San Jose Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney provides a Business Creditor and Debt Overview

The majority of creditors are business creditors. There are very few personal creditors listed in bankruptcy, as many people do not have the money to loan these days. The greater part business creditors consist of credit card agencies. These debts are most often dischargeable and these business creditors rarely seek any kind of recovery. While personal debts are still dischargeable in bankruptcy, business creditors take the largest hits. Business creditors can afford to take these kinds of risks based upon the interest rates, late fee, and penalties they assess on each account. Business creditors can really hike up interest rates when a debtor misses a monthly payment. Often times, the business creditor will raise the interest rate to a point where the debtor will never be able to pay it all off and must either choose a life of indebtedness or filing for 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!

A San Jose bankruptcy attorney discusses Bankruptcy Law Statutes

First, what is a bankruptcy law statute? The Constitution granted certain powers to Congress. One of those powers included establishing uniform laws on the subject of Bankruptcy throughout the U.S. Thus, bankruptcy law statutes were born. All of the federal bankruptcy law statutes are contained within Title 11 of the United States Code. There are general federal bankruptcy law statutes which any debtor can default to should their own state’s bankruptcy law statutes not provided sufficient protection or they do not qualify under the state bankruptcy law statutes. Bankruptcy law statutes also govern the criminal aspect of bankruptcy including bankruptcy fraud, which are primarily focused upon the mental intentions of the debtor. Bankruptcy law statutes also govern such things as wage garnishments and bank levies.

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 address the commonly asked: Can I save my business through bankruptcy?

Absolutely an individual can save their business through bankruptcy. The most common way to save a business through bankruptcy is to file for Chapter 11 bankruptcy protection. This is known as the reorganization of a business through bankruptcy and what you mostly hear about in the news. In order to save a business through bankruptcy, the business must reorganize itself pursuant to certain standards set in place by the Bankruptcy Code and Trustees. There are several types of businesses out there including a sole proprietorship, a limited liability corporation, and a corporation just to name of few. Bankruptcy can save any of these types of businesses and reorganize them through a plan and get them back on their feet. Municipalities file for protection under Chapter 9 which is similar to Chapter 11. Bankruptcy is the main way to save a business that is struggling or is under water.

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 discusses Bankruptcy Credit Counseling

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 completely transformed bankruptcy. One of the major changes made by the BAPCA was to implement a mandatory pre-filing credit counseling course. The BAPCA also created a mandatory post-filing, pre-discharge debtor education course.

The pre-filing course is taken with an approved credit counseling organization and includes an overall evaluation of a debtor’s current monthly income and expenditures. The counseling course attempts to help the individual filing for bankruptcy create a monthly budget and cut out excess spending. The course can be taken either online or over the telephone and lasts approximately one hour. The credit counseling certificate is valid for 180 days from the date the course is taken. The credit counseling organization will then issue a certificate of completion which is filed with the court.

The post-filing, pre-discharge course is also provided online and over the telephone. This course generally takes more time than the pre-filing course and includes information on creating and implementing a budget, managing one’s money post-discharge, and using credit wisely and effectively.

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 what a bankruptcy petition is...

A bankruptcy petition is the document that is initially filed with the court which sets forth all of the debtor’s personal and financial information. A bankruptcy petition includes the following: a voluntary petition, a list of real property, a list of personal property (bank accounts, household goods, jewelry, clothing, etc.), a list of exempted items, a list of your secured and unsecured creditors, a statement of your monthly income and expenses, , the means test, and what is known as the Statement of Financial Affairs. The Statement of Financial Affairs included in the bankruptcy petition includes such items as your gross income for the last three years, any foreclosures or repossessions, any civil lawsuits against the debtor, and many other items related to the debtor’s finances.

A bankruptcy petition appears to be fairly simple when first viewing it, but a bankruptcy petition is actually a very intricate document where the smallest detail or omission can mean a world of trouble, including losing a house or car or retirement account. Probably the most scrutinized section of a bankruptcy petition is the monthly income and expenses schedules. This is what the Trustee views most important as this is where debtors tend to fudge the most.

