San Jose Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney on Chapter 9

The first municipal bankruptcy legislation was enacted in 1934 during the Great Depression. Pub. L. No. 251, 48 Stat. 798 (1934). Although Congress took care to draft the legislation so as not to interfere with the sovereign powers of the states guaranteed by the Tenth Amendment to the Constitution, the Supreme Court held the 1934 Act unconstitutional as an improper interference with the sovereignty of the states. The law has been amended several times since 1937. In the more than 60 years since Congress established a federal mechanism for the resolution of municipal debts, there have been fewer than 500 municipal bankruptcy petitions filed. Although chapter 9 cases are rare, a filing by a large municipality can— like the 1994 filing by Orange County, California—involve many millions of dollars in municipal debt.

The purpose of chapter 9 is to provide a financially-distressed municipality protection from its creditors while it develops and negotiates a plan for adjusting its debts. Reorganization of the debts of a municipality is typically accomplished either by extending debt maturities, reducing the amount of principal or interest, or refinancing the debt by obtaining a new loan.
A municipal debtor receives a discharge in a chapter 9 case after: (1) confirmation of the plan; (2) deposit by the debtor of any consideration to be distributed under the plan with the disbursing agent appointed by the court; and (3) a determination by the court that securities deposited with the disbursing agent will constitute valid legal obligations of the debtor and that any provision made to pay or secure payment of such obligations is valid. 11 U.S.C. § 944(b). Thus, the discharge is conditioned not only upon confirmation, but also upon deposit of the consideration to be distributed under the plan and a court determination of the validity of securities to be issued.

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 this bankruptcy attorney question:

Would a Bankruptcy Litigation Attorney Do?

Technically, yes. However, a bankruptcy litigation attorney is primarily used for adversary proceedings. A bankruptcy litigation attorney will have some familiarity with the procedures in bankruptcy, but will likely be unfamiliar with how to accurately and completely prepare a bankruptcy petition. A traditional bankruptcy attorney will have familiarity with exemptions and how to apply them, what is and is not property of the bankruptcy estate, how to list certain creditors on certain schedules, and how to prepare a means test. A litigation bankruptcy attorney will not have daily familiarity with any of this and likely not a good candidate for preparing your petition.

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 talks about Debtors And Involuntary Bankruptcy

An involuntary bankruptcy is basically what it sounds like, involuntary - or not by voluntary means. A debtor and involuntary bankruptcy is analogous to a civil class action lawsuit by a majority of one’s creditors. When a debtor has less than twelve creditors, it takes only one creditor to request the court to initiate an involuntary bankruptcy. When a debtor has twelve or more creditors, it takes the cooperation of at least three creditors to set forth an involuntary bankruptcy. The involuntary bankruptcy petition is proposed to the court, and if accepted that petition is treated exactly the same as a voluntary petition. Nonprofit organizations and farmers are exempt from involuntary bankruptcy proceedings.

If you have 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 an item you need to complete once you file bankruptcy in San Jose:

After your bankruptcy case is filed, it is required that you take and complete an approved course in personal finances. This course, often referred to as a debtor education course, will take approximately two hours to complete.

Most times, you are able to take the financial counseling course online (with video), in-person at a designated credit counseling location, or over the telephone. Your bankruptcy attorney can give you a list of organizations that provide approved courses. Some bankruptcy attorney offices, such as Sagaria Law, have computer stations set up at their location so you can easily access this very necessary step to complete your bankruptcy.

It should be noted here that there is also another counseling course that is required prior to filing bankruptcy called a credit counseling course. It is also easily accessible if you are working with a capable bankruptcy firm.

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 lets bankruptcy filers know if they have to go to court....

In most bankruptcy cases, you only have to go to a proceeding called the “meeting of creditors” to meet with the bankruptcy trustee and any creditor who chooses to come. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation.

Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing. If you need to go to court, you will receive notice of the court date and time from the court and/or from your 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 lawyer Bankruptcy & Consumer Debt 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 consumer debt counseling course. The BAPCA also created a mandatory post-filing, pre-discharge consumer debt education course.

The pre-filing consumer debt counseling course is taken with an approved credit counseling organization and includes an overall evaluation of a debtor’s current monthly income and expenditures. The consumer debt counseling course attempts to help the individual filing for bankruptcy create a monthly budget and cut out excess spending. The consumer debt counseling 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 how to rebuild your credit after bankruptcy:

While a bankruptcy action will be reported on your credit report for up to 10 ears, you can start rebuilding your credit immediately. One of the most important factors in your credit is your debt-to-income ratio. If you have more outstanding debt than you have the ability to pay, your credit is probably not very good. Filing for bankruptcy will eliminate most of your debts and will reduce your debt-to-income ratio – likely to improve your credit in the long run.

Once you have filed for bankruptcy, you will not be able to file again for 8 years. This is why there are many lenders that will actively solicit business from people who have filed for bankruptcy. To rebuild your credit, you may need to obtain a credit card. You can demonstrate to lenders that you are determined to slowly rebuild your credit by managing your money and credit card wisely. Many people will be able to finance for cars as well as homes within a year or two after discharge, although the interest rate may be higher than average.

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 a popular consumer question with regarding to filing bankruptcy: What is a secured debt?

Answer: Secured debt is any debt that is “secured” by a lien on some collateral. Generally speaking secured debts usually include a debtor’s home and car. In some rare cases credit cards have a purchase money clause that grants the lender a right to repossess any item purchased with the card. This would be also be a secured debt.

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 lists Six Tips to Avoid Bankruptcy Fraud

There are several ways to avoid bankruptcy fraud, but here are six of the major tips to avoid bankruptcy fraud. First, be open and candid about your assets. California has one of the most diverse and debtor-friendly exemption lists in the United States. By disclosing all of your assets, the trustee has no reason from the get-go to assume bankruptcy fraud. A second way to avoid bankruptcy fraud is to not file for bankruptcy in more than one state. If you must file in more than one state, be sure to follow tip number one.

A third way to avoid bankruptcy fraud is to not attempt to bribe the trustee with money or other valuables in order to hide assets that might not be exempt. A fourth tip on avoiding bankruptcy fraud is to completely fill out the bankruptcy petition and not leave anything blank or ambiguous. Hiring an attorney is the easiest way to ensure that all information is accurate and in the appropriate schedules.

A fifth way to avoid bankruptcy fraud is to not use an alias or “aka” and file for bankruptcy multiple times. There is a calendar limit to how often an individual can file for bankruptcy. Lastly, a great way to avoid bankruptcy fraud is to not illegally make yourself insolvent, meaning transferring all your assets to offshore accounts, family members, etc. The trustees are governmental employees and have their ways to find out information that you would not have otherwise thought they could obtain.

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 lets you kow who the Bankruptcy Judge for San Jose, CA is...

The Northern District of California, San Jose Division has nine bankruptcy judges. Those bankruptcy judges include: Chief Judge Newsome, Judge Carlson, Judge Efremsky, Judge Jaroslovsky, Judge Jellen, Judge Montali, Judge Novak, Judge Tchaikovsky, and Judge Weissbrodt. The bankruptcy judges’ website is http://www.canb.uscourts.gov/judges/judges-menu. On the website, you can view the bankruptcy judges’ brief biography, you can view the bankruptcy judges’ court calendar, and you can find the contact information for each of the bankruptcy judges. You can view some of the bankruptcy judges’ prior decisions and the procedures for each chamber.

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 lets you know where you can find the necessary bankruptcy forms in San Jose, CA...

The United States Bankruptcy Court in San Jose is in the jurisdiction of the Northern District of California, San Jose Division. The bankruptcy forms for San Jose as a creditor can be found on the Court’s website by clicking here. As a debtor, bankruptcy forms can be found by clicking here. This is not to say that this is an all-inclusive list of the bankruptcy petition forms, nor does it guarantee the total amount and/or order of the bankruptcy forms to be submitted. It is highly advisable to consult with an attorney before attempting to complete and file any bankruptcy forms.

