San Jose Bankruptcy Lawyer Blog

A San Jose Bankruptcy Lawyer talks about

In these tough and troubling employment times, employers have the luxury to be more choosing and scrutinizing throughout the interview process. No longer can the average individual be picky about his job choice. On top of your employment history, personal references, and writing samples, employers are now turning to your credit score as a means of scrutinizing an applicant. The theory behind this is that an employee with poor credit history is more likely to (a) focus less on their work and more on their debt, and (b) more likely to steal or manipulate the employer’s money. The Society for Human Resource Management polled its members in 2006, 43% of their companies ran credit checks on some or all potential hires.

This tactic does not seem fair. How can one stay out of the trap of negative credit marks? Without a job it is impossible to pay bills on time, and with missed payments it is impossible to get a job. A few important things to know about an employer who does pull a credit report as part of the interview process. First, the employer must notify you that they are doing so. This seems irrelevant due to the fact that if you refuse said request, the employer is likely not to hire you regardless of your credit score. Second, a potential employer must state on which marks they relied upon from your credit score. Lastly, under Title 11 of the United States Code (the Bankruptcy Code), an employer may not discriminate against an applicant based upon a bankruptcy on their credit. This point is drawn moot as most individuals who file for Chapter 7 or 13 protection are doing so because they have many missed payments, high credit balances, and negative marks on their credit. This gives the employer ample opportunity and excuses to deny employment.

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 bankrutpcy lawyer notes bankruptcy fillings at their highest

Due to San Jose, California’s dramatic housing cost increase in the last five years and the sudden drop in the market, more and more San Jose residents are forced to file for either Chapter 7 or Chapter 13 bankruptcy protection. San Jose alone saw approximately 11,500 personal and small business bankruptcies in 2009. The bankruptcy filings in the Northern District of California, which San Jose is a part of, have more than doubled in the last two years. Most California homes are now upside-down and unemployment is at a record rate.

Such drastic changes in economic status have caused Chapter 7 and Chapter 13 bankruptcy filings to double in the last two years in the Northern District of California. The Northern District encompasses Santa Clara, Santa Cruz, Monterey, and San Benito counties. In the bankruptcy court’s Oakland Division, which encompasses Contra Costa and Alameda counties, saw an increase of fifty-nine percent (59%) from 2008 to 2009. Lastly, the Eastern District of California saw a sixty-two percent (62%) in bankruptcy filings from 2008 to 2009.

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 Bankrutpcy Attorney discuss Vallejo's Chapter 9 Bankruptcy filing

Back in 2008, the city of Vallejo, California, a Bay Area community of approximately 121,000 citizens, filed for Chapter 9 bankruptcy. Chapter 9 bankruptcy primarily deals with the reorganization of municipalities. Vallejo was faced with decreasing tax revenue, rising pension costs, and strong public-employee unions. Two years later, Vallejo is now emerging from its chapter 9 bankruptcy, unfortunately not much stronger than its pre-filing status.

Where did Vallejo go wrong? Vallejo boasts one of the highest public services’ salaries in California. On average, a Vallejo police captain will gross over $300,000 per year and the average Vallejo firefighter will gross $171,000 a year. In an effort to balance its budget, Vallejo has reduced its police force and is currently addressing it pension issues. Currently, Vallejo retirees retain 90% of their highest wages in pension. In a city of 121,000 people, there is no feasible manner in which to support that kind of pay.

The largest reason the Vallejo bankruptcy failed was the fact that neither Vallejo nor the courts forced the city to revamp its already existing luxurious pension policies. Fortunately, Vallejo has made some effort to improve pensions for new employees, forcing them to pay a higher percentage into their pensions.

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 Attorney discusses discharging the government via bankruptcy

It was once believed that taxes owed to governmental agencies could not be discharged in bankruptcy and the debtor was doomed to give a huge portion of their monthly income to repay taxes owed to the government. But this may not be true. Taxes, in certain circumstances, may be dischargeable. There are several strict caveats that apply to the discharge of tax debt, the relevant of which are the age of the taxes based upon the date the returns were due, the date of the assessment of the taxes, the date of dates the returns were filed, and whether the debtor willfully attempted to evade payment of the taxes via fraud.

