San Diego Bankruptcy Attorney Blog

A San Diego Bankruptcy Attorney offers a Bankruptcy Law Guide to Different Chapters

This is a bankruptcy law guide to the six “types” of bankruptcy codified within Title 11 of the United States Code, although only the three primary ones are discussed below. This bankruptcy law guide nonetheless lists, for reference, the following: Chapter 9 deals with insolvency of local municipalities; Chapter 12 is like a Chapter 13 (see below) but for fishermen and farmers; and Chapter 15 deals with international debt issues (adopting the United Nations’ Model Law on Cross Border Insolvency).

Chapter 7 — by far the most common of bankruptcies filed. As discussed in this bankruptcy law guide, Chapter 7 is considered a “liquidation” of assets. This means that the trustee assigned to the case by the United States Bankruptcy Court has the power to seize all of a person’s assets to pay the creditors, each receiving less than the full amount originally owed but the same proportional percentage of what is liquidated. A Means Test, added in 2005, is required as a method to calculate whether Chapter 7 is available to the debtor. If so, the Chapter 7 will yield a discharge of most debts, making the debtor no longer responsible for them. Refer to other discussions within this bankruptcy law guide for a discussion of what types of debts survive bankruptcy. Exemptions, which vary by state, provide for the protection of assets and avoidance of the power of the trustee to liquidate certain assets. In the vast majority of cases, no assets of the debtor’s are ever seized by the trustee.

Chapter 11 – available to both individuals and businesses, but overwhelmingly used by the latter. A Chapter 11 is referred to as a “reorganization.” In effect, once a Chapter 11 petition is filed, the debtor is given time to negotiate with its creditors and business partners to rehabilitate itself. This bankruptcy law guide details how debts may be restructured or forgiven; contracts or leases may be renegotiated; assets may be sold off. Anything is available to the business during its post-filing negotiation period. The creditors have to agree to the plan of restructuring, however. Once the process is complete and all (or enough) parties have agreed to accept the debtor’s plan, the debtor “emerges” from bankruptcy, presumptively leaner and more economically viable.

Chapter 13 – the “wage earner’s plan.” Chapter 13 is always voluntary. That is, Chapters 7 and 11 may be compelled by a creditor even over the debtor’s objection; Chapter 13 is unlike that and available to any debtor anytime. A detailed bankruptcy law guide should be consulted to see exactly how the payments during the plan will be distributed. In essence, the Chapter 13 is a repayment period of up to five years wherein the debtor pays her secured debt in full and her unsecured debt in accordance with her disposable income, as calculated. Most often, a discharge of the remaining unsecured debt is granted at the completion of the payment period.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney
: San Diego Bankruptcy Attorney discusses Chapter 11 and Business

While bankruptcy is somewhat (and inappropriately) stigmatized, some take the view that bankruptcy is actually a good thing. Leaving aside the argument as it relates to consumer-level, individual bankruptcy, Chapter 11 and business actually go hand in hand…and should. Take, for instance, John Doerr’s statement that “it is okay to fail, and, in fact, it might even be important that you failed before on someone else’s money.” Mr. Doerr is a member of President Obama’s Economic Recovery Advisory Board and on Forbes’ “Midas List.” What Mr. Doerr is saying is that failure is part of growth (i.e., Chapter 11 and business are part and parcel of economic activity). This sentiment is found popularly in Thomas L. Friedman’s book The Lexus And The Olive Tree. Since our markets are free and open, competition is part of it. Indeed, competition is the well-source of capitalism. Thus, by definition, not all businesses can succeed. This creates the dynamic where failure is both inevitable but also good (because one man’s failure is another man’s success; and competition leads to innovation and cheaper prices). Chapter 11 and business are therefore intrinsically linked. While you would like to see your venture capital dollar bear a behemoth corporation, so does the next guy. For the most part, though, venture capitalists (which include small business start-ups and mom-and-pop shops capitalized from loans) factor in this inherent risk. This is why the payoff can be so handsome and rewarding. Chapter 11 and business are good: they are the cousins to competition and, accordingly, the lifeblood of free enterprise.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney Discusses Reorganization and Business Formation

People often ask about the relationship between reorganization and business formation. The two (reorganization and business formation) can be thought of as individual components but, looking at them in solitary vacuum, would be a mistake. Thus, when approaching reorganization and formation the first query must be about what type of recent reorganization has occurred. If a Chapter 11 reorganization has been successfully through bankruptcy, the company should be leaner and more able to generate a profit. Thus, the business formation aspect is that which addends the ability of the company to grow. Reorganization and business formation can also relate to a personal re-evaluation of debts, or possibly a Chapter 13 or Chapter 7. Examining one’s finances and how that might open the door to business formation deals with budget, the purchase of inventory, the ability to generate and use credit, and other typical business considerations. Reorganization and business formation go hand in hand because they each consider expenditures and how to grow.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy lawyer discusses Debtor’s Reorganization

Debtors’ reorganization is typically in the realm of Chapter 11 bankruptcies. Indeed, debtor’s reorganization is what a Chapter 11 is: the renegotiation of contracts, the liquidation of assets or inventory, the reformulation of a business model, etc. with the goal in mind of emerging from the bankruptcy more able to conduct profitable business. A debtor’s reorganization, though less formally, is also something worth considering in either a Chapter 7 or a Chapter 13. Constructing a budget or the elimination of unneeded luxuries are forms of debtor’s reorganization that anyone granted a discharge or part of a Chapter 13 repayment plan would be wise to consider. In truth, this type of debtor’s reorganization is the subject of the second of the two courses that must be taken before a discharge is granted (financial management).

