California Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney notes foreclosure in California...

California has posted the nation’s second highest foreclosure rate. Foreclosures in California are up 50% from the same time last year. California’s default notices and schedules foreclosure auctions are up 120% and 73% respectively. A recent survey shows that 7 out the top 10 metropolitan area foreclosure rates were in California. As San Jose Bankruptcy Attorneys who deal with clients facing foreclosure everyday and the devastating effects it can have with regard to adding additional stress to the bankruptcy process, we are glad to see that San Jose was thankfully not among the top ten, but its foreclosure rates are still dramatically up from last year. The hardest hit metro cities in Northern California are Vallejo-Fairfield, Modesto, Merced, Stockton, and Sacramento.

A chapter 13 bankruptcy can help consumers stop a foreclosure on their home. The 5 year (60 month) restructuring plan allows debtors to repay any arrears on their home over 60 months, so long as the homeowner is able to make their current mortgage payment in addition to the monthly arrears repayment. The benefit of this type of repayment plan is that the arrears cease accruing interest and the stress of a pending foreclosure is lifted.

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 discusses an example of debt relief for students

Most San Jose bankruptcy attorneys will tell you its nearly impossible to have student loan debt forgiven. However, in the case of Silver State Helicopters (SSH), which filed for bankruptcy, leaving 2,300 students in the lurch with $174 million in debt, the Nevada Attorney General’s Office stepped in to obtain student loan relief. Silver State Helicopters operated 34 flight schools nationwide; however, when the financial crisis caused it to close its doors, most of its students were left with substantial debts for training and certification that were never received.

The preferred lender for students who attended SSH was Student Loan Express. Student Loan Express had lent over $174 million to SSH students and pursuant to the agreement reached with the Nevada Attorney General’s Office, agreed to forgive almost $113 million of debt. Student Loan Express has agreed to forgive 75% of the debt acquired by students who never earned a certificate. Other students who received one or more certificates will also receive some relief.

Another benefit of the settlement with Student Loan Express is the provision that Student Loan Express will be prohibited from reporting negative credit information on students who stopped making payments prior to the settlement. Twelve states are participating in the agreement, including California. The agreement is going to be presented to the Court through a class action lawsuit. If the agreement is approved by the Court, it will provide much needed relief to SSH students.

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 discusses your credit score after bankruptcy

As a San Jose Bankruptcy Attorney, I know that many Bay Area debtors are worried about filing for Chapter 7 or Chapter 13 bankruptcy because they are concerned about the damage they will do to their FICO credit score. While it is true that a bankruptcy filing stays on a consumer's credit report for 10 years, it can be the best way to repair their credit over the long run.

Generally speaking, consumers considering bankruptcy have already done a significant amount of damage to their credit report, so the bankruptcy filing will at least stop the bleeding. Furthermore, after filing, consumers can begin to rebuild and repair their credit almost immediately. What a lot of people don’t know, is that 35% of a consumer’s credit report is based upon payment history. The further a debtor can get away from previously missed payments the more their score improves.

Two ways to begin rebuilding credit after a bankruptcy are obtaining new credit cards or a car loan. A standard rule of thumb is that consumers will see improved interest rates on credit cards approximately 6 months after filing for bankruptcy and better interest rates on car loans after 12 to 24 months. Car loans can of course generally be obtained sooner, but at significantly higher rates. It may be worth the higher interest rate to speed up credit repair if the consumer can afford it.

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 discusses Debtor’s postings on Facebook...

This San Jose Bankruptcy Attorney is not denying that Facebook has become an international phenomenon, boasting millions of users posting new information everyday. However, Debtor’s contemplating bankruptcy or those who have already filed should be wary of how much information they disclose on social networking sites. Even if debtor’s limit their profiles to “Friends Only” status, they are not necessarily secure from prying eyes. It is best for all consumers, in any legal proceeding, bankruptcy included, to maintain a level of anonymity on the Internet. Posts regarding lavish trips or extravagant purchases can easily be disclosed to bankruptcy trustees by ex-spouses, ex-significant others, or nosey creditors.

It is best to error on the side of caution and limit any posts on social networking sites until all legal bankruptcy proceedings are complete. Information is power in any legal setting and debtors have to assume that any information they post about their spending habits will be used against them. Debtors should protect their private life and personal information by remaining anonymous and flying below their creditors and bankruptcy trustees’ radar.

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 new job bill...

San Jose Bankruptcy Attorneys may want to spread a little potential good news for bankruptcy clients in the Bay Area that are unemployed. The Senate passed a bill on Wednesday offering a tax break to companies that hire the unemployed. The jobs-promoting bill by the Obama Administration is the first of many according to a Fox News article, quoting Democratic leaders, although notably a far cry from the $862 billion economic stimulus bill enacted a year ago as this proposal waves a much smaller price tag at $35 million.

Two major provisions contained in the bill include an exemption for the hiring businesses from the 6.2 percent Social Security payroll tax through December with an additional $1,000 credit if the new employee remains employed for an entire year. Additionally, the bill will extend highway and mass transit programs through the end of 2010 and inject $20 billion into them in time for the construction season this spring.

What does this new hiring tax credit really mean for the unemployed and those facing bankrutpcy due to debt beyond their control? The approximate 250,000 new jobs it may create, says economist Mark Zandi of Moody's Economy.com (Fox News). The economy has shed 8.4 million jobs since the recession began in December, 2007.

Fox News also quoted bill sponsor Sen. Charles Schumer, D-N.Y., as saying it would have an immediate impact since businesses won't have to apply for it when doing their taxes a year from now. "It immediately takes effect," Schumer said. "It goes right to small businesses."

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 has a conversation with a San Diego Bankruptcy Attorney with regard to technology...

After the 341(a) hearing that a debtor must attend following a San Diego bankruptcy under either Chapter 7 or Chapter 13, there exists a requirement that the debtor attend a financial management course. This is the second of the two courses mandated by the 2005 Bankruptcy Abuse and Consumer Protection Act. This second course is supposed to be geared toward teaching the debtor how to avoid getting themselves in financial trouble in the future. As I have discussed in previous blogs, very often the debtor’s financial situation is not a product of the debtor herself but just the consequence of a globally-troubled economy (i.e., lost employment as a result of the employer doing decreased business which stems from the national recession). Regardless, the times themselves may help facilitate greater ease in personal finance management.

Consider how the new age of computers and smart-phones can assist in finding good deals on things. Not only are phones equipped with a basic calculator but I just saw an iPhone application that lets consumers take pictures of barcodes and then the app searches for the best prices for that product. This may not change spending habits but it can promote informed decision-making with respect to individual purchases. The Credit CARD Act set to become law later this month requires creditors to provide online access to account information and the credit companies themselves are setting up web tools to help consumers plan their repayment schedule. Sears, I think, has in-store computers available to shoppers to price-check competitors. Best Buy has a “price-match policy,” as do many stores. And the opportunity to learn what those other prices are is now incredibly easy.

So, as you emerge from your Chapter 7 bankruptcy or you complete your Chapter 13 repayment plan, the modern age can help you ensure fiscal responsibility. Of course, you have to employ the technologies for them to be any good and nothing can change the need for the consumer to be wise in their spending, but financial management is important; this is why, I suppose, it is a required instructional course for debtors seeking discharge following a Chapter 7 or Chapter 13 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 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.