The very minimum requirements for discharging federal or state income taxes are: (1) it must have been more than three (3) years since the returns were due to be filed, (2) the returns were timely filed or it has been two years since the returns were filed, (3) there was no fraud involved in the non-payment of the taxes, and (4) the taxes were not assessed within the last 240 days.

However, even if the majority of the income tax debt is not able to written off in a Chapter 7 bankruptcy, it is easier to write off the late fees, penalties, and interest associated with the debt. Tax debt is a very tricky and complicated subject and should definitely be addressed to an attorney and not be attempted to be dealt with by an individual. There is absolutely no guarantee that federal and state taxes can be discharged, in fact it is highly unlikely that tax debt will be discharged, but it is possible.

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 comments on what happens to your car after bankruptcy...

Many debtors wonder what will happen to the car during and after bankruptcy. Will the court take my car? Can I keep my car? What happens to the loan associated with my car? California is driven, literally, by automobiles. We use them to get to work, to go grocery shopping, and pick up the kids from school. The fear of losing one’s automobile is enough to drive them away from seeking protection through bankruptcy. But fear not ye Californians, you are very likely to be able to keep your car after bankruptcy.

When filing a Chapter 7 bankruptcy in California, you have two options for your car. You can either surrender it back to the lender and discharge the remaining balance at the end of the bankruptcy, or you can reaffirm the debt and keep the car, so long as you continue to make your payments. The same options in a chapter 7 bankruptcy apply should you be leasing your car, you can either surrender the vehicle and terminate the lease or you can reaffirm the lease terms.

In a chapter 7 bankruptcy, should the debtor decide to reaffirm the debt on the and the lender agrees, the original lien remains on the car and should the debtor default on their monthly obligations, the lender retains the option to repossess the vehicle. If you fail to make your monthly payments prior to your chapter 7 bankruptcy being discharged, the lender may repossess but the remaining balance on the loan (the deficiency) will be discharged at the end of the chapter 7 bankruptcy. If you reaffirm and default post-discharge, the lender retains the option to repossess the vehicle and the debtor is still is on the line for the deficiency balance. However, if no reaffirmation agreement is executed, the debtor will remain liable for any deficiency if the car is ultimately repossessed.

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 answers the question: What is the United States Bankruptcy Code?

The United States Bankruptcy Code is in place for a reason. It is Title 11 in the United State Code and functions as the primary source for all bankruptcy statutes. The United States Bankruptcy Code is divided into 9 chapters as follows:

Chapters of the United States Bankruptcy Code:

Chapter 1 - General Provisions
Chapter 3 - Case Administration
Chapter 5 - Creditors, The Debtor, And The Estate
Chapter 7 - Liquidation
Chapter 9 - Adjustment Of Debts Of A Municipality
Chapter 11 - Reorganization
Chapter 12 - Adjustment Of Debts Of A Family Farmer Or Fisherman With Regular Annual Income
Chapter 13 - Adjustment Of Debts Of An Individual With Regular Income
Chapter 15 - Ancillary And Other Cross-Border Cases

Title 11 (more popularly know as the Bankruptcy Code) was signed into law in 1979 and has had amendments since then, including an overhaul in 2005. It is published by the US government and outlines the laws passed by Congress that pertain to all aspects of bankruptcy.

When the US Bankruptcy Code is amended, current versions become available by different sources. The Office of the Law Revision Counsel (LRC) begins the long process of codification of classifying new legislation that applies to the Bankrutpcy Code's different sections. The new legislation is put into "classification tables" by the LRC, then made available via their website: click here. The most current version is as of January 5, 2009. Another helpful link provides explainations by the LRC with regard to the US Bankruptcy Code: click here. Changes to the US Bankruptcy Code that have not yet been published to the classification tables can be found via this link.

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 chats on what most debtors want to know: How bankruptcy will effect your credit....