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 Mortgage Modification and Bankruptcy

One of the hottest new trends in the mortgage market is what is called a mortgage modification. A mortgage modification is when the lender, or mortgagor, sits down with the borrower, or mortgagee, and renegotiates the terms and possibly the amount of the current mortgage. A mortgagor is inclined to at least attempt a mortgage modification for the simple reason that as currently stands, the mortgagee cannot pay its mortgage and the lender is virtually without profit on the loan. The lender then has to go through the lengthy and somewhat expensive process of judicial foreclosure.

Mortgage modifications are rare however. Often times, borrowers attempt to go after a mortgage modification alone. A lender can take advantage of this as it is likely the individual attempting the mortgage modification is inexperienced and not as knowledgeable in the real estate field.

Another common trend arising is to see borrowers attempt a mortgage modification while preparing for a chapter 7 bankruptcy. This added pressure by the borrower of threatening to file bankruptcy and discharge his or her debts causes the lender to think twice about the mortgage modification. This is furthered by the 90-day automatic stay of bankruptcy. It is best to consult an attorney or legal professional before attempting a mortgage modification.

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: Who can exit bankruptcy, Chapter 7?

Answer: Anyone including corporations can exit chapter 7 bankruptcy.

The chapter 7 process is straight forward and allows a debtor to exit bankruptcy in a relatively expedited process. Generally, to exit bankruptcy in a chapter 7 the process involves three steps. First, a debtor takes a pre-filing counseling course. Next a debtor files their bankruptcy petition. Next, a debtor takes their post filing counseling course. Last, a debtor attends the 341 hearing. After the 341 hearing a debtor can generally sit back and wait for their discharge. To exit bankruptcy in a chapter 7 it’s that simple.

Question: Who can exit bankruptcy, Chapter 13?

Answer: Only individual debtors can exit Chapter 13 bankruptcy. The chapter 13 process is more complicated than Chapter 7. Chapter 13 consists of a “plan” that restructures a debtor’s debt. The “plan” must be confirmed by a judge. Generally, Chapter 13 plans last 3 or 5 years. During that time a debtor makes regularly scheduled payments to the appointed trustee for the duration of the plan. Once the plan is finalized a debtor then receives their discharge. While it is arguably a more tedious task to exit bankruptcy in a Chapter 13, there are often benefits to filing a Chapter 13 as opposed to a Chapter 7. An experienced attorney can help a debtor make this choice.

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 explains the bankruptcy exit plan...

Most debtors contemplating bankruptcy often hesitate to file because they fear the long term impact bankruptcy will have on their credit and their ability to function in today’s society without good credit. A simple solution to this dilemma is having a good bankruptcy exit plan.

To begin, despite what banks or neighbors may have told you, bankruptcy is not a one way ticket to financial purgatory. Most debtors when they file already have poor credit and a high debt to income ratio. Once debt is discharged in bankruptcy a debtor’s debt to income ratio will immediately improve. Thus any bankruptcy exit plan should begin with a debtor running their credit to ensure that the debt has actually been removed from their credit report.

A good bankruptcy exit plan also acknowledges reality. Thus, debtors should understand they probably won’t receive credit card solicitations for 18 to 24 months. Thus, a good bankruptcy exit plan will account for this period of time. Despite what some may say, it’s absolutely possible to survive today without credit cards. Debtors simply need to account for all of their expenses and calculate a daily, weekly, and monthly budget based on their income. If a debtor is overextended they should downsize. If a credit card needs to be used for purposes such as renting a car or hotel room, debtors should use a debit card.

Last, any good bankruptcy exit plan should include a savings plan. Rather than depending on credit cards to get through tough financial times, post bankruptcy a debtor should start saving about six to nine months worth of living expenses. These funds can then be used during emergencies rather than credit cards.

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 mentions same sex bankruptcy filing

California’s Supreme Court decision to allow same-sex marriages brought some relief to the ‘partner’ aspect of same-sex marriage, but brought nothing to the table when it comes to filing bankruptcy. Because bankruptcy is controlled by federal law (11 U.S.C.), a heterosexual couple may file jointly but a homosexual couple may not. This is because federal law does not legally recognize homosexual marriages. What makes this worse is that in states that have approved same-sex marriage, each spouse is liable for one another’s debts. This is a complete oxymoron; the state government says homosexuals can be married and share complete liability for debts, but the federal government says a homosexual couple cannot file jointly for 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!

