California Bankruptcy Lawyer Blog

A San Jose Bankruptcy Attorney notes the difference...

San Jose residents who are considering filing for bankruptcy should know from a San Jose bankruptcy attorney that Chapter 13 offers some unique advantages to Chapter 7 liquidation. Specifically, in a Chapter 13 bankruptcy debtors may strip off their second mortgage under certain conditions, and debtors may also cram down their auto loan! It’s the cram down that will be the topic of conversation today.

No doubt there are many San Jose consumers in debt who are hesitant to file for bankruptcy for fear of losing their homes and cars. Don’t worry, San Jose, Chapter 13 really amounts to a repayment plan. The Chapter 13 plan itself can vary depending upon a debtor’s disposable monthly income or DMI. Once a plan is approved a debtor will pay of his or her debt over a period of time (usually five years) interest free; but what about the cram down?

Ok San Jose, here goes. If a debtor has owned their car for 910 days before filing chapter 13 and the vehicle is worth less than the amount owed, a debtor has the option to “cram down” the amount repaid through the repayment plan to the vehicle’s value rather than the amount owed. So if you’re an San Jose resident considering filing for bankruptcy and are upside down on your auto loan, Chapter 13 may provide you with some advantages. San Jose and South Bay Area residents who want more information should seek out an experienced bankruptcy attorney.

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

A San Jose Bankruptcy Attorney comments on necessary steps during bankruptcy...

When in the planning and implementation stages of filing for bankruptcy, San Jose bankruptcy attorneys want you to know that it is essential for the debtor to understand some of the requisites needed to file and obtain a discharge in their bankruptcy case. One thing everyone filing for bankruptcy needs to know is the relative timeline involved with their specific case as it relates to credit counseling and debtor education courses. Possession of this knowledge is specifically important for a Chapter 7 Bankruptcy. When in the process of filing for Chapter 7 one must understand that they will be eligible to obtain a discharge much faster than in Chapter 13 . When in Chapter 7, the approximate time from filing and discharge is anywhere from 90-120 days, so keep this in mind.

It is mandatory that EVERY debtor (there are few exceptions to this) take and complete two courses in order to obtain a discharge in their case. These courses have been required since the The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 which not only birthed the Means Test , but section 109(h) of this Act defines the guidelines for Credit Counseling & Financial Management Courses. (See www.usdoj.gov for more info).

One of the most frequently asked questions relating to these courses are “can I take both of these courses at once?” unfortunately the answer to this question is No, you must complete CC before you file, and Debtor Education afterwards. Most approved agencies offer both courses either telephonically or online.

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 Payments during a Chapter 7 Bankruptcy

San Jose Bankruptcy Attorneys notice that many times debtors are often concerned that filing for a Chapter 7 bankruptcy automatically means that they will lose their car and house. While a Chapter 7 filing is technically a “liquidation” proceeding, all is not lost. Debtors are entitled to keep their cars and homes as long as there is not significant equity in any one item. Most people do not lost their home or their car in a Chapter 7 proceeding because of state and/or federal exemptions. For example, in California, single people are entitled to exempt $50,000 of equity in their home and $75,000 of equity for married couples.

One caveat to being able to keep cars and homes is that the debtor must be able to maintain their current payments. If a debtor files for Chapter 7 bankruptcy and he/she is not current on their car payment then the car will likely be repossessed. If they are not current on their home, then the home will go into foreclosure. As a result, in order to keep a car or a home in a Chapter 7 proceeding, the debtor must be current on his/her payments at the time of filing and continue to remain current on those loans during the pendency of the bankruptcy.

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

A San Jose Bankruptcy Attorney on Short Sales and Bankruptcy...

Debtors in San Jose who are considering filing chapter 7 and walking away from their home may want to know whether or not a short sale is a good idea? Put simply, no. More accurately, it’s unnecessary.

There’s no point to going through the short sale process if a debtor is walking away from their home and filing chapter 7. The chapter 7 eliminates any and all liability of the debtor with respect to the home. Moreover, court approval will most likely be necessary to complete the short sale while in bankruptcy. Many attorneys probably wouldn’t consider this part of the bankruptcy process and will charge a debtor an extra fee to accomplish this unnecessary task. Thus, before a debtor begins the short sale process they should consult their bankruptcy attorney.

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 a local large foreclosure

Many San Jose Bankruptcy Attorneys couldn't help but take note when the Cupertino Square Mall, formerly known as Vallco Fashion Park, filed for Chapter 11 bankruptcy protection in September of 2008. After months of litigation, the Chapter 11 restructuring proceeding was converted to Chapter 7 liquidation proceeding. A court-appointed trustee is overseeing the sale of the Mall’s assets and distributing the proceeds to creditors. The case was converted to a Chapter 7 proceeding as a result of the Mall’s failure to make adequate protection payments on its $195 million construction loan.