There is also software on the open market which contain bankruptcy forms for San Jose. This software is expensive and not realistic for an individual to purchase. Your best bet for obtaining the proper bankruptcy forms is to consult with an experienced San Jose 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 lawyer breaks down the cost of filing bankrupty in San Jose...

Years of using credit cards to the max - $30,000. Northern District of California chapter 7 bankruptcy filing fee - $299. Knowing that your mistakes and credit card debt are wiped out – priceless. There are two ways of going about filing for bankruptcy, you can either go at it alone or hire an attorney. Regardless of which path you take, the San Jose court’s filing fee for a chapter 7 bankruptcy is $299, a chapter 13 bankruptcy is $274, and a chapter 11 bankruptcy is $1,039. These fees apply to all debtors.

While it does seem odd to be filing for bankruptcy and at the same time hiring an attorney, bankruptcy law can be very confusing at times. One of the largest mistakes made by individuals representing themselves is the incorrect use of exemptions. So when you take into consideration the bankruptcy cost of hiring an attorney to assist your preparation of your petition, imagine losing your entire 401(k) and your house, which all can be exempted, because you chose the wrong exemption or listed it in the wrong schedules.

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 tells you what you can do to remove debt?

There are several options when it comes to removing debt. The first and most obvious is to pay off your creditors timely in order to remove debt. This keeps your credit score good and the creditors do not harass you. When paying your monthly credit card and loan bills, you want to pay more than the minimum payment on those accounts in order to remove debt. When only paying the minimum payment, the principal balance is nominally reduced while the interest is primarily paid.

You can also attempt to settle your credit card debt by offering one or two lump sum payments for pennies on the dollar. This drastically removes debt but can leave a nasty mark on your credit report. It also makes lenders less likely to grant credit.

Lastly, you can file bankruptcy to remove debt. In some cases, entire second mortgages can be removed. This can remove debt of over $100,000! Credit and debt are like oil and water, they do not mix yet are so often found together.

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 addresses the question: What is Secured Debt?

There are two typical kinds of debt that a person can acquire, secured debt and unsecured debt. Unsecured debt is debt that is not secured by any piece of property. Some examples of unsecured debts include credit card debts, medical debt, and personal loans.

Secured debt is debt that is secured, or guaranteed, by a piece of property (either real or personal). Some common types of secured debt would include the purchase of a home or financing of a car. The main advantage of a secured debt to the creditor is that should the person who took out the loan default on their payments, the secured creditor may attempt to repossess or foreclose upon the piece of property that secured the debt. They can either sell the property or decide to keep it as their own. If the value of the property does not exceed that of the remaining balance of the loan, the creditor retains what is known as a deficiency debt. This is the difference between the loan balance and the value of the property taken. In most instances, secured debt is not dischargeable in bankruptcy, but the deficiency may 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!

A San Jose bankruptcy attorney answers What is Unsecured Debt?

Unsecured debt is the most common debts in America. Unsecured debt is debt which is not guaranteed by any personal or real property. While the greater dollar value of debt is secured debt, the most common kind of debt that causes problems to Americans’ is unsecured debt. Unsecured debt mainly consists of credit card and medical debt. It is extremely difficult for an unsecured creditor to collect on the balance owed since no piece of property guarantees that debt. Should a debtor default on a loan that is secured by property, the creditor simply gains control of the property that secured the loan and has the option to either sell that property or retain it for themselves.

Often times it is unsecured debt that leads to wage garnishments or bank levies. Unsecured debt is known as “bad debt.” It is debt that an individual accrues not out of necessity like a home or car loan. Unsecured debt usually carries a high interest rate and often times annual fees. These two aspects make unsecured debt very dangerous. However, it is unsecured debt that is normally discharged during a Chapter 7 or Chapter 13 bankruptcy. Most times, credit card and medical debt is dischargeable in bankruptcy and is why many people file for bankruptcy 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 addresses what many ask: How do I keep my car in bankruptcy?

