California Bankruptcy Lawyer Blog

A drop in the number of million-dollar plus homes sold in California has marked its fourth consecutive year (2009) on the downslide. Hillsborough ranked the highest with the most expensive home selling at $8 mil, with Menlo Park a close second. To follow were Cupertino, Los Altos and Saratoga, while Palo Alto, Fremont and Los Gatos were the next grouping on the list with Los Gatos’ top seller peaking at $4.25 million. California communities where almost all sales of homes were in the million-dollar category were Portola Valley and Atherton in San Mateo County, Newport Beach in Orange County, Ross in Marin County and Rancho Santa Fe in San Diego County.

MDA DataQuick, a real estate service out of San Diego recently reported that 18,621 California homes sold for a million dollars or more last year, down 23.8 percent from 24,436 in 2008. In 2007 the total was 42,506, in 2006 it was 50,010 and in 2005 it peaked at 54,773. Last year was the lowest sales count since 2002, when 15,703 were sold.

1,457 newly built homes accounted for 2009's $1 million-plus sales, down 50.3 percent from 2,933 for 2008. There were 1,542 condo sales in the million-dollar category, down 34.7 percent from 2,362 the year before. Condos sold at the million-or-more level were in San Diego, Los Angeles and San Francisco.

While these statistics are mildly interesting, most consumers in the greater Bay Area do not fall in the category of the million dollar listing. If you are facing foreclosure, need assistance with asset management or protection or are considering filing bankruptcy, a Bay Area Bankruptcy Attorney may be in order. No matter what monetary bracket you fall into, consumers in debt are rampant in our current economic crisis, as commercial filings skyrocket, the dow dips, retail businesses file left and right, loans get modified and unemployment continues to plummet. However, the upside to those in financially dire straits are the bankruptcy options available to you, including the Fresh Start of a Chapter 7 bankruptcy.

Commercial bankruptcies have nearly doubled over the past year. California continues to be the most severely impacted by the financial crisis. Among the 15 areas across the United States with the highest bankruptcy filings, eight of them are in California. Sacramento metropolitan areas, San Bernardino and Los Angeles lead the nation in small-business bankruptcy filings. These areas are closely followed by San Diego-Carlsbad, Oakland, and San Jose for having the most bankruptcy filings.

California is hoping to rally back from the economic downturn during 2010, but given the most recent statistics, it appears that things may get worse before they get better. The bankruptcy code is available to help debtors through the financial crisis and provide a Fresh Start.

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.

There is a cultural stigma associated with bankruptcy that consumers who file for Bankruptcy protection are shopaholics who are just trying to take advantage of the system. For the average filer, this stereotype could not be further from the truth. Currently, the typical bankruptcy debtor is well educated and work in a cross section of all occupations. Their bankruptcy is often driven by a recent divorce, medial injury or illness, or unexpected job loss. The whole purpose of the bankruptcy laws is to give consumers who have experienced these types of unexpected financial crisis a fresh start. There is no reason for qualified debtors to shy away from maximizing their entitlement to start over again and rebuild their credit and lives.

Bankruptcy filings have dramatically increased in San Jose over the past year. Statistics show that women filing for bankruptcy has increased almost 800%. It is believed that changing societal norms such as the increase in single-parent households, higher divorce rates, rising medical costs and lack of medical insurance, are contributing to the increase in bankruptcy filings as a whole.

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.

Due to the less than stellar holiday shopping season, there is a general expectation that an increased number of commercial retailers are contemplating filing for Chapter 11 bankruptcy protection. Given the rising unemployment levels, underwater mortgages and low consumer confidence this view is supported by bankruptcy attorneys and economists alike. Retailers are struggling with making payments to landlords and suppliers, who are also likely having financial difficulties under the current economic climate. Retail sales are expected to be down 12 percent to 15 percent compared to 2008. This dramatic decrease comes after sales dropped approximately 8 percent in 2008, resulting in a nearly 20 percent drop in the past 2 years.

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

This week's Bankruptcy bill designed to adjust to rise in complexity of bankruptcy cases.

Bankruptcy Law360 reported this week that the U.S. House of Representatives is reviewing a bill for the addition of 25 permanent bankruptcy judges to the bankruptcy bench. A rapid rise in the complexity of bankruptcy cases in the bankruptcy courts is sited to be the primary reason. Representative Steve Cohen, a Democrat from Tennessee, presented the bill on Tuesday of this week proposing 13 new bankruptcy court judges, and the transition of 22 temporary bankruptcy court judges into permanent roles. The authorization of two temporary judges’ extension to 5 years would be also be part of this legislative move.