A San Jose bankruptcy attorney discuss student loans and bankruptcy

Prior to the dramatic change in bankruptcy law in 2005 with the adoption of the Bankruptcy Abuse Prevention and Consumer Act (BAPCPA), private student loans could be discharged in bankruptcy. However, post-BAPCPA law very rarely allows for any kind of student loan, government-backed or private, to be discharged in bankruptcy. Thankfully, a few legislators have stepped up and taken initiative against this change by proposing that once again private student loans can be discharged through bankruptcy.

Private student loans can carry an interest rate of fifteen percent (15%) and higher. Student loans, unlike most other loans, do not become ripe until the student either graduates or leaves school. Interest is charged on the principal balance however throughout the entire time the student is attending school. With the rising costs of the University system in California and the decreasing availability of well-paying jobs, more and more people are deterred from continuing education either after high school or post-graduate education. A law student will likely graduate with $100,000 or higher in student loans with no guarantee of a decent paying job following graduation.

Under the current law, BAPCPA allows for Chapter 7 debtor to receive a full discharge on their unsecured debt; however certain debts such as spousal support, child support, student loans, and most tax debt are not dischargeable. Proponents for the new legislation on student loans argue that student loans are like other dischargeable debt in that they do not directly contribute to one’s wellbeing. Advocates for the new legislation argue that allowing private funded student loans to be discharged will decrease a lender’s security and force them to charge higher interest rates and fees to cover the potential for lost income.

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 explains the means test...

The 2005 changes and amendments to Section 11 of the United States Code (U.S.C.), the Section that deals with bankruptcy, were designed to prevent alleged abuse of bankruptcy and to require that debtors pay for those debts which they knowingly incurred. The legislation made it much more difficult for the average American to file for, and eliminate, their debt. It appears that the legislators want to a make Chapter 7 bankruptcy discharge tougher to obtain and push debtors into a Chapter 13 repayment plan.

One of the major changes/additions in the 2005 legislation was creating the “means test.” This test is a two part test which takes into account the disposable income a debtor brings in after his/her living expenses are taken into account. Obviously, those who are deemed to have too much monthly excess income will not be allowed a Chapter 7 discharge and will be forced to either file under Chapter 13, or not file at all. Under the old laws, judges and trustees had more discretion in their decisions and could judge each case by its own unique circumstances.

A formula was devised which exempted “survival” expenses, such as food and mortgage, and looked at the excess income. Should said monthly income exceed twenty-five percent (25%) of their unsecured nonpriority debt (mainly credit and department store cards, medical bills, and personal loans), the debtor may not file for Chapter 7 bankruptcy. The second part of the test measures the debtor’s income to the state’s median income and if the debtor’s families combined gross income is greater than the median income for that state, the debtor may need to file for Chapter 13 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!

A San Jose bankruptcy attorney discusses foreclosure

California is seeing a new trend in lawsuits; Homeowners Associations are suing former homeowners over unpaid association fees on homes that have been foreclosed upon and individuals who have filed for bankruptcy. On top of the association fees already owed, these individuals are being sued for attorney and court fees associated with the lawsuit. One of the ways foreclosed and bankrupt homeowners are getting hit with these fees is that when the bank forecloses on the house, the debtor(s) name(s) are left on the Deed and thus they are liable for the yearly fees.

A bankruptcy filing discharges any homeowner's fees that accrued before the bankruptcy case is filed. The discharge does not release the homeowner for fees for months after the case is filed, for so long as the debtor owns or occupies the residence.

The newly enacted 11 USC 523(a)16 discharges “any debt for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor’s interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising before entry of the order for relief in a pending or subsequent bankruptcy case . . . .”

The new language being “as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest” is what triggers the liability.

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 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 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 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 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!

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 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 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!

San Jose Bankruptcy Attorney discusses FairPoint October 2009 Bankruptcy

On Monday, October 1, 2009, FairPoint Communications, Inc. filed for Chapter 11 bankruptcy protection. FairPoint intends to use the Chapter 11 restructuring process to alleviate itself of approximately $1.7 billion worth of debt.

FairPoint became the largest LEC in New England after it purchased Verizon Communications Inc.’s New England landlines. The debt FairPoint assumed as a result of that purchase caused FairPoint’s ultimate insolvency.

