San Jose Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney has a word on the cram down and the absolute priority rule...

In re Preez case (30 f3d 1209, 9th cir 1994), the debtor in his plan provided for 100% payment to his class iii unsecured creditors without interest payable over 67 months. Plan further provided that subject to income being available that debtor could pay himself a salary of $2,000.00 per month. This violated the absolute priority rule.
The failure to pay unsecured creditors for post confirmation time value of their money (interest) precluded that creditors were paid in full. This is only important if a junior class is receiving funds. The debtor was deemed to be a junior interest due to his rights to income as salary over life of the plan. This triggered absolute priority rule that class iii must receive 100% which requires post confirmation interest.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy lawyer speaks on prearranged bankruptcies...

When Citadel Broadcasting announced that it planned to file a “prearranged” Chapter 11 bankruptcy, some Bay Area consumers went "huh?" A “prearranged” bankruptcy is generally defined as a filing where the debtor has already worked out an arrangement with its major creditors. The idea behind working with creditors prior to filing is to help ensure the process runs relatively smoothly and keep the company’s time in bankruptcy as short as possible.

In Citadel’s case, it negotiated with its major creditors to reduce its current debt balance from approximately $2 billion, to $760 million. By decreasing its debt by more than half, Citadel planned to be able to emerge from bankruptcy quickly and be more profitable going forward. In return for the reduction in debt, Citadel relinquished virtually all of its equity to creditors. Citadel was forced into bankruptcy as a result of its crushing debt, given the depressed advertising market and increased competition.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose Bankruptcy attorney has news for bankruptcy candidates...

A penny saved is a penny earned! With that saying in mind, debtors considering filing bankruptcy may want to know that H.R. 4506 aka the “Bankruptcy Judgeship Act of 2010 is heading to the Senate. The Bill, sponsored by Rep. Steve Cohen creates 13 new permanent bankruptcy judgeships and converts 22 temporary judgeships to permanent judgeships.

To finance the positions, the bill raises the filing fees for debtors filing chapter 7 or 13 $1.00, and $42.00 for chapter 11 cases. The bill must still go through the Senate Judiciary Committee as well as the Senate. Still, if debtors want to save a buck, now is the time to file!

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose Bankruptcy attorney makes the point clear that filers of bankruptcy are not alone...

San Jose Residents considering filing bankruptcy should know they are not alone. According to my Bay Area bankruptcy practice, statistics compiled by the Administrative Office of the U.S. Courts, cases filed by individuals or state regulators under the Fair Credit Reporting Act and Fair Debt Collection Practices Act jumped 53 percent!

In addition personal and business bankruptcy filings increased 35 percent in the last fiscal year! Specifically, more than 1.4 million filings occurred. Statistically that’s the most filings since the bankruptcy laws changed in 2005.

Those considering filing for bankruptcy in San Jose should also consider whether their Bankruptcy attorney incorporates any fair debt collections act lawsuits as part of their services. In some cases, a debtor may not even have to file bankruptcy if creditors have violated either Federal Law or State Law.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney addresses Ala Moana Shopping Mall's Bankruptcy...

Ala Moana Center, Hawaii’s largest shopping mall, emerged from bankruptcy on January 25, 2010 as a part of its’ owner, General Growth Properties’ restructuring. Ala Moana Center was among 96 properties owned by 180 General Growth debtors to emerge from bankruptcy with the final 16 loans totaling $2.1 billion that remain to be restructured expected to be completed over the next few weeks. General Growth filed for Chapter 11 bankruptcy in April 2009 in an effort to restructure 74 mortgage loans totaling $9.4 billion. The company owns or manages more than 200 shopping malls across the United States, including five properties in Hawaii. In total, all of its properties include more than 24,000 stores and about 200 million square feet of retail space.

The company filed for bankruptcy after amassing $27 billion in debt. It is the second largest mall owned in the United States and is the biggest real estate bankruptcy in United States history. The company also completed a four-year extension of a $155 million mortgage on the Caroline Place Mall in North Carolina. Other properties owned by General Growth that emerged from bankruptcy included Four Seasons Town Centre , Ward Centre, Ward Entertainment Center, Ward Gateway Village and Prince Kuhio Plaza.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney Comments on Foreclosure Protection...

Residents and consumers in San Jose who are working on a loan modifications may be interested to know that the Obama administration is considering additional protections to ensure homeowners are treated fairly and consistently under its mortgage relief program.

