California Bankruptcy Lawyer Blog

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

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

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

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

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

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

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

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

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

A San Jose bankruptcy attorney offers 3 things to remember about Chapter 9 Bankruptcy: 1. Chapter 9 bankruptcy of the United States Bankruptcy Code applies to municipalities such as cities, school districts, hospital districts, and others. Municipalities are state Government entities. 2. Some states do not permit Chapter 9 filings without authorization. This involves enacting a specific statute. 3. Chapter 9 Bankruptcy invloves a repayment plan wherein the municipality and its creditors agree to a re-negotiated payment of debts over an extended period of time. 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 responds to: What Is a Chapter 9 Bankruptcy?

Chapter 9 Bankruptcy Overview

Chapter 9 Bankruptcy is a type of bankruptcy for municipalities. A municipality could be a city, township, school district or county. An example of a municipality that filed Chapter 9 bankruptcy is when Vallejo, California filed Chapter 9 bankruptcy in 2009.

When financially burdened municipalities file a Chapter 9 bankruptcy, their intent is to proceed with a repayment plan that is mutually acceptable by the debtor and the debtee; the company and its creditors. By filing a Chapter 9 bankruptcy, the outstanding debt is resolved in a manner that both parties can live with, since not paying the debt back and having both parties suffer does not work. Filing the Chapter 9 bankruptcy gives the municipality protection from the creditors while the amenable payment plan is reached.

Negotiations during a Chapter 9 bankruptcy may include reducing the debt or debts, dropping an interest rate or prolonging the length of the loan. Refinancing debt is also a factor during a Chapter 9 bankruptcy filing.

One of the upsides for the municipality that files for Chapter 9 bankruptcy is that it renders the creditor unable to impose liquidation of the assets that belong to the municipality. Each municipality is under the jurisdiction of its own state, due to the fact that bankruptcy proceedings are not part of the constitution there for federal court cannot enforce a liquidation.

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 Chapter 9 Bankruptcy

Chapter 9 bankruptcy law is probably the least known and most uncommon form of bankruptcy. Chapter 9 bankruptcy law was created in 1934 as an effort to assist financially-distressed municipalities. Chapter 9 bankruptcy law provides municipalities protection from its creditors while it develops and negotiates a plan for reassessing its debts. Under chapter 9 bankruptcy law, a municipality is free to negotiate both the principal and the interest of its loans and debts, even refinancing at times. One of the most famous chapter 9 bankruptcy cases was filed in 1994 by Orange County, California which involved millions of dollars of debts.

In order for a municipality to be eligible for protection under the chapter 9 bankruptcy law, it must be a “political subdivision or public agency or instrumentality of a State.” Chapter 9 bankruptcy law is governed, ironically, by Section 9 of the U.S. Bankruptcy code.

Municipalities may seek protection under chapter 9 bankruptcy law by filing a petition with the court which contains a list of creditors. The petition is then assigned to a chapter 9 bankruptcy judge. As with chapter 7 and chapter 13 bankruptcies, a creditor is allowed to file an objection to the petition and request relief from stay in order to attempt to collect on its account receivables. However, unlike chapter 7 and chapter 13 bankruptcies, the United States Trustee has much more limited power and control in that he/she cannot propose an alternate reorganization plan. Once the chapter 9 bankruptcy plan is approved, it becomes the new structure of the municipality.

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 mentions famous Chapter 9 bankruptcies.

Orange County was a famous Chapter 9 bankruptcy when they filed due to investment losses.

A second famous Chapter 9 bankruptcy is the city of Vallejo, who filed their famous chapter 9 bankruptcy recently due to their inability to pay pension obligations.

Lastly, Desert Hot Springs, CA was another famous chapter 9 bankruptcy (to California bankruptcies). Their famous Chapter 9 bankruptcy filing was due to a housing discrimination lawsuit.

Consumers in debt file bankruptcy every day. Most debtors in this position worry about their own debt, the future of their family and the focus on thier Fresh Start, rather than famous Chapter 9 bankruptcy filings. If you are in this position, your Fresh Start is near and your questions can be answered now. Get yours!!