In order to relieve itself of significant amounts debt, FairPoint is working with its creditors to reduce its debts and crushing interest obligations. FairPoint will also likely have to make additional layoffs and convince its union employees to take pay cuts.

FairPoint has issued a statement to waylay the concerns of the New England utilities regulators that its daily operations will not be impacted by the filing and will continue to provide reliable, uninterrupted service to its customers.

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 frim attorney reflects on Capmark's bankruptcy

The collapse of the real estate market has profoundly impacted more than just individual consumers. Capmark Financial Group, Inc. announced last year that it filed for Chapter 11 bankruptcy. Several of Capmark’s subsidiaries also filed in conjunction with Capmark. Capmark’s three primary businesses are lending and mortgage banking, investments and funds management, and servicing.

Capmark was forced into bankruptcy as a result of $1.6 billion second quarter loss due to the continued deterioration of the commercial real estate market. Capmark was placed into a further financial bind when the FDIC required Capmark to increase the liquidity of Capmark Bank, one of its commercial mortgage banks.

The Chapter 11 restructuring gave Capmark the opportunity to restructure its debt in order to reduce its current debt obligations. At the time Capmark stated that during the restructuring process it would be able to successfully continue to conduct trust services and meet its current lending commitments, and that it will not affect its customers’ deposits.

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 to the issue of your bankruptcy estate...

Debtors in San Jose may wonder what exactly will be included in their bankruptcy. Your bankruptcy estate refers to all of your property that is part of your bankruptcy case. Not all property you own is in your bankruptcy estate. For example, property you acquire after you file bankruptcy generally falls into this category. Thus, you generally don’t need to worry about exempting such property.

There are several broad categories, however, a debtor should understand when considering their bankruptcy estate. First, property a debtor owns and possesses. This includes everything a debtor has in his or her possession that they own whether or not they owe money on the property e.g. an automobile or a house. Next, property a debtor owns but does not possess, e.g. a car you’ve loaned to a friend, or a deposit held by a stockbroker. A debtor must also be aware of property they are entitled to receive. Property a debtor has a legal right to receive is also included in the bankruptcy estate. This would include wages, royalties, or commissions you have earned but have not yet been paid, tax refund, vacation or termination pay, property you’ve inherited but haven’t received etc. Other categories of property included, community property, certain property received within 180 days after filing, and property generated by estate property.

So San Jose, now you know what property is covered in you bankruptcy estate. To ensure that the proper exemptions are applied I recommend contacting an experienced bankruptcy attorney.

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 says a few words about bankruptcy and divorce...

One of the most common reasons that married couples ultimately decide to file for divorce is directly related to financial difficulties. Financial issues often lead to stress and anxiety that negatively impacts the marital relationship. Fighting over unpaid bills and blaming each other for spending practices and/or meeting expected earning potential add to an already tense situation. Rather than waiting for financial distress to destroy what would otherwise be a sound marital relationship, pursuing proactive debt solutions can help married couples out.

Filing for bankruptcy is not the end of the world. While it may stay on a person’s credit report for up to 10 years, creditors understand the current economic climate and will not have anyone to lend to if they do not do business with consumers who have had to seek relief through bankruptcy. Married couples have the option of filing either jointly, or just one partner can file. Given the status of current federal law, domestic partners are not able to file joint bankruptcy petitions.

Given the choice of filing for bankruptcy or letting financial distress push a relationship to the breaking point, at least discussing the possibility of filing with a qualified attorney may go along way to repairing communication between partners and relieving financial stress.

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 shares that middle class women may be the most suseptible to bankruptcy...

Are you a middle class college educated woman living in San Jose? Did you know that statistically you are possibly more susceptible to Bankruptcy? Read on to learn more!

According to Harvard Law Professor, Elizabeth Warren, educated Middle Class women are most likely to file for bankruptcy. This fact remains true despite most women who file have attended college. In fact, Professor Warren notes that having a college degree doesn’t seem to protect women from filing bankruptcy as much as it does for men! Professor Warren attributes this anomaly to the fact that women more often find themselves placed in the single parent role.