One of the biggest fears about filing bankruptcy is losing either your house or your car. So how does one keep their car in bankruptcy? If you own your car outright, meaning there is no loan attached to your car; California offers a $3,350 automobile exemption. If your automobile is worth more than $3,350 there is a wildcard exemption which can be used to cover the rest of the value of the car. Thus, you will not lose your car in bankruptcy.

If there is a loan attached to your car, the first and most important thing to be sure of is to be up-to-date on your car payments. If you owe arrears on your car in bankruptcy, the lender may attempt to liquidate the car in order to satisfy its loan. You should also continue to make payments on your car in bankruptcy. This shows good faith to the lender and makes it more likely to simply continue the prearranged payment schedule.

To keep your car in bankruptcy, you may be forced to sign and file a reaffirmation agreement. A reaffirmation agreement is a document which retains the personal liability of the debtor to the car loan following the discharge of the bankruptcy. As explained above, there are several options in which to keep your car in 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 explains how bankrupty affects a co-signor...

Often times an individual will either not have established enough credit history or just does not have the credit score to obtain a loan with an appropriate annual percentage rate (“APR”). When this occurs, often times they will recruit their spouse or family to co-sign on the loan. This places the co-signor on the line for the debt should the signor fail to make timely payments.

So what happens to the co-signor when the original debtor files for bankruptcy? Schedule H of the bankruptcy petition is where all co-signors on loans should be listed. These individuals receive notice of the filing and are given an opportunity to file a motion with the court in order to either reaffirm the debt, or likely force the debtor to surrender the secured object and distinguish the deficiency upon discharge. Filing for bankruptcy does not automatically terminate the co-signors liability, however it does place an automatic stay on the creditor from seeking payment from the co-signor. This third party stay remains in effect as long as the bankruptcy stay remains.

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

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

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

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

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

A San Jose bankruptcy attorney explains why Foreclosure Should Be a ‘Fore’ Letter Word

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

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

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

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

A San Jose bankruptcy attorney comments on taxes and bankruptcy...

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

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

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

A San Jose bankruptcy attorney provides insight on proofs of claim

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

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

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

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

San Jose Bankruptcy Attorney reveals information on bonus earnings

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

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

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

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

San Jose Bankruptcy Attorney Discusses Payments During a Chapter 7 Bankruptcy:

Debtors are often concerned that filing for a Chapter 7 bankruptcy automatically means that they will lose their car and house. While a Chapter 7 filing is technically a “liquidation” proceeding, all is not lost. Debtors are entitled to keep their cars and homes as long as there is not significant equity in any one item. Most people do not lost their home or their car in a Chapter 7 proceeding because of state and/or federal exemptions. For example, in California, single people are entitled to exempt $50,000 of equity in their home and $75,000 of equity for married couples.

One caveat to being able to keep cars and homes is that the debtor must be able to maintain their current payments. If a debtor files for Chapter 7 bankruptcy and he/she is not current on their car payment then the car will likely be repossessed. If they are not current on their home, then the home will go into foreclosure. As a result, in order to keep a car or a home in a Chapter 7 proceeding, the debtor must be current on his/her payments at the time of filing and continue to remain current on those loans during the pendency of the bankruptcy.

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

San Jose Bankruptcy Attorney discusses the Increase in Chapter 7 Filings

Chapter 7 bankruptcy filings are up higher than ever in Silicon Valley. An rise this large has not been seen in years. Most attorneys in the San Jose area alone have seen their bankruptcy practices double, if not triple, over the past year. The increase in Chapter 7 filings has been driven by the increase in unemployment and the housing market crash. With the jobless rate on the rise and none of the Silicon Valley giants hiring, bankruptcy is often the only recourse. Chapter 7 filings have hit executives, teachers, and blue collar workers alike. Once a debtor falls into major debt it is next to impossible to get caught up in this economic climate. While most people have reserves to sustain themselves for a period of time, eventually those reserves run out and there is nowhere to turn.