The stigma that filing for bankruptcy is the end of your credit life lacks foundation. It is true that filing for bankruptcy stays on your credit report with the three major bureaus for up to ten (10) years. It is also true that it can drop your credit score by up to 100 points. Unfortunately in today’s society, your credit report is basically your lifeline. Lenders use your credit score to judge you as a person when you apply for a car loan, house mortgage, student loan, apartment rental, or credit cards. So it would seem that when a lender sees that a debtor has filed for bankruptcy because they were unable to fulfill their prior obligations, they would be completely turned off from extending credit to that person.

But this is not always the case. Sure, large banks like Bank of America, JP Morgan Chase, and Wells Fargo will look mostly at your credit score because they are volume driven, not customer relations driven. Smaller banking institutions and credit unions are an alternative for people with poor credit and/or bankruptcies. They will work with the individual based upon a personal relationship. They sit down and talk to you about what event(s) happened in your life to cause the negative marks and what you have done to correct them since. Smaller banking institutions and credit unions typically have lower interest rates and more flexible payment terms.

Further, an individual who files for bankruptcy may only discharge his debts in a Chapter 7 bankruptcy once every eight (8) years, and a Chapter 13 bankruptcy every six (6) years. This means that a creditor will have more security and confidence in extending a line of credit to an individual knowing that they cannot discharge their debts again for that amount of time. Therefore, they are more willing to possibly offer a higher limit or lower interest rate than to someone with a slightly higher credit rating who has not previously had their debts discharged. So, just as it was once thought that the world was flat and the center of the universe, bankruptcy is not the end all of credit.

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 explains how lien stripping can protect your assets

Many Americans purchased a new home within the past seven years. Many of those who did so are now experiencing rising monthly mortgage payments while at the same time watching the equity in their home decrease. This is unfortunate as many Americans were relying on a majority of that equity for retirement. When purchasing their homes, it was not uncommon to see a first and second (senior and junior) mortgage taken out secured by the value of the house with the idea that home values would infinitely continue to rise. As Lord Byron once spoke: “When falls the Coliseum, Rome shall fall.” The housing crisis is no different, plummet went the housing prices and down came the rest of the economy.

But unlike Rome, American homeowners with more than one mortgage on their home have hope. This hope is given the unusual name of “lien stripping.” Lien stripping is a fancy term describing the way Chapter 11 or Chapter 13 bankruptcy petitioners can remove the second mortgage (a secured loan) from their property and transform it into an unsecured debt. The advantage of this is that should the debtor not have sufficient monthly income to pay both their first and second mortgage, the default on the second mortgage will not result in foreclosure and loss of the home. The reasoning behind this strategy is that a mortgage is a secured loan, or a loan that can be forcefully repaid through involuntary foreclosure or repossession. Once home values drop below the balance of the first mortgage, the second mortgage is essentially unsecured. Bankruptcy courts have recognized this and thus lien stripping was born.

There are a few caveats to lien stripping. First, the debtor(s) must have sufficient monthly income to maintain payments on their first mortgage. Second, the current market value of the home must be at or below the balance of the secured loan. Currently, bankruptcy courts may not force a lender to renegotiate the terms of loan and many Americans are simply forced out of their homes. Hopefully, tactics such as lien stripping will force lenders to rethink their hard-line strategies of ruining Americans’ lives when, in reality, it was them who placed themselves in the situation they are in with their predatory lending in the past seven years. It was only a matter of time until it caught up with them.

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 notes the closure of Innovative Bank, in Oakland, California...

In our San Jose bankruptcy firm, we noticed that The California Department of Financial Institutions closed Innovative Bank in Oakland, CA on Friday, April 16, 2010. According to its website, the Federal Deposit Insurance Corporation (FDIC) was named Receiver.

Debtors and bankruptcy professionals in Silicon Valley may or may not know that when a financial institution is closed like this, no prior notice is announced to the public.

Clients of Innovative Bank of Oakland may have questions or concerns regarding the closure, thus the FDIC is providing needed information on their website. Bank accounts, certain types of loans such as commerical or auto, certificates of deposit, etc. are just some of the concerns local clients may have. To learn more, please visit this link.