Perhaps the most alarming statistic from Professor Warren’s piece is that more women will file for Bankruptcy in 2010 than those who will graduate from college, receive a diagnosis of cancer, or file for divorce! To temper this trend Professor Warren advocates that women spend less and have a financial backup plan when having children. Only time will tell if this advice goes unheard.

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 says all is not lost for recreational activities after filing bankruptcy

Now that we have the after-buzz of “Avatar” and everyone is hot for a ticket to that train your dragon movie; we are going in droves to the movies, even with the rise in 3-D ticket costs. If one has or is considering filing a Chapter 7 bankruptcy (or even a Chapter 13 bankruptcy or Chapter 11 bankruptcy), does that mean that there won’t be any money to go to the movies, or engage in any recreation at all? This San Jose Bankruptcy Attorney says “NO.”

As a local Bay Area Bankruptcy Attorney, I understand how important recreation is. Silicon Valley has lots of enjoyment opportunities and local resources. Certainly it is free to go to the beach or Balboa Park and, as locals, we should avail ourselves of these wonderful resources, but most recreation costs something. When one files a Chapter 7 liquidation, the forms specifically ask how much money you and your family spend on recreation (this is Schedule J). Most people think they should answer zero: that somehow just because they have filed for bankruptcy they are doing something wrong living a normal life. In my opinion, answering “zero” for recreation costs raises a red flag for the trustee that somehow the debtor is fudging their numbers. People go to the movies, they buy magazines, they fly kites at the beach, etc. Doing so is not unlawful nor unethical.

So if you are wondering if bankruptcy means an end to all fun, just say "no." Just be reasonable with your choices and Chapter 7 bankruptcy can be the relief you seek without the headache or worry you think it might be.

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

Let's face it, nowadays giving isn't just at the holidays anymore. And for everyone who gives, there is a person who gets. Sometimes, what we get is not what we want, however; and so, often as packed as they were during the shopping season, the stores are filled in late December and early January with people returning items. Giving and getting find their way into bankruptcy law, too, though a certain type of “giving” amidst a bankruptcy is not as warmly welcomed as holiday giving.

As a bankruptcy lawyer in the Bay Area, I am regularly asked about keeping one’s personal property during a Chapter 7 bankruptcy or Chapter 13 bankruptcy. Most of the time, debtors are able to keep all of their personal items, even during a liquidation. Sometimes, debtors ask about transferring property – or “giving items as a gift,” albeit temporarily – to family or friends. The intent is often to later ask for the property’s return. Not only is giving with the expectation of return not a true “gift” or a legal transfer of property, it is also possibly fraudulent under the bankruptcy laws and the subject of a forcible return of the property. What this means is that asking your cousin to hold your Stradivarius violin and handwritten letter from George to Martha Washington – or selling it for five dollars and a bag of chips – only to have it returned to you after the bankruptcy or buying it back for ten dollars a year later will make your cousin “an insider.”

Such an insider can have the property taken from them (and if it’s a rare Stradivarius or a personal letter from a Founding Father to his wife, you can bet the trustee will take it) and the property will then be added to your bankruptcy as a declared asset. This will likely mean the property will be sold. Not only that, because the FBI investigates issues of bankruptcy fraud, you (and maybe your cousin) could be charged with the crime of perjury (or worse).

Chapter 7 bankruptcy (and Chapter 13 bankruptcy) are available for debtors as a fresh start. Usually that means the debtors do not have assets of such great value; accordingly, your personal belongings are most likely safe. Consult a local bankruptcy attorney to discuss your own situation. In the meantime, return your unwanted Christmas gifts and be aware of the Chapter 7 bankruptcy and Chapter 13 bankruptcy laws related to gifts and property transfers.

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 Lawyer explains the hardship discharge with regard to Chapter 13 bankruptcy...

Debtors in San Jose who file for Chapter 13 bankruptcy may seek a hardship discharge if they cannot complete their repayment plan. Like most areas of the law, however, a three part test must be met. A debtor will only be granted a hardship discharge if these three conditions are met:

1) A debtor failed to complete the plan payments due to circumstances for which the debtor should not justly be held accountable
2) Based on what a debtor has already paid into the plan, a debtor’s unsecured creditors have received at least what they would have received if a debtor filed chapter 7 i.e. the value of the non exempt property.
3) Modification of the plan is not practical.