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney Discusses Chapter 11 and Business

Chapter 11 and Business are governed by 11 USC 1100 (and the statutes which follow). A Chapter 11 may be filed for personal debt if one does not qualify for Chapter 7 or if the debts at issue exceed the limits for Chapter 13s. Often Chapter 11 and business, as they relate to individuals, are found when an individual (or family) owns real estate as an investment. By and large, though, Chapter 11 and business is for corporations (or LLCs and the like). When Chapter 11 and business mix, it is usually for the reorganization of the business model or the restricting of debt owed to creditors (such as a change of terms akin to a loan modification, for example). Chapter 11 and business is serious; the creditors will need to approve a plan of reorganization before the business can emerge from the bankruptcy, presumably to be profitable thereafter.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney answers the question: Which Bankruptcy Law Chapter is Right for Me?

Determining which bankruptcy law chapter best suits you is often quickly discovered through a brief chat with an attorney. Sometimes, figuring out which bankruptcy law chapter is the best way to go can be a bit more challenging, however. In either situation, consultation with an attorney should yield the correct answer. Imagine you have a typical case where you are married, rent an apartment, make less than $65,000 per year, have very few assets, and have high credit card debt. In this instance, the best bankruptcy law chapter for you is probably Chapter 7. But consider that if you owned a home instead and were a few months behind on your mortgage payments, the bankruptcy law chapter that might be best for you is now not so clear. Both Chapter 7 and Chapter 13 make sense. This is why consultation with an attorney is vital. For straightforward cases, the internet is a reasonable place to start asking about the best bankruptcy law chapter for you, but, when the choice is not clear, an analysis how Chapter 7 and Chapter 13 each apply to your situation is absolutely vital. To make an incorrect election about which bankruptcy law chapter to file under can cost you money, time, and possibly even successful resolution to your case.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney answers How much does it cost to file Bankruptcy in San Diego?

To the question “How much does it cost to file bankruptcy in San Diego?,” here is a cheesy, though totally correct answer: it will cost you a lot more to NOT file bankruptcy than to file bankruptcy. That is certainly a horrible answer – so there are specific answers below – but the facts are clear: if you wait to file bankruptcy, you may subject yourself to lawsuits, foreclosures, garnishments, and bank account levies. It would be difficult to assign a value to a lost home or the impact of a wage garnishment. Therefore, the silly answer above is right. Failing to file bankruptcy when the time is right, or simply waiting to file bankruptcy by mere procrastination, can be very costly. In terms of actual dollars, though, the fee charged by the United States’ Bankruptcy Courts (see www.uscourts.gov) is $299 for a Chapter 7 and $274 for a Chapter 13.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy lawyer says What are bankruptcy exemptions?

Bankruptcy exemptions are those things which are not included in the “bankruptcy estate.” What this means is this. When you file a typical Chapter 7, say, that filing creates a new entity; this is essentially a new, though phantom, “person” or entity. This new entity is called a “bankruptcy estate.” When you file for Chapter 7 – a.k.a. “liquidation” – all of your assets are put into this bankruptcy estate. The trustee who manages the case for the court is mandated, by law, to sell everything within this bankruptcy estate and split the proceeds amongst your creditors (hence, the term “liquidation”). However, bankruptcy exemptions allow you keep from inclusion into the bankruptcy estate various things. Bankruptcy exemptions are laws, or codes, which you apply to whatever property you want to keep out of the bankruptcy estate, and therefore keep from being sold. In truth, most people are able to use the bankruptcy exemptions to exempt 100% of everything they own. This means they file for bankruptcy, discharge all their debt, yet still keep everything that is theirs. The bankruptcy exemptions are listed within the California Code of Civil Procedure at sections 703 and 704. You should speak with a lawyer to figure out how the bankruptcy exemptions apply to you and your property, specifically.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy lawyer answers the question: will I lose everything in bankruptcy?

Today’s blog specifically answers the question: will I lose everything in bankruptcy? The point of yesterday’s blog was to highlight the potentially scary aspect of having everything you own be put into a “bankruptcy estate” subject to sale (liquidation) by the trustee for the benefits of the creditors. Indeed, the thought is scary and the trustee is empowered to sell your assets when you file bankruptcy. Here’s the part that should offer you great comfort: while everything in the bankruptcy estate is subject to sale, many things are exempt from inclusion in the bankruptcy estate. What that means is, any non-exempt asset will be sold by the trustee, but more than 9 out of 10 debtors have assets which are fully exempted (i.e., not put in the bankruptcy estate). For instance, if you own a home, even if that home has $50,000 in equity, the trustee cannot sell it. In other situation, you could keep up to $20,000 in jewelry, cars, silverware, stereo equipment, art, stamps, etc. and the trustee cannot sell it.