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 explains why Foreclosure Should Be a ‘Fore’ Letter Word

In a recent first quarter study published by RealtyTrac, the largest publisher of foreclosure databases, nationwide foreclosures rose seven percent or approximately 930,000 homes. What does this equate to in the real world? Take a walk around town and count 137 homes. Every time you count your 138th home, that home has been foreclosed upon and another family must find a new place to live.

Currently, California boasts the fourth highest foreclosure rate in the country, behind only Nevada, Arizona, and Florida. According to the study, one in every 62 Californians received a foreclosure filing in the first quarter of 2010. Not surprisingly, California boasts another fourth place finish … unemployment. Currently, 12.6% of Californians are unemployed. Is it any coincidence that as the unemployment rate increases, so does the foreclosure rate?

With no end in sight, how does the average American family of 2.93 people protect themselves from being forced out of their homes following the real estate’s tomfoolery of predatory lending? Americans can turn to bankruptcy for protection of their home which they worked so hard to obtain. The government has created subsidized loan modifications to attempt to assist, but to date that has failed. One advantage of bankruptcy is that it does not entice anyone to purposely default on their loan obligations in order to get better repayment terms. In opposition banks have fought vigorously in Congress to ensure that bankruptcy judges are stripped of any power to adjust loan terms. Said opposition throws fuel on the foreclosure fire.

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 comments on taxes and bankruptcy...

Debtors in San Jose with large amounts of unpaid back taxes may want to know that some taxes are dischargeable in bankruptcy. Specifically, taxes that are three years old from the date of filing are generally dischargeable. Still, if the IRS has audited an individual a debtor must wait an additional 240 days from the date of assessment before those taxes are dischargeable again. Why is all of this important?

If a debtor wants to discharge $25,000.00 in back taxes for the year 2006 and those taxes were filed on time in April of 2007, the bankruptcy petition must be filed AFTER the date the taxes were filed. Otherwise those taxes would not be dischargeable. Moreover, using the same example, if those same taxes (2006) were assessed hypothetically in April of 2008 in order to discharge those taxes a debtor would need to wait an additional 240 days before those taxes become dischargeable. Basically, when it comes to taxes and bankruptcy, timing is everything.

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 provides insight on proofs of claim

Debtors in San Jose should know that Trustees are required by law to review mortgage proofs of claim in a Chapter 13. New guidelines were put into effect April of 2009. Specifically, if a lender files a proof of claim the trustee must:

1.Verify that copies of documents supporting a perfected security interest are attached to the proof of claim.
2.Verify that that is an itemization of the pre-petition fees, costs, and other charges attached to the proof of claim.
3.Verify whether the proof of claim includes a flat fee for review of the chapter 13 plan prior to confirmation and for preparation of the proof of claim and, if so, whether the fee is reasonable.
4.Verify that the secured creditor has filed a proof of claim.
5.If after a trustee reviews the mortgage proof of claim and determines that it is improper the trustee must take appropriate action.

Debtors in San Jose should also note that these duties pertain to all judicial districts, even where local rules expressly provide that debtor’s counsel are required to review proofs of claim as part of their representation. Still, if a specific provision of these guidelines conflicts with a local rule, administrative order, or case law, the local rule, administrative order, or case law will control.

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 reveals information on bonus earnings

A good question came up the other day from a consult that our San Jose bankruptcy firm had with a potential bankruptcy client. He works in an industry that pays out large bonuses every quarter and most of his income is gained from that source. He wanted to know what effect these bonus payments would have on his ability to do a Chapter 7 bankruptcy and what it would mean in terms of a Chapter 13 bankruptcy.

There are two issues involved with this. First what effect does it have on the means tests. For those we look back 6 months and include income, bonus or not, and see what the gross amount is. If you are paid a bonus every 3 months then you may have to include two bonus payments into the calculation. 2nd issue is will future bonuses be taken by the bankruptcy Court. Short answer is, maybe.

For the Chapter 7 trustee to lay claim to the bonus income that income needs to be 'earned' at the time of filing and not contingent upon further work or time with the company. Basically it needs to be fixed. Then we'd look at exactly when the case was filed and determine how much of the 'earned bonus' was due at the time of filing. For example if you worked 1 of 3 months and you were owed that bonus at the time of filing then the trustee may make a claim for 33% of it.
This is a complex issue and if this situation applies to you then I would seek out the advice of a knowledgeable bankruptcy lawyer here in the Portland Oregon area. Timing and correct valuation and treatment of bonus income can make a huge difference in your case.