So if you live in the South Bay Area, and are currently on a Chapter 13 repayment plan but have run up against unforeseen circumstances, you may qualify for a hardship discharge. That’s all for today, San Jose.

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 mentions the Bobbit BK...

As we approach tax deadline, and debtors in San Jose begin to reanalyze their financial situation, I feel it necessary to once again share some famous Bankruptcies. I do this in hopes of calming the fears of those who know that bankruptcy is inevitable.

I’m sure the Bay Area remembers Mr. John Wayne Bobbitt. He gained worldwide fame after his wife Lorena Bobbitt sliced off his penis with a razor on June 23, 1993. The story gained even more notoriety when Doctors were later able to save Mr. Bobbitt’s penis by reattaching it after 12 hours of surgery! Still, that kind of surgery isn’t cheap.

Despite starring in his own adult film, Mr. Bobbitt could never make enough money to pay for his medical bills. Consequently, soon after his surgery Mr. Bobbitt filed for 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 comments on Chrysler's bankruptcy last year...

San Jose, is 2010 getting better than 2009? Let's hope so, for you and for Chrysler. The Detroit news reported in '09 that Chrysler, the smallest of Detroit's automakers, went through bankruptcy suffered the biggest decline of any major player in the U.S. market -- a 38 percent drop in car and truck sales. Consequently, the automaker had no new models to show at the 2009 Detroit auto show and its presence at the show was minimal.

Industry leaders worried, however, that such a decision would not be without risk. "It's a dangerous time to stay dark," Stephanie Brinley, senior manager of product analysis at Tustin, Calif., consulting firm AutoPacific Inc. had to say. "There are a lot of people watching and the longer they're quiet, the more speculation there is." So, if you live in San Jose or the greater Bay Area and are a diehard Mopar fan, you may habe been disappointed that Chrysler did not unveil any products that month.

It should be noted, however, that unlike Chrysler’s situation, many in San Jose who are considering filing bankruptcy do not need to worry about public opinion. Instead, debtor’s should realize that Bankruptcy really constitutes a fresh start!

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 regarding what you reveal when filing bankruptcy...

Debtors seeking protection under Chapter 7 and Chapter 13 inevitably want to protect family and friends from the consequences of their filing. However, all debtors are required to fully disclose all debts and assets in their bankruptcy petition. Furthermore, the bankruptcy court will review all payments made to family, friends, acquaintances, business partners, which fall under the category of “insiders” during the twelve months prior to filing. Any suspicious or “preferred payments” may be recoverable by the trustee.

Debtors should also be wary of trying to hide assets by transferring them to another party. Debtors are required to disclose all property that they have either sold or given away in the past 24 months prior to filing. Any transfers that the trustee believes was made for less than the fair market value could raise a red flag and possible dismissal of the bankruptcy proceeding. Any debtor who lies on their bankruptcy petition could also be charged with perjury, which can carry severe consequences including jail time.

As such, all debtors should be wary of transfers and the sale of property to family and friends immediately proceeding a bankruptcy. In life and in bankruptcy, honesty is the best policy to avoid case dismissal or worse potential consequences.

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 rise in Chapter 7 bankruptcies in particular...

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

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

If you have 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 reflects on the boom in bankruptcy

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 comments on spending trends...

The gap between the spending habits of the wealthy and the middle class is widening again. While all consumers had reigned in their spending over the past year, those in the upper tax brackets have started purchasing designer and luxury items again. Retailers such as Nordstrom and Bloomingdale’s have seen increased earnings reports up from last year.

Unfortunately, the middle class has not had a substantially significant improvement to return to high ticket item spending. Many consumers are still scrimping by and purchasing their basics at discounters such as Wal-Mart. The middle class is still in the “saving” group, while more affluent consumers are gradually moving back into the “spending” group.

However, based on current projections, it looks like all customers, spenders and savers alike, are still shopping for value and making more conservative decisions than they have in years past.

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 House of Reps vote against homeowner legislation...