Although a harsh reality, the drastic rise in bankruptcies should come as no surprise to California consumers in debt, as all walks of life are feeling the effects of the recession and many wish to rebuild their credit and move on to a Fresh Start. Unemployment being at an all time high, fear of foreclosures and mounting debt is causing many to evaluate their finances and bankruptcy options, hence the rise in Bay Area bankruptcy filings in San Jose, San Francisco and the surrounding areas.

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.

NBC News reports that Obama’s Mortgage relief plan can lead to foreclosure. Just ask Deb Franklin. As NBC News reports, for nine months Deb Franklin did exactly what JP Morgan Chase and President Obama told her to do.

Deb Franklin made her mortgage payments, on time, after they were reduced from $1,433 to $1,233 through Obama's Making Home Affordable program. After three payments, however, the mortgage relief was supposed to become permanent, but red tape and paperwork landed her in limbo. It is unclear as to whether or not she sought filing Chapter 13 bankruptcy at this time.

Then the day after Christmas Deb Franklin received notice from JP Morgan Chase that they had begun the foreclosure process. In the aftermath Franklin has been told by bank representatives that the foreclosure notice was sent in error, but she doesn't buy it. Franklin told NBC on a single day in early January, she says, one Chase representative told her that the loan modification plan had been denied, another said it was approved, and a third told her the foreclosure had been "suspended."

In retrospect the Franklin’s 10-month odyssey through the Making Home Affordable program raised their mortgage balance from $187,000 to $207,000, ruined their credit score, leading to cancellation of their credit cards, and now -- despite making all their payments -- put them on the brink of losing their home. For San Jose, San Francisco and Northern California debtors on the brink of losing their home, filing Chapter 13 bankruptcy will stop the foreclosure process and may be an alternative to a loan modification.

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 residents and consumers in debt, as well as those San Jose residents considering bankruptcy, who believe California’s budget crisis is an anomaly should look to Illinois. NBC news reports that Illinoios' finances are in dire straits, and the state is on the brink of bankruptcy!

Laurence Msall, president of the Civic Federation, a fiscal watchdog in Chicago told Crain’s Chicago Business that all stakeholders of Illinois should “recognize how close the state is to bankruptcy or insolvency.”

Bankruptcy is defined as an inability to pay debts out of current assets, and it’s no secret that Illinois can’t pay its bills. Specifically, Illinois’ unpaid bills total around $5 billion. Unfortunately, Illinois can’t do much about its debt.

Federal bankruptcy protection doesn’t apply to states, so there’s no way for Illinois to hide from its creditors. In light of this, one may expect Illinois politicians to make tough decisions to close the budget gap. As of today, however, no plan exists.

Today, Illinois is not taking in cash, its liquid assets have dipped below $1 million at times, and the state is supposed to pay $5.4 billion into its pension fund next year and $10 billion the year after that. David Merriman, head of economics department at the University of Illinois at Chicago, however, has stated that the real crisis will come when state institutions shut down because they can’t pay their employees.

Consequently NBC news reports that many foresee a governmental collapse in which vendors will stop bidding on contracts, investors will stop buying bonds, and employees will be paid with IOUs, similar to what our own great state of California has done.

Thankfully, bankruptcy does apply to citizens and can be a valuable tool to allow San Jose residents to start fresh!

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

Bankruptcy can be good for your wallet??? If you’ve chosen to file bankruptcy, especially through a San Diego bankruptcy lawyer, you’ve considered the pros and cons and decided it was in your best interests. With that as a backdrop, then, the question becomes “how bad is bad?” In other words, what can you do to most expeditiously rebuild your credit? Well, in brief, you should be able to effectively rebuild your credit in two to three years. Here’s how:

Firstly, after the bankruptcy, get a credit card. Your first reaction may be “wait…that’s what got me into this mess.” Well, we are talking about rebuilding credit, so the process has to, not surprisingly, involve credit. Plus, what is available to you after bankruptcy in terms of credit cards is not going to be anything like what you had before. Typically, you can expect to have the card be secured. You are probably going to have to deposit a certain amount (generally between $200 and $500) in a bank and use that cash as collateral on the card. Your limit is however much you put in the bank. So, even though it is secured, it’s still credit.

