or if the petition fails to meet the requirements of chapter 9. A municipality reorganization is discharged after a) confirmation of the plan; b) deposit by the municipality of consideration to be distributed; and c) a finding by the court that the security deposited by the municipality is valid. The most recent well known municipality bankruptcy was Vallejo, California, which took place in 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 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.

A San Jose attorney explains involuntary bankruptcy

An Involuntary Bankruptcy, by definition, occurs when the filing of the bankruptcy is initiated by the creditor to whom the debt(s) is owed. The creditors are allowed to file a petition for bankruptcy, thus initiating the involuntary bankruptcy process, with the end goal of recouping the debt or a portion of the debt that is owed them. An involuntary bankruptcy can also result in a restructure of that debt, which means the debt is restructured and paid off, sometimes via a payment plan.

The involuntary bankruptcy differs from a regular bankruptcy filing in that typically bankruptcy is filed by the debtor.

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.

A San Jose Bankruptcy Lawyer Discusses Discharging Back Taxes...

In our current economic climate, many people are having difficulty keeping up with all of their debts. While many of us think of bankruptcy as being for debts such as credit cards and auto loans, a significant number of people are also having trouble with back taxes. Forunately for these people, taxes are often dischargable in a bankruptcy.

Whether or not your taxes can be discharged depends on various factors. When the taxes were due to be filed and when they were actually filed are two of the major factors involved in determining whether or not the taxes can be discharged, though the courts will also look at other aspects of your situation, such as whether or not you intentionally evaded the IRS.
In order to determine whether or not your taxes can be discharged in a bankruptcy, we suggest contacting a lawyer in your area.

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.

A San Jose bankruptcy attorney notes the release of The California Franchise Tax Board Top 250 Delinquent Taxpayers

Yellowstone Club founder Tim Blixseth ended up on The California Franchise Tax Board list of delinquent taxpayers, released last Monday. Those who make the cut owe several hundreds of thousands of dollars in personal state income tax. The list comprises the top 250 delinquent taxpayers.

It is said that Blixseth, founder of the luxury golf and ski resort in Montana, owes approximately $894k, and emerged from Chapter 11 bankruptcy last year. It is quoted that his attorney, Michael Flynn, names Edra Blixseth as the ower of the debt in conjunction with the Blixseth 2008 divorce settlement. She also filed Chapter 11 bankruptcy last year and is said to be in asset liquidation to pay-off her creditors.

Meanwhile, Tim Blixseth keeps company with former Baywatch (and forever babe to watch) star, Pamela Anderson, but only on this list of California delinquent taxpayers.

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.

A San Jose bankruptcy attorney explains the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 was enacted in April 2005 and applies to cases filed on or after October 17, 2005. It involved significant changes to the United States Bankruptcy Code with the goal to prevent abuse of the system and make it more difficult to file for bankruptcy, especially under Chapter 7. Among other requirements, under the law, consumers who plan to file for bankruptcy protection must obtain credit counseling from an approved organization within 180 days before filing. During the course of the bankruptcy process, they must complete a debtor education course in order to obtain a discharge.

Perhaps the most significant change enacted by BAPCPA was the restriction on the number of debtors that could file for Chapter 7 bankruptcy which subjects some debtors to a means test. Upon calculation of the debtor’s income and comparison to the median income of the state in which the debtor resides, debtors whose income is above the median income must pass a means test. Another important change enacted by BAPCPA was the allowance for dismissal or conversion of a Chapter 7 case upon a finding of abuse by an individual debtor with primarily consumer debt. Abuse may be found where there is an unrebutted presumption of abuse arising under the means test or through a finding of bad faith, based upon a determination of the totality of the circumstances.

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.

A San Jose bankruptcy attorney discusses Revocation of a Bankruptcy Discharge

In certain situations, the United States bankruptcy court can revoke a discharge received by the debtor. Often times such revocations involve allegations that the debtor obtained the discharge fraudulently. A request for revocation may be made by the trustee, a creditor or the United States trustee. Another reason for revocation is when a debtor failed to disclose property that he or she had acquired and which should have been considered in the bankruptcy process. If there is an audit of the case, a revocation may also be requested based upon the debtor’s failure to explain any discovered misstatements or to provide requested documentation and/or information.

Other reasons for revocation include the debtor’s failure to obey a lawful order of the court or to respond to a material question approved by the court or to testify other than on the properly invoked privilege against self-incrimination. For the most part, a request for revocation must be made within a year following the discharge or in some situations, before the case is closed. Ultimately it is up to the court to decide whether the allegations are true and whether to grant the request for revocation.