California actually has two methods that protect the debtor. On the one hand, equity in a home can be protected (this is called the homestead). On the other hand, there is a wildcard. This wildcard is applicable to any property, even cash. Consider that if you are paying off your car, you might still owe more than the car is worth. In such a situation, it is said that your car is upside-down. Since it has no equity, it does not even need to be listed as an exempted asset. At that point, it’s really the bank that owns the car. So the trustee cannot take your vehicle. If you want to give it back to the bank via a voluntary repossession, the bankruptcy filing is a good avenue to do so and to get a fresh start independent of that expensive car loan. So, if you’re asking “will I lose everything in bankruptcy?” the answer is probably no. Will I lose everything in bankruptcy if I have, for instance, assets in excess of the wildcard? Yes. You will lose (that is, the trustee will take and sell in the liquidation) anything that’s not exempted or excluded as an asset (like an upside-down car), but you can never be left with nothing. California has a great exemption schema, meaning California is a great place to file for bankruptcy.

If you ask yourself “will I lose everything in bankruptcy” and that is what keeps you from considering bankruptcy, don’t. You should consult an attorney who will discuss with you the protection of your assets from inclusion within the bankruptcy estate. “Will I lose everything in bankruptcy?” is a common question…one that lawyers should be able to answer quite readily for you.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy lawyer gives 5 Tips for a Bankruptcy Reorganization Plan

A bankruptcy reorganization plan deals exclusively with Chapter 11, although, in a broad sense, bankruptcy itself is a reorganization of one’s finances and, therefore, any bankruptcy filed – be it a Chapter 7, Chapter 11, or Chapter 13 – should, in effect, be the beginning of and implementation of an individual bankruptcy reorganization plan. Nonetheless, Five tips for a bankruptcy reorganization plan as it relates to a Chapter are:

1. Don’t overextend – just because the bankruptcy is alleviating many of your concerns, take a conservative approach regarding what is realistically feasible after the bankruptcy. In other words, take advantage of the freedom the bankruptcy affords you and get a real fresh start, not one where you are working uphill again right after the bankruptcy concludes.

2. Be patient – the process of reorganizing and negotiating with creditors can take a long time. It is quite common to get extensions from the court and work thing out over the long haul. The benefits of the bankruptcy sure make it seem like something you’ve got to have immediately, but patience is a real key.

3. Do it right – like any form of bankruptcy, there are certain disclosures and information that must be provided to the court. Hiding anything is perjury (that is, illegal and criminal) and often will get you in trouble anyway. Having experienced attorneys on your side is also important because that experience can lead to real, tangible benefits. As you begin your bankruptcy reorganization plan, it seems logical that choosing an experienced attorney is important now, more than ever.

4. Envision life after the bankruptcy – if your Chapter 11 bankruptcy reorganization plan relates to real estate, it is vital to keep in mind that you yourself might be living in the property you save. Making choices not just related to economics but to real life, as it relates to you – the debtor – can be just as important as the economics themselves.

5. Reorganize!!! – it is, after all, a bankruptcy reorganization plan. When the plan is in its development stage, get creative. You need not employ the same strategies that got you where you are; think outside the box. Reorganize creatively and from the ground up. Take advantage of the opportunity provided to you via the bankruptcy reorganization plan itself.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy attorney explains the difference between Individual Chapter 11 and Company Chapter 11 bankruptcy filings

Many people wonder what options they might have if a Chapter 7 or Chapter 13 bankruptcy is not available to them (i.e., cannot pass the means test or propose a feasible repayment plan). The answer may be an individual chapter 11. While Chapter 11 is commonly considered a “company chapter 11” or the bankruptcy realm exclusively for businesses, an individual chapter 11 is, in fact, a viable option for individual debtors. The main difference between individual chapter 11 and company chapter 11 relates to case management. In a bigger, typical company chapter 11, the creditors form a committee to examine the debtor’s finances to discover a feasible reorganization plan. In a smaller individual chapter 11, there is often not a trustee appointed and there may not be a creditor committee formed.

Another way the individual chapter 11 differentiates from the company chapter 11 is that a “single asset real estate case” is available to the individual person where a non-residential property generates the bulk of the individual’s income. A real estate holding corporation, by contrast, could not invoke the special provisions of the “single asset real estate case” because, by definition, they would need a company chapter 11 (for they are not an individual).

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney veers into the liquidation realm of bankruptcy...

What is Liquidation? Will I Lose Everything In Bankruptcy? Part 1 of 2

A Chapter 7 bankruptcy is called “liquidation.” Similarly, Chapter 13 is called a “wage earner’s plan” and Chapter 11 is called a “reorganization.” There is a big difference, however, between the definition of the term “liquidation” and the real life experience of liquidation, as it relates to bankruptcy. The following discussion should shed some light.