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

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

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

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

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

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

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

A San Jose bankruptcy attorney gives a Chapter 9 Bankruptcy Overview

What Is a Chapter 9 Bankruptcy?

Chapter 9 Bankruptcy is a type of bankruptcy for municipalities. A municipality could be a city, township, school district or county. An example of a municipality that filed Chapter 9 bankruptcy is when Vallejo, California filed Chapter 9 bankruptcy in 2009.

When financially burdened municipalities file a Chapter 9 bankruptcy, their intent is to proceed with a repayment plan that is mutually acceptable by the debtor and the debtee; the company and its creditors. By filing a Chapter 9 bankruptcy, the outstanding debt is resolved in a manner that both parties can live with, since not paying the debt back and having both parties suffer does not work. Filing the Chapter 9 bankruptcy gives the municipality protection from the creditors while the amenable payment plan is reached.

Negotiations during a Chapter 9 bankruptcy may include reducing the debt or debts, dropping an interest rate or prolonging the length of the loan. Refinancing debt is also a factor during a Chapter 9 bankruptcy filing.

One of the upsides for the municipality that files for Chapter 9 bankruptcy is that it renders the creditor unable to impose liquidation of the assets that belong to the municipality. Each municipality is under the jurisdiction of its own state, due to the fact that bankruptcy proceedings are not part of the constitution there for federal court cannot enforce a liquidation.

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

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

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

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

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

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

San Jose Bankruptcy Attorney Discusses Debts Accrued By Deceased Mayor Helped Force Town of Moffett To File Chapter 9 Bankruptcy Protection

According to court records filed last month, one reason that the town of Moffett, Oklahoma filed for Chapter 9 bankruptcy protection was that their town’s former mayor, Billy Yandell, had acquired way too much debt for the town while in office. Yandell passed away last December from heart failure. He had served as town mayor for about a decade.

Recent reports indicate that Yandell accrued more debt than the board had been aware of and without its authority or approval. The town's debts include a number of credit purchases, including more than $4,900 in Lowe’s Commercial Services, $95, 208 for two vehicles, and over $3,200 in Dell Computers. Collection agencies are also owed money by Moffett, including $16,183.18 to AWA Collections.

An audit of the Moffett Police Department may have contributed to the town's lack of funds. It was discovered that more than half of the department's operating budget in 2003 and 2004 came from traffic tickets. The Oklahoma Department of Public Safety has indefinitely banned Moffett Police from engaging in any traffic enforcement over a four-mile strip on U.S. Highway 64.

The town filed their bankruptcy petition on December 20, 2006, and creditors are currently prevented from collecting debts owed by the town. According to court filings, Moffett has $199,396.28 in liabilities and $43,033 in assets.

Continue reading "San Jose Bankruptcy Attorney Discusses Debts Accrued By Deceased Mayor Helped Force Town of Moffett To File Chapter 9 Bankruptcy Protection" »

Fremont Bankruptcy Attorney Discusses Bankrupt Doctors Medical Center Is Saved—For Now—With $20 Million Dollar Bailout Plan

In San Pablo, California, Doctors Medical Center has been saved by a $20 million bailout plan that was approved by the California Medical Assistance Commission board last week. Under the details of the financial plan, the hospital, which had filed for bankruptcy, will receive a cash infusion this month and stay open for the near future. The money will be funneled in stages through the state to the West Contra Costa Healthcare District, which owns the hospital. Contra Costa County plans on later getting its money back through the district’s property tax revenue.

The county plans to later get its money back through the district's property tax revenue. The county and healthcare district will work together to set a contract that will delineate management responsibilities for a joint board.

Operating at a $1 million/month loss, the hospital has been forced to cut back on services, reduce pay, and lay off 300 employees. Under the new plan, the hospital is expected to start making a profit by mid-2007.

Doctors Medical Center and the West Contra County Healthcare District had filed for Chapter 9 Bankruptcy at the US Bankruptcy Court in Oakland in October 1, citing $50-$100 million in debts as well as assets.

Continue reading "Fremont Bankruptcy Attorney Discusses Bankrupt Doctors Medical Center Is Saved—For Now—With $20 Million Dollar Bailout Plan" »