I can’t tell you how many times, as a San Jose Bankruptcy Attorney, I have clients sit down in my office and tell me their house is going through foreclosure but their working on a loan modification. Generally the story goes like this; borrower calls bank and inquires about a loan modification. Bank tells borrower that in order to be considered for a loan mod they must first be delinquent on their mortgage. Generally the magic number is three months. Borrower stops paying mortgage for three months. During this time borrower sometimes uses the mortgage payments on a loan modification attorney or generally spends the money on other expenses. Loan modification fails…surprise! Borrower is now three months behind on their mortgage. Borrower is now facing foreclosure.

It appears that the Obama administration is not unaware of these practices. According to the associated press the administration has cited cases of lenders continuing with foreclosures while homeowners were being evaluated for help. Thankfully, that practice would be banned under the new rules.

Still, these rules apply only to the relief program setup by the Obama administration. Homeowners who are not seeking help under the Obama plan should consider bankruptcy as an alternative. At the very least bankruptcy will stall the foreclosure process and can in certain circumstances provide a solution that will allow a debtor to keep their home!

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney Notices U.S. Economic Stress Peaks in December

Despite the unemployment rate holding steady, this San Jose Bankruptcy Attorney thinks foreclosure and bankruptcy rates have risen. According to the associated press, in December 2009 the average U.S. County’s economic stress hit its highest point since the recession began in December 2007.

The AP's Economic Stress Index found that the average county's score in December was 10.8. The previous worst reading since the recession began in December 2007 was 10.3 in March 2009.

The index looks to a county’s unemployment, foreclosure, and bankruptcy rates and calculates a score from 1 to 100 based on those factors. Generally, any county whose score exceeds 11 is considered stressed. Approximately 45 percent of the nation's 3,141 counties were deemed stressed in December under this index.

Over the past six months, foreclosure rates have risen fastest in Western counties from Montana to Arizona. Bankruptcy rates in the past six months have grown fastest in Nevada, Arizona, California and Utah.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney Observes that you can go from filing Bankruptcy to the Olympics...

This San Jose Bankruptcy Attorney has noticed that athletes are known for their sometimes peculiar superstitious behavior. Just ask Skier Michelle Roark, who wears the same perfume to each race, and makes the scent herself. This routine began after Roark’s sports psychologist suggested she visualize skiing well with all five of her senses before events. She found she could hear, see, taste and feel success, but not smell it. Consequently, Roark began making her own perfume!

Still, not all athletes believe in superstitious rituals. Just ask freestyle skier Jeret Peterson who told Fox News, "I think superstitions and lucky charms are for people that don't have confidence.”

Peterson himself knows a thing or two about luck. In 2006 he took $550,000 he won during one night at the blackjack table an invested it all in real estate…oops. After the real estate bubble burst Peterson had to file for bankruptcy in 2007.

Despite this setback Peterson has made his third U.S. Olympic freestyle skiing team and gone from Bankruptcy to the Olympics.

So from all those San Jose residents contemplating bankruptcy we say Congratulations to Mr. Peterson! We wish you the best of luck…even though you don't need it.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney comments on Foreclosure...

Most San Jose Bankruptcy Attorneys will agree: a short-sale is generally defined as a voluntary sale of a piece of real property for an amount lower than the amount currently owed on the mortgage. A foreclosure is technically an involuntary surrender of the real property to the bank/lender, although many consumers are voluntarily allowing their homes to be surrendered to the bank because they can no longer afford them. A short-sale requires the lender’s approval and can be difficult to negotiate because buyers are few and far between in this economy. The people receiving the greatest benefit from the short-sales are the brokers and agents facilitating the sale. However, one benefit of a short-sale versus a foreclosure is that consumers are generally able to get new mortgages from conventional lenders two years after a short-sale, but will have to wait five years after a foreclosure. Although, FHA loans are generally available to consumers who have had a foreclosure after 2 years also. Both the foreclosure and short-sale will negatively impact a consumer’s credit score, but the short-sale is generally not viewed quite as negatively as the foreclosure.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

San Jose Bankruptcy Attorney Discusses the increase in retail bankruptcies...

Due to the less than stellar holiday shopping season, this San Jose Bankruptcy Attorney sees 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 questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation 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 downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!