When a debtor files for a Chapter 7 bankruptcy – by far the most common type of bankruptcy – the filing creates a brand new taxable identity. So, when Thomas Jefferson’s Chapter 7 petition is filed with the court, the “Thomas Jefferson Bankruptcy Estate” is created, at least on paper. In this “Thomas Jefferson Bankruptcy Estate” goes everything Thomas Jefferson owns, including things he might own in the future, like payments owed to him for writing the Declaration of Independent or his right to sue John Hancock for breach of contract, say. Thomas Jefferson doesn’t have to take any actions like turning over property or changing title to his property, though; again, the creation of the bankruptcy estate is just on paper. Once this bankruptcy estate is created, the trustee (the person who oversees the case for the court) is empowered to sell all the items and pay off Thomas Jefferson’s creditors (proportionally to the total debt he owes all of his creditors combined and by paying them only up to the amount received from the sale). This is the liquidation. Liquidation is, by definition, the conversion of property into cash. After the liquidation and payment by the trustee of the sale proceeds from the liquidation sale, the remaining debt is discharged (except where prohibited by law, such as if a debt is from a lawsuit related to an injury if you were driving under the influence or if a debt was from a fraudulent act).

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney provides a short FAQ on Chapter 11:

Question #1: What is Chapter 11?
Answer #1: Chapter 11 refers to the eleventh chapter of the eleventh volume of the United States Code (11 USC § 1100 et seq.). It is the law which controls business reorganization under the jurisdiction of the bankruptcy courts.

Question #2: Who can file for a Chapter 11?
Answer #2: For the most part, Chapter 11 is utilized by businesses. But, officially, it is available to anyone. If, for instance, you do not qualify for a Chapter 7 because your income is too high (in other words, you fail the means test) or if you are prevented from filing for a Chapter 13 because you own secured property in excess of $1,081,000 or owe unsecured debts in excess of $360,000, a Chapter 11 is the only real option for you.

Question #3: What happens when a Chapter 11 is filed?
Answer #3: When a Chapter 11 is filed (for sake of understanding, let’s assume the filing party is a business), the debtor is given 120 days to construct a plan of reorganization. This plan often includes the restructuring of debt but can really do anything. A group of the largest creditors form a voting bloc who decide whether the plan sounds good. If not, any creditor is free to submit a plan of their own after the 120 day period expires. At some point, a Plan of Reorganization is formulated which receives court approval. Once implementation begins, the debtor emerges from Chapter 11.

Question #4: Does the operation of the business continue during the bankruptcy?
Answer #4: Yes. Since cessation of business operations would probably mean more trouble than keeping the status quo going, the management is considered a “debtor-in-possession” and operates as a trustee would, generally with court oversight.

Question #5: Do different procedures or rules apply for small businesses in Chapter 11?
Answer #5: Yes. Where a business has debt less than $2 million, the business is treated uniquely by the bankruptcy court. For example, the court procedures are expedited, a separate hearing to approve the disclosure statement may not be required, and a voting bloc of creditors can be avoided.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy lawyer discusses doing business after Ch. 11 bankruptcy...

How is it that companies like Texaco and General Motors file for bankruptcy yet continue to do business after ch. 11?? Isn’t bankruptcy the end of doing business, when the company says, “we just cannot continue?” The answer to the question 'How Does a Company continue to do business after a ch. 11?" depends the details of their Chapter 11 filing.

When a business files for bankruptcy, it generally files for Chapter 11 and may or may not plan to continue operating as a business after ch. 11. Filing Chapter 11 does NOT mean an end of business. It is neither a liquidation nor a repayment plan. Instead, Chapter 11 is merely a company asking for time to get itself right with plans to do business after ch. 11.

When a company files, it is given at least 120 days to negotiate with its lenders, vendors, or affiliates, during which period no lawsuits nor collection can take place. Companies in Chapter 11, especially those that wish to continue to do business after ch. 11, regularly ask that their debt owed to their lenders be forgiven or restructured. Anything, frankly, is possible as the entire bankruptcy is the subject of negotiations between affected parties. The court’s involvement is, therefore, minimal.

Here’s an illustration: there’s a company called Trump Atlantic City Associates (it’s a company just like any other, and, while controlled by Donald Trump, is not intermixed with Donald Trump’s own personal finances). This company is having trouble making money in the Atlantic City casino market. It files for Chapter 11 bankruptcy. As discussed, this does not mean it must close its doors, discontinue business after ch.11 and sell its slot machines to the highest bidder, but rather it presses pause and takes a breather. It convenes discussion with its various business associates and it is determined that the best course of action to protect everyone (i.e., its owners, lenders, lienholders, vendors, employees, etc.) is to receive a cash infusion to update itself so as to emerge more competitive in the market. During this restructuring (or at least in the time immediately after the Chapter 11 bankruptcy protection paperwork is filed), no one can sue the company, letting it take a breath and emerge renewed. Similarly, Six Flags theme parks recently filed for Chapter 11 bankruptcy and restructured its debt, then continued doing business after ch. 11. This is clearly better than continuing to operate in the red as it had been doing. Post-bankruptcy, a company is (at least in theory) leaner, meaner, and better. So, when you hear a big company is “filing for bankruptcy,” consider that they are just asking for a moment to examine themselves and develop a new business model…while under the protection of the courts from having adverse action taken against it by a business associate.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney explains how many bankruptcy law chapters there are...