Don’t be surprised if, in applying for credit, you get offers for unsecured cards. While you certainly should be careful using unsecured credit cards after a bankruptcy (because you are precluded by law from filing again for a number of years), you will definitely build your credit using these cards, just use them wisely.

Do your absolute best to pay off your post-bankruptcy credit cards, too. Many people believe that leaving a balance on a card is the best way to grow credit: that the banks like knowing who they can make money off of. This San Diego bankruptcy attorney does not agree. The credit formulas for FICO calculations just do not seem to be linked to balance-carrying. Your best approach is normal, periodic usage of the cards. That builds credit.

Next, you need more credit (to build credit). So, if you kept a car or mortgage during bankruptcy, keep paying it off. This is obvious, I know. But installment debt is a strong aid toward credit growth. Student loans count, too. While you will likely have a hard time getting a good interest rate on a new car purchase, you might get a better rate with a co-signer. As long as your Social Security number is the primary payee on the installment account, you’ll get the credit benefit.

Remember that credit is how you get credit. Be responsible and cautious and you may even qualify for an FHA loan on a mortgage within as little as eighteen months after filing for Chapter 7 relief. Generally, when considering a Chapter 7 or Chapter 13 bankruptcy, just remember that while your credit report will assuredly reflect the bankruptcy filing for 7 to 10 years, you will likely significantly improve your credit in as little as two to three years.

West Coast consumers in debt can take comfort that success is not a shield from bankruptcy, not even for the rich and famous. While the famous bankruptcies list grows every week, it's the Hollywood elite, the untouchables, that catch our eye and let us know that we are not alone in filing bankruptcy.

This week let’s talk Hollywood. Specifically, let’s discuss Mr. Francis Ford Coppola. Born in 1950 Coppola grew up in Great Neck, New York. Mr. Coppola attended the University of Southern California for his graduate film work. Mr. Coppola is perhaps most famous for directing a small film you may have heard of...The Godfather.

While most lay film goers probably know The Godfather was a tremendous success, what many may not know is that Coppola’s next films spelled disaster. First, Apocalypse Now, while critically acclaimed (naysayers will attest to the film's messiness) soared $15 million over budget. Next, Coppola borrowed $8.5 million from Canadian real estate mogul Jack Singer to finance One from the Heart. The film cost $30 million and grossed $636,000.00....oops. Consequently, when Singer sued to collect on his debt, Coppola filed for 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.

Are you a middle class college educated mother living in California? Did you know that statistically you are more susceptible to Bankruptcy? Read on to learn more!

According to Harvard Law Professor, Elizabeth Warren, educated Middle Class mothers are most likely to file for bankruptcy. This fact remains true despite most women who file have attended college. In fact, Professor Warren notes that having a college degree doesn’t seem to protect women from filing bankruptcy as much as it does for men! Professor Warren attributes this anomaly to the fact that women more often find themselves placed in the single parent role.

Perhaps the most alarming statistic from Professor Warren’s piece is that more women will file for Bankruptcy in 2010 than those who will graduate from college, receive a diagnosis of cancer, or file for divorce! To temper this trend Professor Warren advocates that women spend less and have a financial backup plan when having children. Only time will tell if this advice goes unheard.

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.

Celebrities that file Bankruptcy

Although filing bankruptcy is nothing to be ashamed of, producing a laundry list of your friends, family, neighbors -- even your doctor and local grocer that have filed bankruptcy in order to let you know that you are not alone, may not be celebrated in the manner it was intended. Celebrated? Now that is interesting. Perhaps we can take a look at those already in the spotlight.

Let’s dig right in, because the celebrities that have filed bankruptcy include Oscar winners (Dorothy Dandridge), corporate moguls (Donald Trump), authors (Samuel L. Clemens, a.k.a. Mark Twain), chart-topping singers (Toni Braxton, Jerry Lee Lewis, and Cindy Lauper), media mongers (Larry King), sports figures (Evander Holyfield, Mike Tyson, Michael Vick) and Grammy winners (MC Hammer) and most will surprise, even shock you (Francis Ford Coppola, Henry Ford, Walt Disney). All around us consumers in debt, including celebrities, file bankruptcy as a means to resolve their debt and move on with their lives.