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

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

San Jose Bankruptcy Attorney discusses one economic impact of the “Swine flu”

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

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

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

San Jose Bankruptcy Attorney discusses the irony of a credit card company filing for bankruptcy.

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

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

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

San Jose Bankruptcy Attorney discusses Lenders Motivation for Foreclosure

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

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

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

San Jose Bankruptcy Attorney discusses National Job Loss Figures

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

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

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

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

San Jose Bankruptcy Attorney Discusses California’s Debt:

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

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

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

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

San Jose Bankruptcy Attorney discusses 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 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

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!

San Jose bankruptcy lawyer makes comment on Chapter 13 bankruptcy...

Debtors who file Chapter 13 should remember that they will be on a payment plan for five years. While this time frame may sound daunting, debtors should realize five years or 60 payments is the same time frame used when financing an automobile. Still, despite a debtor’s best efforts to make regular payments some may not be able to complete their plan. Fear not.

San Jose and the South Bay: listen up! If you can’t complete your plan you basically have three options: dismiss your case, convert to a chapter 7, or request a hardship discharge. Debtor’s in the Bay Area should understand that a significant percentage of Chapter 13 debtors find themselves in this position. Consequently it’s best to understand the consequences of these three choices ahead of time so that debtors may properly prepare if they have to make such a decision. Each option should be dicussed in more detail with an experienced bankruptcy attorney because knowledge is power.

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!

San Jose Bankruptcy Attorney says be careful what you post on Facebook

Facebook has become an international phenomenon, boasting millions of users posting new information everyday. However, debtors contemplating bankruptcy or those who have already filed should be wary of how much information they disclose on social networking sites. Even if debtor’s limit their profiles to “Friends Only” status, they are not necessarily secure from prying eyes. It is best for all consumers, in any legal proceeding, bankruptcy included, to maintain a level of anonymity on the Internet. Posts regarding lavish trips or extravagant purchases can easily be disclosed to bankruptcy trustees by ex-spouses, ex-significant others, or nosey creditors.

It is best to error on the side of caution and limit any posts on social networking sites until all legal proceedings are complete. Information is power in any legal setting and debtors have to assume that any information they post about their spending habits will be used against them. Debtors should protect their private life and personal information by remaining anonymous and flying below their creditors and bankruptcy trustees’ radar.

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 states in most financial challenge

California residents are not surprised that given the current economic downturn that it is one of the nation’s top states in financial trouble. The entire west coast has been significantly impacted by foreclosures and the housing market crash, including Oregon, Arizona, and Nevada.

A recent study which placed California in the top 10 states in financial crisis based its conclusion on foreclosure rates, loss of state revenue, poor money management practices, relative size of budget gaps, and unemployment rates.

The San Jose economy still continues to struggle with increased unemployment and tanking housing values. Some areas in the Silicon Valley are slowly starting to recover, but the impact of the economic downturn is still devastating. With unemployment on the rise, many once prospering San Jose and Silicon Valley residents are having to turn to various programs for debt relief including bankruptcy and 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 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 clarifies more on HAMP...

If the net present value (“npv”) test shows that the lender would receive at least as much under the calculated modification as if the property were foreclosed, the lender is required to offer the modification. It is not optional. If the “npv” test does not favor the modification the lender may, in its discretion, offer the modification to the borrower.

If the “npv” does not favor the modification, but the lender wishes to offer it, the interest bearing balance must at least equal the current value of the property.

If the “npv” favors the modification, the lender is required to forbear principal up to the greater of 30% of the unpaid principal balance or the amount that would provide for amortization of the current value of the property, to the extent necessary to lower the “tmp” target first mortgage montly payment to 31% of the borrower’s gross income. The lender may in its discretion forbear more principal.

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!