The Cupertino Square Mall apparently suffered greatly from the downturn in the Silicon Valley and expansion of Westfield Valley Fair in San Jose. High vacancy rates and the mall starting to show its age contributed to the Mall’s failure. In its heyday, the Cupertino Square Mall was one of the premium enclosed malls in the area.

Since the Mall’s conversion to a Chapter 7 liquidation, rumors have surfaced that real estate tycoon, Tram Be may be investing in the property. Any sale would require permission from the Bankruptcy court. Further resolution to the outstanding issues should be resolved at the bankruptcy court hearings on November 12 and December 17.

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.

A San Jose Bankruptcy Attorney discusses the Increase in Chapter 7 Filings

Generally speaking, from a San Jose Bankruptcy Attorney perspective, Chapter 7 bankruptcy filings are up over 35% in Silicon Valley. An increase this dramatic has not been seen since the dot-com bust. Most attorneys in the San Jose area alone have seen their bankruptcy practices double, if not triple, over the past year. The increase in Chapter 7 filings has been driven by the increase in unemployment and the housing market crash. With the jobless rate on the rise and none of the Silicon Valley giants hiring, bankruptcy is often the only recourse. Chapter 7 filings have hit executives, professionals, and blue collar workers alike. Once a debtor falls behind on his/her payments it is next to impossible to get caught up in this economic climate. While most people have reserves to sustain themselves for a period of time, eventually those reserves run out and there is nowhere to turn.

Creditors have been ruthlessly terminating consumers’ credit lines and decreasing limits, not to mention the rampant increase in interest rates and penalty fees. It is no wonder that debtors throughout San Jose and the rest of Silicon Valley have had to turn to Chapter 7 protection.

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

San Jose Bankruptcy Attorney Comments on the Unemployment Stats vs. Consumer Spending on Durable Goods...

While San Jose Bankruptcy Attorneys acknowledge the bleak job market as par for the current course with regard to conversations with Bay Area bankruptcy clients, and as week-ending February 20th reports a weekly increase in jobless claims to 496,000 even though a drop of 13,000 was expected, curiously consumer purchasing of durable goods is up.

According to Wall Street Journal, reported data generated on a 4-week average has increased by 6,000 to 473,750 for consumption of items such as appliances, or goods that will last more than 3 years. This is not typical, as the durable goods average is often sporatic, according to Commerce Department reports, noting its current strength at an increase of 3%.

Also noted is that the biggest decrease for unemployment claims occurred in California, while the largest rise happend in North Carolina due to construction and furniture industries being hit the hardest.

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.

While lenders will generally look at both spouses credit reports prior to making significant loans, there is no such thing as a “combined credit score.” For example, if a woman with an 800 FICO score marries a man with a 600 credit score, the day after their wedding, there is no merging of credit scores that would result in each of them having a 700 FIC score. Each spouse has his/her own credit score based upon their credit history prior to marriage and post-nuptial activity. This is true whether you live in a community or non-community property state. For purposes of a credit report, your credit score will only be impacted by your spouse’s credit issues if you are both listed on the debt and neither of you are making timely payments.

In a divorce proceeding in a community property state you may be liable for your spouses debts incurred during marriage, but this same rule does not apply in bankruptcy. A debt solely held by one spouse can be discharged in bankruptcy and the creditor will not be able to pursue the non-filing spouse. Practically speaking, spouses should assist each other with debts whenever possible to keep both of their credit scores in good standing, which will aid in making large purchases such as cars and homes in the future.

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.

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.

Estimations by the Wall Street Journal show the number of unemployed Americans that are still currently looking for work is 17.5% of the total workfoce. This is whether these individuals have maxed out their unemployment benefits or not.

The Department of Labor issued a Labor Turnover Report that reflects a 4.176 million hire rate in November, and 4.340 million separations, equating to 164 thousand net jobs lost. Likewise, the CES report showed an additional 4 thousand jobs in November.

With Bankruptcy filings on the rise and the job market looking bleak, we have seen many consumers in debt in our San Jose Bankruptcy Offices, as well as our bankruptcy divisions in San Diego, San Francisco and the greater North Bay.

While these are not a positive signs, it is encouraging that Bay Area consumers in debt are willing to reach out to local bankruptcy attorneys to learn more about bankruptcy options in California, as well as Bankruptcy Litigation and debt resolution in San Jose and the surrounding areas. While the decline in job separations is steep, and hiring has not exactly picked up, these numbers may suggest that eventually (perhapas when the March 2010 benchmark revision is announced in Feb 2011), the net change for November employment will be adjusted down.

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