Question #1: What Are Bankruptcy Law Chapters?
Answer #1: Bankruptcy Law Chapters are just like the chapters you might find in any book. The book in this particular case is the 11th volume of the United States Code (a.k.a., the place where the federal laws are written). This is called Title 11. The Bankruptcy Law Chapter numbers are unusual, however. There are nine actual bankruptcy law chapters but they are numbered 1, 3, 5, 7, 9, 11, 12, 13, and 15. A reference to the seventh bankruptcy law chapter might look like this: 11 USC § 700.

Question #2: How are the laws written within these bankruptcy law chapters?
Answer #2: Take, for instance, bankruptcy law, Chapter 7. It has 85 different and unique laws, numbered from 701 through 784. So, 11 USC § 784 is the last of the 85 laws dealing with “Chapter 7 Bankruptcy.” The law that comes next is the first law of Chapter 9, 11 USC § 901.

Question #3: What are each of the Bankruptcy Law Chapters about?
Answer #3: Here’s a link that answers that very thing: http://www4.law.cornell.edu/uscode/11/.

Question #4: Which Bankruptcy Law Chapters apply to me?
Answer #4: Well, that just depends on who “me” is? If you are the average citizen (and not a corporation or a city), then Chapters 7, 11, and 13 apply. Chapter 12 might also apply if you are a fisherperson or a family farmer, and Chapters 1, 3, and 5 apply to everyone, as they relate to general provisions, case administration, and definitions. Chapters 9 and 15 relate to municipalities and foreign debtors.

Question #5: How can I know which Bankruptcy Law Chapter to file under?
Answer #5: This is one reason why people hire lawyers (another is to make sure the mountain of paperwork is done correctly). It is the lawyer’s job to know how your particular facts apply to the United States Code. For instance, if you are a homeowner, you might be torn between a Chapter 7 liquidation or a Chapter 13 wage earner’s plan. Various factors go into making that determination, such as how much money you make, the value of the home and the mortgages attached to it, your disposable income, etc.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney talks on what not to wear

Clients often ask what they should wear to the 341(a) hearing. I guess the thinking is they want to look nice enough to respect the court yet modest enough to justify filing for bankruptcy. The truth is, the 341(a) does not transpire in court at all, so “court attire” is not necessary.

Nonetheless, the trustee and your lawyer will both be wearing suits (or other professional attire), so a small bit of cleaning up is appropriate. Additionally, the whole affair is quasi-judicial: you will be testifying under oath and the documents themselves relate to federal bankruptcy court jurisdiction. On the other hand, looking impoverished so as to justify the need to file bankruptcy is both inconsistent with the law and just plain silly. Filing for bankruptcy never requires that the debtor lose everything (or “be down to the felt,” in poker parlance). Most people keep everything they own when filing for bankruptcy, and, unless you have gold-plated socks or regularly wear the Shroud of Turin, your clothes are entirely “exemptable” anyway (meaning the trustee is barred by law from seizing clothing or other typical household belongings). So, my advice is: wear something comfortable that you might wear to a pot-luck at a neighbor’s house, or to a parent-teacher conference, or on a fifth date to the movies…for instance.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney explains the date you file your bankruptcy...

Generally, the date of filing your bankruptcy petition is the most important date. If you buy or sell property after the 341(a) hearing or get a raise, it does not matter: you are filing bankruptcy based on the past, not the future, and what defines what is the past and what is the future is the date of filing. However, as today is the NFL draft and some young kids are about to come into millions of dollars in windfall, there are times when a post-filing intake of money does matter. If you come into money through inheritance or divorce settlement, for instance, within 180 days of the bankruptcy, the trustee is going to need to know this, even if you have already attended your 341(a) first meeting of creditors hearing or your case has been discharged. The duty to report it is yours. Some might take the position that any windfall should be reported, but the law doesn’t say that. Know your rights. Consult a San Diego bankruptcy attorney to learn what yours might be.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney reminds us of Patriot Day

April 19th was Patriot’s Day, the national day of commemoration of the first battles of the Revolutionary War, Lexington and Concord. The redcoats (or, more formally, the British Army regulars under the command of Lt. Col. Francis Smith, all 700 of them) attempted to seize colonial supplies (presumptively, arms) but we fought back. Making a long story short, we then won the war and, with it, our independence. So, with that in mind, let today be your Patriot Day. Fire no weapon and start no revolution, but get your own independence: financial independence. Your best weapon is a bankruptcy case number. Your strongest ally is knowledgeable, experienced bankruptcy counsel. Many folks died so we could be ourselves, and fortunately so; because, apart from the horribleness that is Yorkshire pudding and the embarrassment that is a tax-supported monarchy, the British do not have so clean and easy a system of bankruptcy as we Yankees. No need to cross the Delaware, just drive on over to Carlsbad. But please, kindly leave your musket at home.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney fulfills a taxing need to discuss topics that are mostly federal....

In case you hadn't noticed, tax day is here. That said, this bankruptcy attorney thought it a good time to remember that the laws which govern bankruptcy are also federal in nature, despite the fact that the exemption statutes (CCP §703 and CCP §704) which govern how a debtor keeps his or her property are state-specific. You should think of bankruptcy as the domain of the government of the United States of America, not uniquely California. The people that make and change the laws regarding bankruptcy are Senators and members of the House of Representatives. They live in Washington D.C., not Sacramento. Challenges to the bankruptcy code are heard in federal court, not the local municipal variety where you may pay your traffic ticket. Fraud and other crime related to bankruptcy are investigated by the Federal Bureau of Investigation, not the local Sheriff, though a state-prosecuted criminal charge for fraud can be used in bankruptcy proceedings to preclude the discharge of debt associated with that fraudulent act.

