California Bankruptcy Lawyer Blog

A San Jose bankruptcy lawyer discusses Insolvency and Involuntary Bankruptcy

One strategy that a debtor has when facing a large amount of debt with little to no assets to cover those debts, is to transfer any current assets to friends and family members. Doing so is called becoming insolvent. Insolvency blocks a creditor’s attempts to levy on certain assets in order to collect on a judgment. This only works with unsecured property, like a car that is owned outright or a really nice painting. A piece of secured property cannot transfer title until all liens and judgments have been first satisfied.

An involuntary bankruptcy is basically what it sounds like, involuntary. An involuntary bankruptcy is analogous to a civil class action lawsuit by a majority of one’s creditors. When a debtor has less than twelve creditors, it takes only one creditor to request the court to initiate an involuntary bankruptcy. When a debtor has twelve or more creditors, it takes the cooperation of at least three creditors to set forth an involuntary bankruptcy. The involuntary bankruptcy petition is proposed to the court, and if accepted that petition is treated exactly the same as a voluntary petition. Nonprofit organizations and farmers are exempt from involuntary bankruptcy proceedings.

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 answers the question: What is False Bankruptcy?

False Bankruptcy occurs when one party files bankruptcy under another party's name and social security number. While false bankruptcy is a type of fraud scenario that often occurs in conjunction with longterm identity theft, it can also happen between families and spouses. An example of the latter version of false bankruptcy is a woman who received Chapter 13 bankruptcy proceeding notice for her son. At the time, her son was 5 years old. It was revealed that her estranged husband had filed bankruptcy in the child's name in an attempt to stay an impending foreclosure on the family home.

If you think you have been a victim of false bankrutpcy, contact your nearest US Trustee field office.

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.

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.

Fremont Bankruptcy Attorney Discusses Three Banks and a Venture Capital Company Push Music Entrepreneur Lou Pearlman Toward Personal Bankruptcy

In Central Florida, an involuntary petition for personal bankruptcy against music entrepreneur Lou Pearlman was filed by American Bank of St. Paul, Minnesota, First National Bank of Trust of Williston, North Dakota, Tatonka Capital Corp. of Denver, Colorado and Integra Bank of Evansville, Indiana. They claim he owes them a combined $48 million.

Claims by each petitioner:

· American Bank $27.1 million
· Tatonka $6.2 million
· First National Bank $14.2 million
· Integra $895,000

In an unrelated Chapter 11 bankruptcy petition, a number of Pearlman’s downtown properties moved closer toward the auction block.

Continue reading "Fremont Bankruptcy Attorney Discusses Three Banks and a Venture Capital Company Push Music Entrepreneur Lou Pearlman Toward Personal Bankruptcy" »