When the U.S. House of Representatives voted against legislation that would have allowed homeowners to modify their loans on a principal residence in a bankruptcy case (Chapter 13), it was at least the second time this amendment came up for vote, and this time only 50 democrats voted in favor. Thus, the bankruptcy law remains unchanged on this issue. Loans against a principal residence cannot be modified in a bankruptcy case (except that in some circumstances–and only in some districts– a junior lien may be removed if and only if the value of the property is less than the amount owed to the 1st mortgage).

Of course, there were a number of variables associated with today’s vote that were not a factor in the earlier vote, particularly given that Members also were being asked to vote against the banks by supporting the creation of a Consumer Financial Protection Agency (CFPA).

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 makes not of Japan Airlines' bankruptcy...

Asia’s largest air carrier, Japan Airlines, has filed for Japan’s version of Chapter 11 bankruptcy protection after months of speculation as to its fate. It is anticipated that approximately 15,600 jobs will be cut and the board of directors to resign. A state-backed Enterprise Turnaround Initiative Corporation (ETIC) will be supervising the restructuring and plans to inject a large sum of money into the failed airline. Japan’s government has issued statements that flights will continue as normal during this time. Following news of the filing, the airline’s shares fell to its lowest price in history. The airline is estimated to owe debts of approximately $25 billion.
Many see the air carrier’s filing as proof that no company is too big or too secure to fail. The airline has undoubtedly fallen from grace as Japan’s once-proud flagship carrier. It was founded in 1951 and owned by the state at first. Following World War II, the airline expanded quickly and ultimately became privatized in 1987. In recent years, the global economic downturn as well as medical fears have all led to reduced business for the airline. At the time of the announcement, United States carrier, Delta Air Lines issued a statement of support for Japan Airlines. Delta is seeking to have the airline join its SkyTeam partnership as it looks to expand its Aisan networks. Delta and its partners have offered $1 billion, including $500 million in cash in order to lure the airline away from its Oneworld Alliance with American Airlines.

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 Lawyer Discusses Recent Bankruptcy Filing by Parking Co. of America Airports

Parking Co. of America Airports LLC filed for Chapter 11 bankruptcy protection due to declining business. The company is the largest United States operator of off-site airport parking lots in the country. The company listed assets of $94 million and liabilities of $233 million in its bankruptcy filing. PCAA Parent, the direct parent of Parking Co. of America Airports also filed for bankruptcy. The indirect owner, Macquarie Infrastructure Company LLC stated that it plans to sell the company to Bainbridge ZKD-Corinthian Holdings LLC for $111.5 million pending bankruptcy court approval. The company stated that revenue was severely decreased due to the significant decline in travel by businesses and consumers due to the economy as well as reduced flights being offered by airlines.

Parking Co. of America Airports employs more than 1,000 workers and runs 31 offsite airport parking facilities with more than 40,000 parking spaces under AviStar, FastTrack, and SkyPark names. Its operations center around 7 of the 10 busiest United States airports including Hartsfield-Jackson in Atlanta, O’Hare in Chicago, airports in Denver and San Francisco as well as all 3 major New York area airports. Court records show that the company plans to borrow $5 million from lenders including Dekabank Deutsche Girozentrale and ING Real Estate Finance (USA) in order to maintain operations during the pendency of the bankruptcy proceedings.

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 Luther Elliss bankruptcy...

Former Detroit Lions defensive lineman Luther Elliss is joining the ranks of those that must seek bankruptcy protection in recent times. Although Elliss was paid around $11.6 million from 2000-04, he has already lost one property to foreclosure and is being forced to walk away from another. In his bankruptcy filing, Elliss and his wife listed $1.38 million in assets and $4.4 million in liabilities. At the root of the problem were several failed business ventures as well as a high amount of mortgage debt. The final tipping point came when the U.S. Bank National Association obtained a $524,058.00 civil judgment against the couple tied to the property that was foreclosed upon.

Elliss is only one of several Detroit athletes who have recently run into financial problems. Other professional athletes claim that they are overwhelmed with investment pitches from friends and strangers alike. To make matters worse, many of these athletes are prone to overspending and ignoring financial advice. At the time of filing, Elliss was working for a Southfield Insurance company, netting $1,799.00 per month. Among the assets listed for the couple were a pension, annuity retirement plan, a watch and a car totaling approximately $550,000.00. Elliss is unsure how he will support his wife, five biological children and six adopted children going forward.

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 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!