Specifically, the bankruptcy laws are codified within Title 11 of the United States Code. The Chapter number is (conveniently) linked to the type of relief sought. Thus, a Chapter 7 bankruptcy is found within Title 11, Chapter 7; and a Chapter 13 bankruptcy within Title 11, Chapter 13. This makes it easy when reviewing law to figure out what type of bankruptcy is being discussed. Section 707, for instance, deals with a Chapter 7 bankruptcy; and Section 1322 relates to Chapter 13s.

Historically, federal bankruptcy jurisdiction first originated in 1800 when federal district court judges were authorized to appoint commissioners to oversee the discharge of debt. In 1841, Congress granted broad authority to the courts to handle bankruptcy proceedings. The 1898 Bankruptcy Act detailed specific bankruptcy powers and stood as the law on bankruptcy within the United States for 80 years until the Bankruptcy Reform Act of 1978. Another change was made in 1984 and then again, in 2005, with the Bankruptcy Abuse and Consumer Protection Act. This law now governs all bankruptcies. Give Sagaria Law a call to see how it applies to you.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

San Diego Bankruptcy Attorney discusses how economic woes can affect anyone

Undefeated and headed to the national championship football game, University of Texas quarterback Colt McCoy was named 2009’s winner of the Johnny Unitas Golden Arm Award. Of course, “Johnny U” finished his legendary career here in San Diego, playing five games with the Chargers in 1973. Eighteen years later, in 1991, the Pro Football Hall of Famer filed for bankruptcy.

As a San Diego bankruptcy attorney, Sagaria Law understands that financial troubles can affect anyone, even professional athletes. Providing counsel to local residents, we as San Diego bankruptcy lawyers recognize that Southern California has been dramatically impacted by the recent global economic crunch, particularly in the area of real estate. When troubled times arise, it is worthwhile to consider a Chapter 7 liquidation, Chapter 13 wage earner’s plan, or Chapter 11 reorganization, even if you’re unsure about what that may mean. Contact a respected, experienced, and local San Diego bankruptcy lawyer to find out more about your available options.

We San Diegans are keenly aware of issues regarding stadium financing for the Chargers and the finances of former Padres owner John Moores associated with his much-publicized divorce. Economic hardship can hit anyone, anywhere, at any time. Thankfully, relief is available. San Diego bankruptcy attorneys are here to help you when those times come, whether you’re throwing touchdowns yourself, or just watching the pros do it on tv.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego Bankruptcy Attorney laments on the housing market in Milwaukee....

At least we aren’t Milwaukee – and I don’t just mean that it is warmer here. While San Diego (including Carlsbad, San Marcos, and south) finished tenth in Forbes’ “Worst-Selling Housing Market” survey, Milwaukee finished first…or last, depending on how you see it. The San Diego area has been hard hit since the real estate bubble burst – after peaking in the first quarter of 2006 – due to expansive construction of condominium projects, many of which now sit unoccupied, and a massive influx of speculators. Couple this with the fact that California has been called the “birthplace of subprime lending” (by Jonathan Miller, president of Miller Samuel) and it all adds up to a troubled real estate market. There might be a silver lining in there somewhere, though, if we San Diegans remember how lucky we are to live where we live. What I mean is, a distressed real estate market means home values have fallen. If you home’s value has fallen below what you owe on your first mortgage (assuming you have at least two mortgages or liens secured by your home), then you might well qualify for a “lien strip.” This is a procedure in Chapter 13 whereby the unsecured second (or third) mortgage on your home gets declared “unsecured” and becomes akin to credit card bills or medical debt. And since Chapter 13 is voluntary and does not have a means test component, you are more than likely eligible to get this relief. There are some things that need to be figured out more specifically, of course, but freeing yourself of tens (or even hundreds) of thousands of dollars in secured debt can be a real boon. Call a local San Diego bankruptcy attorney today and we can help answer whether a Chapter 13 lien strip is something that can benefit you. You really have nothing to lose but a considerable amount of debt!

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

San Diego Bankruptcy Attorney Discusses Retaining Common Sports Memorabilia Within A Chapter 7 Bankruptcy

Do you know how much your Dan Fouts rookie card is worth? And what if it’s signed? Well, some items do have a known market value. Beckett seems to be the go-to source for pricing sports memorabilia. And auction history might also be value-setting (that is, a Honus Wagner card sold for $2.3 million in 2007). But most items – like a Dan Fouts or Kellen Winslow card – are not the hottest of commodities within the memorabilia submarket. So, when it comes time to set a price point on your assets within a Chapter 7 bankruptcy, this San Diego bankruptcy attorney suggests you ask a few friends what they might pay for your random items. Indeed, the value asked for within a Chapter 7 bankruptcy petition is akin to “garage sale value.” So, you should know already if you have a Honus Wagner card. But your fourteen different Ladanian Tomlinson cards are no Honus Wagners. Such cards might not even be worth the spokes on a bicycle they may have been placed between.