If those that we idolize and admire like screen siren Kim Basinger (filed), the lovely but wayward Anna Nicole Smith (filed), silver screen favorites Doris Day (filed) & Mickey Rooney (filed twice), and film legend John Wayne (filed), indeed make the choice to file bankruptcy, why the shame attached to it? Consider this: If more consumers in debt would simply take the shame out of the equation, imagine the lives that would change this very minute in addition to those that have already made the choice to file bankruptcy and get out of debt.

Some may think the growing list of celebrities that file bankruptcy is just a mere reflection of more people that get caught up with buying then bogged down by debt. But even Abraham Lincoln, Henry S. Truman and the FBI’s own, Eliot Ness, filed bankruptcy. And while the rest of us are not Tom Petty, Mick Fleetwood, Marvin Gaye, or Andy Gibb (all of whom filed bankruptcy), life happens and we all seek the same resources when we find ourselves in over our heads.

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 and the South Bay, understand that just because you file your petition in a Chapter 13 bankruptcy doesn’t mean that your bankruptcy cannot be undone. You have the absolute right to dismiss your Chapter 13 bankruptcy case at any time, as long as: 1) you didn’t file your bankruptcy in bad faith, and 2) you didn’t start another bankruptcy and then convert to a Chapter 13.

To dismiss your case a debtor need only file an ex parte motion with the court. No hearing is required for the motion, and it will be automatically granted. Still, if you have no idea what an ex parte motion is, or how to prepare one, I recommend seeking the help of an experienced bankruptcy attorney.

If you have converted to a Chapter 13 from a different type of bankruptcy, you have to file a noticed motion asking the court for permission to dismiss your case. Here, the court may deny your request—and order you to convert to a Chapter 7 if the court believes you are abusing the system. Again, an experienced bankruptcy attorney can help a debtor navigate these sometimes treacherous seas.

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

San Jose Bankruptcy Attorney  explains how a change in job status can affect a bankruptcy repayment agreement.

Many people who file for Chapter 13 bankruptcy protection come out of the agreement with a repayment plan that must be completed in order to receive the bankruptcy discharge of their debts.  But what do they do if they lose their job during the repayment plan?  That is what happened in this story.  A couple filed for Chapter 13 protection and the husband lost his job shortly after the repayment agreement was put into place.

The tale of Douglas and Sandra Richards is instructive to show how life events can interrupt the best laid plans. It also shows that the bankruptcy courts are responsive to those events.  In the Richards’ case, the court has granted them a 21 day stay so that they can renegotiate their repayment plan with their creditors.  Mr. Richards’ job loss is tied to his pleading guilty to accepting a bribe from a contractor related to his employment as a county human resources director.

Richards’ bankruptcy attorney is renegotiating the couple’s repayment plan with their creditors during the 21 day stay.  The couple previously agreed to a $250 per month repayment for 44 months.  They were less than 1 year into the plan when Mr. Richards pled guilty to the federal bribery charge.  If you have agreed to a Chapter 13 repayment plan and have had a significant job situation change, consult your bankruptcy attorney and see if renegotiating your repayment plan is an option.  In this weakened economy, job losses and job reductions are a daily occurrence.  It is far better to reopen your repayment plan with the creditors and court than to default on your plan and be denied the bankruptcy discharge of your debts.

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  explains why filing for Chapter 13 bankruptcy protection should not affect your tax return.

Questions regarding bankruptcy and taxes are quite common.  Filing for Chapter 13 bankruptcy should have a minimal effect on your personal tax situation. Unless your tax advisor, San Jose bankruptcy attorney or the bankruptcy trustee instruct you otherwise, you should continue to file the same returns as you have in previous years. It is a requirement of the bankruptcy law that you keep current with the tax filings while your bankruptcy petition is before the court (see 11 U.S.C. § 521).

Unlike debt settlement processes, debt discharged in a bankruptcy is not subject to income tax.  If you have debt forgiven in a settlement process, you may receive a 1099 form that lists the forgiven debt as a form of income that you must declare on your income tax return.  Debts discharged in bankruptcy are not listed as income, and do not have to be declared as income for tax purposes

Some people get confused during the Chapter 13 process because they are no longer making payments directly to their mortgage company and mistakenly think that the payments are no longer deductible.  The payment is still the same, regardless of whether you send it directly to the mortgage company or to the bankruptcy trustee, who is making payments on your behalf to satisfy your bankruptcy obligations.  You can still deduct the payments if they meet the allowable tax deduction criteria. Examples of allowable deductions would include the home mortgage interest deduction, payments for state and local taxes, real estate taxes, medical expenses (deductible in the year paid and not the year the expenses were incurred) and student loan interest. To decide what is best for you, please consult an attorney or tax advisor.