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 provides advice and applauds the thorough bankruptcy filer...

Recently in our San Jose bankruptcy firm, we had a current client say this to our bankruptcy specialist: “We are in the process of completing our bankruptcy intake packet, specifically we are listing our assets and had questions. I have no problem listing computer, tvs, electronics, but we were wondering how you could list furniture (much of which has been passed down for generations - of value only to us). We have no furniture purchased later than 5 years ago, and that was used and off of ebay. How do you estimate value of furniture piece by piece aged over 50 years? Also, we have numerous musical instruments and have absolutely no idea of their value.”

When the bankruptcy specialist ask for my input, I said this: When you are completing your bankruptcy petition, I recommend using garage sale values. Generally when you are listing old furniture, unless they are valuable antiques, what you believe you would pay for them if you were at a garage sale. While that couch or chair may have sentimental value as the chair where you and your siblings would watch tv, it could be that no one in their right mind would pay for the chair. As for any sorts of instruments you may have, depending on the condition, you may be able to see what comparable instruments are being sold for on websites such as craigslist or ebay.

Good job on being thorough!

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 Payments During a Chapter 7 Bankruptcy:

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 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 Chapter 7 Filings

Chapter 7 bankruptcy filings are up higher than ever in Silicon Valley. An rise this large has not been seen in years. 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, teachers, and blue collar workers alike. Once a debtor falls into major debt 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.

Chapter 7 has been a savior for many due to Creditors cancelling debtors’ credit lines and lowering limits, as well as the dramatic increase in interest rates and late fees. It is no wonder that the Bay Area and Silicon Valley have had to turn to Chapter 7 protection.

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 one economic impact of the “Swine flu”

Given the current state of the economy, one more problem and even the most previously successful businesses will break. This is unfortunately the case for Coharie Hog Farms, Inc. In addition to the dramatic increase in the cost of feed during 2008, then pork being associated with the “swine flu,” or H1N1 virus. Even though the virus is transmitted between humans and not by hogs or pigs, the initially rampant referral to the H1N1 virus as the “swine flu” has created a financial crisis for livestock businesses that deal in pork.

Coharie Hog Farms, Inc. had to file for Chapter 11 bankruptcy protection given the recent devastating decrease in pork sales. The Farm owes over $50 million to creditors. Coharie has been forced to liquidate its livestock and other assets in its bankruptcy proceeding. As the largest independent pork provider to Smithfield Foods Co, consumers may feel the loss of Coharie Hog Farms in its pocket book when purchasing Smithfield products.

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 irony of a credit card company filing for bankruptcy.

Millions of consumers across the United States have had to file for some form of bankruptcy protection over the past year due to insurmountable credit card debt. Ironically, once of the nation’s small business credit lenders has filed for Chapter 11 bankruptcy protection. Advanta Corp. was forced to file for bankruptcy protection even after it closed its credit card lending business but it continued hemorrhaging cash reserves. Advanta Corp.’s banking entity may be shut down by the government because its capital reserves are below regulatory requirements. At the time of filing, Advanta Corp. had $363 million in assets and $331 million in debt.

Advanta Corp. was the victim of the economic downturn that has plagued the entire nation. When its clients could not afford to repay their debts the company was left with mountains of loan losses. Since Advanta was not being repaid by its customers, it was unable to keep up with its own debts and eventually laid of half of its employees to stay in business. The Chapter 11 filing will allow Advanta to preserve the value of its remaining assets and continue to recover payments from retail paper.

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 Lenders Motivation for Foreclosure

Many consumers are confused as to why they are constantly hearing about loan modifications and the Administrations plan to aid home owners, but when they actually try to obtain a loan modification are just given the runaround. A big problem with the process is lender incentive to actually provide debtors with loan modifications. According a report by Real Capital Analytics, lenders are recovering between 60 and 70% of the loan values on foreclosed properties. In some state the recovery rate is as high as 78%. In California, the recovery rate is especially high: San Francisco has the third highest recovery amount at 70%, and Los Angeles is at 70% plus.