So, if you are considering a San Diego Chapter 7 bankruptcy and are asking yourself if filing will cause you to lose your beloved sports memorabilia, you should probably not worry too much. Not only can the section-703 wildcard exemptions help protect your property, but the items themselves may not have any real garage sale value. In other words, while Chapter 7 bankruptcy is considered a “liquidation” of your property, your personally-valuable property might not have substantial street value, and, accordingly, will probably be fully protectable.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney talks about wage garnishment

Having your wages garnished can be both a financial strain and, possibly, an embarrassment at work. Unless you work for a very large corporation where payroll is handled offsite, the human resources/payroll department of your employer may make your very private business all too public. Considering that a wage garnishment is excellent incentive to file bankruptcy, you will – as a result of the garnishment – have less money to retain counsel to assist you in moving that bankruptcy forward. That is, once a bankruptcy is filed, the garnishment should cease, immediately (this is the automatic stay). And once you get the sought-after bankruptcy “discharge,” the underlying debt which spawned the garnishment will essentially evaporate, and you will owe nothing on it (unless the judgment relates to fraud or a personal injury case stemming from a DUI). The lesson, then, is clear: if you are being sued or fear you might soon be sued, any delay in filing a bankruptcy might open the door for a garnishment and, thereby, hinder your ability to thereafter retain counsel to file the bankruptcy, let alone pay for rent, food, gas, etc.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney talks purchasing money

In legal terms, a Purchase Money Security Interest is “the security interest held by the seller of collateral to secure payment of all or part of the price.” Said differently, it’s collateral. Houses and cars are the most common examples: if you fail to make payments on a house or a car, the bank will foreclose on the house or repossess the car. What you may not realize, though, is that a purchase money security interest may apply to your new flat-screen TV or your washer and dryer.

Say, for instance, that you bought a new high-definition television from a major retailer for $1500 and that you paid on some form of credit (not cash). Whether or not you know it, that TV is a purchase money security interest until paid off in full. In other words, if you do not make payments on the credit card, the bank has the right to retrieve the property. Most people do not realize this when they make big-ticket purchases. Next time you do, check your receipt; it will probably be quite a bit longer than a receipt you might get when you buy chewing gum. The long receipt, in fact, spells out how that television is still the bank’s until you pay in full for it.
When you file for bankruptcy and list, as you must, the credit card with which you paid for the TV, the bank will very often contact you (or your attorney) and seek to either recover the property or continue to get paid for it. Be careful, then, buying big-ticket items as a gift because if you do not have access to the property (since it is now in the hands of the gift recipient), the option to have the property returned to the bank is gone. The bank can then ask that the court not allow you to discharge their debt. The court will probably grant that request.

If you still have possession of the property, it is sometimes wise to tell them, “Okay, pick it up.” Usually, after calculating the resale value of the property and the costs involved in retrieving it from your house and storing it, they will do nothing. Sometimes it is wise to work out a payment arrangement with the bank. Most of the time, the bank will ask you to “redeem” the property. This means they want a lump sum for it, albeit at a significant reduction in price. The banks are hesitant to reaffirm the debt (i.e., keeping the payment terms and interest rate as they were) because, in filing bankruptcy, your credit-reliability is low.

Discuss this and other aspects of what happens to your property when you file a Chapter 7 with a San Diego bankrutpcy attorney.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney says Do It Right

If you are going to do it, do it right. While that statement applies to most anything you do, it should seem obvious that it must always apply in a bankruptcy filing. What I mean is, each and every bankruptcy petition in a Chapter 7 liquidation or a Chapter 13 wage-earner’s plan must, by definition, be signed under penalty of perjury. The trustees do not ask if you “think” the facts within the petition are true, the question is pointedly, “are the data provided actually true?” While you will likely avoid criminal charges if your information is provided in good faith, the absolute duty is to have the facts 100% correct, every time. The United States Trustees Office annually provides a review (or audit) of a sampling of cases filed to determine whether petitions are accurate. This year’s report (the link is below) shows that 22% of all filings have at least one error. The Southern Section of California (where local San Diego area bankruptcies are filed) fared slightly better than average with one error in every 18% of petitions reviewed. This number is still sadly too high, as it is nearly 1 in 5. At Sagaria Law, our goal is to have the petitions prepared correctly, the first time, without fail. This serves to not only do what the law demands but also to streamline the process for you, the client, saving you return visits to continued 341(a) hearings and getting that discharge as soon as possible. So, in light of the high number of faulty petitions, the lesson is clear: if you need to file a bankruptcy, consult a San Diego bankruptcy attorney; if you are going to do it, do it right!

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney says don't take his word..