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 explains the Chapter 13 bankruptcy process.

There are two principal types of bankruptcy filings for individuals, Chapter 7, which is a liquidation process, and Chapter 13, a reorganization process. This article will explain the Chapter 13 process.

Chapter 13 bankruptcy is a reorganization plan that allows a debtor to repay his or her debts back over a period of time, typically three to five years. This type of bankruptcy filing is most commonly used by a debtor who does not have the current income to repay all of his or her debts in full. The debtor must present a plan to the court that shows that he or she has the income to repay the debts with the extended time period. Under a Chapter 13 bankruptcy filing, the following debts must be paid in full:

• Wages you owe employers
• Any taxes that you owe
• Any domestic support obligations
• Mortgage payments
• Car payments
  

As with a Chapter 7 bankruptcy filing, the debtor must take a credit counseling course and present proof of completion of that course must be presented to the court. The filing of the petition under Chapter 13 "automatically stays" most collection actions against the debtor, or the debtor's property, while a repayment plan is worked out under the supervision of the courts. As long as the "stay" is in effect, creditors generally cannot initiate or continue any lawsuits, make wage garnishments, or even make telephone calls demanding payments.

For example, by virtue of the automatic stay, an individual debtor faced with a threatened foreclosure of the mort1gage on his or her principal residence can prevent an immediate foreclosure by filing a Chapter 13 petition with the bankruptcy court. Chapter 13 then gives the debtor a right to cure defaults on long-term home mortgage debts by bringing the payments current over a reasonable period of time.

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 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.

Sacramento Bankruptcy Attorney Discusses the Current Foreclosure and Bankruptcy Crisis, along with FEMA

If there was ever a silver lining in the current foreclosure and bankruptcy crisis, then it would be the ingenuity of the solutions that get sparked. The latest one comes from Florida. There is a proposal on the table to allow FEMA to use foreclosed properties to house people displaced by hurricanes. Basically, instead of building new homes or while the homes are being built, the displaced can use homes in Florida that have been abandoned and owned by the banks. The idea seems win-win. Banks have no ability to sell these properties anyway in this market and the displaced need a place to live. FEMA would be able to use the resources already available to carry out its mandate. Communities like the idea because it will mean no more empty houses which invites vandalism and decreases property values.

Of course, as with an good idea, there are nay-sayers. The first problems are the logistics such as who would be picked, how they would get to the new housing, and how it would matched (for example the right house for the right sized family). The next problem is a long term situation. What happens when the market turns or if the bank needs to actually sell the property? Can they evict the tenants and what rights would they have? Finally, there is a moral challenge, should Florida be using the displaced victims as a means to jump start their faltering real estate situation? Whatever the answer may be, the most valuable lesson is that even in calamity, there is opportunity.

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 Francisco Bankruptcy Attorney discusses Bankruptcy as a Step to Solvency

Many consumers are terrified at the prospect of filing for Bankruptcy. There is a widespread stigma of failure and embarrassment associated with bankruptcy. However, given the current state of the economy and the collapse of the housing market, filing bankruptcy has become millions of people’s only choice to obtain a fresh start. People have to file for bankruptcy due to circumstances beyond their control and lenders have to accept this reality if they intend to have a future in the lending business.

Another consumer concern is that filing for bankruptcy will cause irreparable harm to their credit. On the contrary, filing for bankruptcy will stop the bleeding and allow the consumer to begin rebuilding healthy credit. Furthermore, if a consumer is considering bankruptcy, it is likely that their credit score has already taken a major hit. While the fact that a consumer filed for bankruptcy will remain on their credit report for 10 years, people who file for bankruptcy generally see quality paper for car loans within 1-2 years and decent interest rates for mortgages within 2-3 years.

Finally, the biggest benefit of filing for bankruptcy is escaping the stress of constant creditor hounding and worrying about how to make ends meet. Restoring sanity and peace of mind makes consumers more productive in every aspect of their lives, especially personally and professionally.

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.