The best recovery rates are on commercial mortgages for retail properties. In 2009, lenders recovered $1.9 billion on 145 commercial mortgages that were in default. Higher recovery rates in California may make lenders less likely to negotiate with consumers in California compared to consumer in places such as Michigan and Florida which have recovery rates as low as 45%.

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 National Job Loss Figures

The State of California lost 732,700 jobs in the past year. California had the highest loss out of all 50 states. Although percentage wise Arizona and Michigan suffered the biggest losses over 12 months given their mutual 7.5% decrease.

Loss of jobs has a huge impact on each state’s economy. In San Jose alone, huge numbers of jobs have been lost. Beyond the loss of tax revenue from unpaid wages, incidents of requests for county and state assistance are on the rise.

For debtors who are recently unemployed, and unable to keep up with their financial obligations their levels of daily stress can be unbearable. Various solutions are available to debtors including Chapter 7 and Chapter 13 bankruptcy proceedings, loan modifications, and Legal Debt Settlement.

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 California’s Debt:

There is already a problem with California’s budget. Last year, Controller John Chiang released a report that California wasw already $1.1 billion behind in collecting the revenue necessary to meet the recently signed budget (as of October 2009). Much of the deficit has resulted from a $2.1 billion drop in California tax collection.

California has been hit by the continuing loss of jobs and an increasing gap in debt sales. California’s budget has also been negatively impacted by the California Supreme Court’s ruling that the Governor and Legislature had illegally used $3.6 billion of California’s money that had been budgeted for local transportation agencies. The misappropriation of funds resulted from the government’s attempt to balance the budget since 2007.

California is starting to see signs of recovery, but it will probably be awhile before it can truly balance its budget and thrive.

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 Bankruptcy Boom

Many Bay Area family law attorneys are shifting their practices to include, and sometimes even focus, on bankruptcy proceedings given the current economic downturn. Since 2008, membership in the National Association of Consumer Bankruptcy Attorneys has increased by approximately 33%. This is a dramatic increase after many attorneys left the field in 2005 once Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). BAPCPA dramatically increased due diligence requirements for attorneys and implemented stricter requirements for consumer filings. The 2005 reformation legislation was primarily intended end the abuse of the bankruptcy court by college graduates with massive amounts of student loans and consumers who had frivolously racked up inordinate amounts of credit card debt.

Another result of the BAPCPA legislation was a nearly 500% increase in paperwork required to be filed by bankruptcy attorneys, which has in turn caused attorneys’ fees to increase. Debtors are also now required to take two credit counseling classes, one prior to filing and one prior to discharge of the bankruptcy proceeding. Even with all of the additional hoops created by BAPCPA, consumers are in such a financial crisis that bankruptcy is often the only solution. The increase in bankruptcy attorneys has allowed debtors to obtain the financial relief they need during these tough economic times.

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 Entrepreneurial Benefit of Restructuring in a Chapter 11

Abe Alizadeh is an entrepreneur who started as an entry-level employee at a Jack in the Box in Chico, California. Alizadeh eventually opened 70 Jack in the Box restaurants of his own and 10 T.G.I. Fridays locations. Alizadeh also has his own development company Kobra Development. Unfortunately, these tough economic times have seriously impacted even once successful entrepreneurs.

Alizadeh has now had to file Chapter 11 Bankruptcy for his Jack in the Box locations and temporarily closed them down. Kobra Development has also filed for Chapter 11 protection. Carlson Restaurants Worldwide Inc. (CRW), the owner of the T.G.I. Fridays brand, recently forced Alizadeh to close his Fridays locations.

However, even with all of his current financial difficulties, Alizadeh has remained optimistic. He is utilizing the protections provided by Chapter 11 bankruptcy law to restructure his debt and move his companies swiftly through the bankruptcy process. Alizadeh is optimistic that at least his Jack in the Box operations will quickly return to business as usual and weather the economic storm.

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!