Don’t just take my word for it. I have been posting in this blog for some time now that going bankrupt is often a good choice, so much so that the consequences are far less severe than you might think. This link – written by an Oprah contributor! – echoes my sentiments:

One thing not mentioned in the article is how the growing number of bankruptcies will force lenders to overlook them, to an extent at least. Lenders will be shooting themselves in the foot if they decline to lend to all those millions of people who filed for bankruptcy – filings borne not from financial mismanagement, but due to the collapse in the economy at large, a casualty no one person is responsible for. Find out how bankruptcy can help you. Contact a local San Diego bankruptcy attorney. Your credit recovery will be shorter than you think.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surrounding cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy lawyer gets webby

If you’re reading this, you’re reading it on the web. Indeed, the internet is a wonderful resource. I regularly look to the internet for news about companies in bankruptcy or for broad reference to federal legislation which might have ramifications for bankruptcy law. These seem to me to be appropriate uses for the internet as it relates to bankruptcy. And I can see the benefit in understanding bankruptcy-related definitions catalogued on the web (like Googling “what is the automatic stay”). Just be careful looking too deeply into web postings for information related to YOUR specific financial situation. There really is no interactive Q&A that a website can do with you, and it is ultimately the specifics of your own, unique situation that is likely motivating you to conduct your web search. Accordingly, in light of the fact that Sagaria Law will give you a free consultation – and can be retained for as little as $100 – an in-person sit-down with a local San Diego bankruptcy attorney here at Sagaria Law is worth your time. You will assuredly find answers no website can give you.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney discusses business and bankruptcy...

Reflecting on American Airlines’ interest in investing in Japan Airlines (JAL) even if Japan Airlines files for bankruptcy. Were I not a San Diego Bankruptcy Lawyer, I think I would have been taken aback at reading such a thing. To this author, and probably to many non-lawyer folks, a bankruptcy means you are broke or you are going out of business. Why would one company seek to invest in a company that might soon file for bankruptcy? Well, fortunately, I am a San Diego Bankruptcy Lawyer, and the answer lies in what it really means to go bankrupt (from a corporate perspective) and what the law allows a debtor-business to do during a bankruptcy. In short, it does not necessarily mean you are broke or a company is going out of business.
Unlike a consumer Chapter 7 bankruptcy or a Chapter 13 bankruptcy that would apply to John Q. Citizen on the street, a corporate bankruptcy is generally filed under Chapter 11. Where Chapter 7 bankruptcies are considered a “liquidation,” and Chapter 13 bankruptcies are called a “wage earner bankruptcy” or a “repayment plan bankruptcy,” Chapter 11 is known commonly as a “reorganization.” As a quick aside, do not be discouraged by the words “liquidation” or “repayment plan,” as, generally, those people who file for Chapter 7 bankruptcy get to keep all their property (and nothing is, therefore, liquidated) and, similarly, in a Chapter 13 bankruptcy, that which gets “repaid” is very often only a small portion of a person’s total unsecured debt (like credit card debt).

So, in the Chapter 11 bankruptcy applicable to Japan Airlines, they will get to reorganize their corporation pursuant to a plan between themselves and their creditors. Some debt may be forgiven; some may be rewritten or deferred; contracts are changeable; leases are re-evaluated; inventory may be sold or returned. Any number of options is available to Japan Airlines. So, when American Airlines considers investing in them, they are not buying into a sinking ship; they are merely making a calculated business decision to consider cooperation with, or ownership of, some or all of Japan Airlines’ healthy functionality. And as a San Diego Bankruptcy Attorney, I think it might well be wiser for American Airlines to invest in Japan Airlines AFTER a Chapter 11 bankruptcy. Japan Airlines’ debts might be minimized, their contracts more favorable, their business operations more streamlined, etc. This might make investment cheaper yet also more profitable to the investor. In sum, then, when you hear about bankruptcy, do not always assume the worst: filing for bankruptcy is often a wise option. Consult a local San Diego Bankruptcy Attorney with questions you might have about what filing a bankruptcy can do for you.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!

A San Diego bankruptcy attorney presents options regarding bankruptcy

Sometimes, people who are considering bankruptcy do so before they are late on any payments whatsoever. Of course, the usual situation is that you come to discover, perhaps all too late, that you cannot meet your financial obligations month-to-month. Well, sometimes the writing on the wall is just too plain to be unseen, and bankruptcy becomes an option before one payment is tardy. In these cases, it is important to consider that time may be on your side. It will take months and months before a creditor sues you or your collateral is threatened; and your bank account does not need to be at $0 for bankruptcy to be a good idea. Consider the case of the person where their car is so upside down that they want to surrender it to the bank as part of their bankruptcy. Here, it might be a great idea to purchase a new (or, rather, new for them) car while their credit is still good (or at least before the bankruptcy hits the credit report) so as to secure a better loan (with preferred interest rates). This strategy can even provide this debtor additional time to drive the car they are planning to surrender…for free. Of course, it is important to continue to insure this vehicle. Vehicle repossessions generally do not occur until one is 60 days late on payments or so, but this can fluctuate. The point is, consider contacting a local San Diego bankruptcy attorney to discuss your options. With training and experience comes insights you might not think about on your own.

If you have questions regarding Bankruptcy in San Diego County, including Carlsbad, San Diego and surround cities in San Diego County please contact us at (760) 579-7322 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Diego Bankruptcy Attorneys. After you have spoken with one of our San Diego bankruptcy attorneys, we can schedule you for a free face to face appointment in our Carlsbad bankruptcy office. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Deigo consumers in debt 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, Southern California!