In a Chapter 11 or Chapter 13 case, allegations of fraud are also common in requesting revocation of the order of confirmation or discharge.

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.

A San Jose Bankruptcy Attorney Discusses Dan Issel’s Bankruptcy Filing

Although not every American may recognize the name, Dan Issel is a former basketball star and the coach for the Denver Nuggets. He surprised many when he filed for personal bankruptcy earlier in 2009 claiming $4.5 million in debt. His home located in an exclusive community was headed to foreclosure while his company which trains and races horses had amassed a tremendous amount of debt. A Denver auction house auctioned off more than 100 personal items belonging to Dan Issel and his wife, Cheri. The couple who owned assets valued at more than $2.1 million was forced to auction jewelry and memorabilia, for a total sale of $46,000.00.

The coach filed for Chapter 7 bankruptcy in June 2009, the paperwork for which states more than $77,000.00 in unsecured debt owed to credit card companies, more than $258,000.00 in business loans and still more related to expenses for his horse business. Sources who know Issel blame bad business investments for his current financial situation. Through 2003-04, Issel reportedly earned $2.5 million per season as vice president, general manager and head coach of the Nuggets. Nevertheless, Issel has joined the ranks in the current economy where bankruptcy filings are widespread. In the first six months of 2009, bankruptcy filings have increased by 36% as compared to the same six month period in 2008 according to the Administrative Office of the U.S. Courts.

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.

A San Jose bankruptcy attorney outlines court fees invloved with filing bankruptcy

In order to file for bankruptcy there are numerous fees that may be involved that the debtor should be aware of. The debtor will need to be responsible for paying for the credit counseling courses which normally cost approximately $50.00 per course, two of which must be taken in the course of a Chapter 7 and Chapter 13 bankruptcy. The filing fees for the petition in a Chapter 7 and Chapter 13 bankruptcy are $299.00 and $274.00, respectively. For a Chapter 11, the fee is much higher at $1,039.00.

In addition to the filing and other fees described above, other fees may arise within the course of a bankruptcy that the debtor should be aware of. For example, the cost for initiating an adversary proceeding is generally $250.00, although it is not required if the plaintiff is the debtor or a child support creditor who has filed the proper paperwork in the bankruptcy case prior to or at the same time he files the adversary complaint. Any amendment to schedules or list of creditors, such as to add or delete a creditor or to change the amount of a debt costs $26.00. For an appeal, the notice is $5.00 and the filing of the appeal $250.00.

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.

A San Jose bankruptcy attorney has an example of one bankrutptcy inquiry with regard to credit card debt...

Many Bay Area consumers in debt worry about being able to keep credit cards that are paid off while filing bankruptcy on those that are not. For example, one such bankruptcy candidate in our San Jose bankruptcy law firm asked just yesterday:

"I want to file for bankruptcy, but want to be able to keep a couple of my credit cards. If I have 2 credit cards with the same company and one is paid off and the other is going to be part of my bankruptcy, will they cancel the paid off card?"

Unfortunately there is no concrete answer for this bankruptcy scenerio. While they may have no reason to cancel the one that is paid off, they can still cancel it. Some credit card companies even run quarterly credit checks and if they see a certain amount of debt, or find out about the bankruptcy, they will close the account. In short, it's completely up to the credit card company.

This is why speaking to a qualified, educated bankruptcy attorney is crucial to informing yourself on all of the options involved in filing bankruptcy. Consulting with an attorney means your specific circumstances, which may or may not "fit the mold" of other bankruptcy candidates can be addressed and all of your questions answered.

If you do have questions 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.

A San Jose bankruptcy attorney comments on the effects of bankrupty on child support income...

Many bankruptcy candidates that are single moms have questions similar to this:

"I recently lost my job several months ago and am contemplating filing for bankruptcy. I am a single mother of 2 children and my only sources of income right now are unemployment and child support I receive from my ex-husband. Will filing for bankruptcy affect my child support?"

You do not need to worry about a bankruptcy affecting your child support. The amount that you are paid for child support does not change or stops just because you file for bankruptcy. The father of your children is obligated to pay that amount pursuant to a different court order and that order is not affected by a bankruptcy. The only way the amount of support owed could change is if father went to the family law court and requested a change in the amount owed. He would not be able to do this in the bankruptcy court.

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.