Sacramento Bankruptcy Lawyers Blog

A Sacramento bankruptcy attorney tells debtors about credit counseling courses when filing bankruptcy

Sacramento: let’s face it, if you’re considering filing for bankruptcy you may not have the best spending habits. Still, in the spirit of transparency, most Americans today (including this writer) probably could use some personal finance coaching. It should therefore come as no surprise that part of the process of filing for bankruptcy involves two credit counseling courses. Specifically, a debtor must take a credit counseling course before filing their petition and after filing their petition.

Sacramento, I know what you’re thinking, you hate homework. Not to worry, the credit counseling courses are but a minor inconvenience. Some courses are now available online and are not too expensive. And if I may be so bold Sacramento, the course may do you some good. So take heart Sacramento, the credit counseling courses are not the end of the world.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

A Sacramento bankruptcy attorney discusses Six Flags, Inc. bankruptcy

Six Flags, Inc., one of the world’s largest operators of regional theme parks across the country filed for bankruptcy protection last summer, with a proposed plan that transferred almost all of its stock to senior lenders to reduce it’s debt. Under that plan, noteholders would receive approximately 25% of the new common stock and rights to purchase an additional 70%. News sources now report that bondholders of the corporation are asking a judge to terminate the company’s right to exclusively file a plan of reorganization. Instead, the bondholders claim they have a better proposal which would pay the note holders in cash and in full.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

A Sacramento bankruptcy lawyer outlines fraudulent debt in a bankruptcy filing
Sacramento, as we approach the close of tax season and a close review of our financial straits, there may be some debtors who know they are going to file bankruptcy. For many this realization may be a difficult pill to swallow. Still, some debtors may take this as an opportunity to run up their credit card bills to pay for debts or necessities knowing they will discharge the debt when they file for bankruptcy. Not so fast my friends!

Debts from fraud are non-dischargeable. Thus, if a creditor can prove that your debt arose out of dishonesty, the court probably will not let you discharge that debt.

For example, you know you are going to file for bankruptcy, but your five year old daughter really wants a pony for her birthday. Being the kind parent you are, you pay $5,000.00 for your daughter’s beloved pony by using your credit card. A couple months later you file for bankruptcy after making only one payment on that credit card after purchasing the pony. In this situation a debtor should not be surprised to have the creditor object and the court agree this debt should not be dischargeable.

So, word to the wise, Sacramento, enjoy life. But do so responsibly.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

A Sacramento bankruptcy lawyer comments on Charter Communications emergence from bankruptcy

Last year, Charter Communications finally emerged from bankruptcy. The company filed for bankruptcy protection under Chapter 11 approximately seven months ago after facing significant financial hardship . Despite opposition to Charter’s reorganization plan from Wells Fargo, JP Morgan Chase, and other creditors, the company has successfully reentered the television services and broadband market. It’s reported that Charter was able to cut its debt load by approximately forty percent or $8 billion.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visitwww.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

Thursday, March 25, 2010

Sagaria Law opens a new location in Carlsbad, CA

Scott J. Sagaria of Sagaria Law, PC Bankruptcy Attorneys is proud to
announce the opening of a new bankruptcy law office in Carlsbad, Ca, in
beautiful San Diego County. Its 10th location, Sagaria Law, Carlsbad is
the first in Southern California, and managed by Attorney Darin King.
"We are happy to be serving the greater San Diego County area with any
and all bankruptcy needs, including chapters 7, 11, and 13," said an
enthusiastic King, "and offer a low retainer fee of an unparalleled $99.
Come by and see us!" Sagaria Law also has offices throughout the Bay
Area and greater Portland Area, with more new offices slated for Spring
2010. Stay in the loop by visiting Sagaria Law.

Tuesday, March 23, 2010

Sagaria Law Staff Survives Bankruptcy Bootcamp

Congratulations to the Sagaria Law Bankruptcy Attorneys professionals, a.k.a. survivors, of Max Gardner's Bankruptcy Boot Camp, a comprehensive and intense 4-day private boot camp focused on learning and implementing the now famous Max Gardner "Bankruptcy Litigation Model." The boot camp, held deep in the heart of North Carolina on Gardner's breathtaking and massive ranch and home, was seen as a vital and integral component to Sagaria Law's Scott Sagaria, Esq. in forwarding his bankruptcy team's knowledge base on bankruptcy litigation and consumer rights advocacy.
Sagaria had to say this of the experience, "The training my bankruptcy
staff and I received was immeasurable both with regard to Max Gardner's vast experience in the bankruptcy industry and his proven 'tools of the trade.'" Among "Team Sagaria" bankruptcy bootcampers were Brittany Klein, Carrie Ramirez, Scott Sagaria, and Dominique Sopko. All are based out of the Sagaria Law bankruptcy flagship office in downtown San Jose, California. To learn more about Sagaria Law, please visit Sagaria Law. And for more on the bootcamp, click here.

A Sacramento bankruptcy lawyer discusses in depth a bankruptcy case heard by the Supreme Court

These days most people who’ve gone on to college or graduate school carry large amounts of student loan debt. In this economy, it has become increasingly difficult for people to pay those debts back. Based on current laws it is extremely difficult to get rid of student loan debt by filing for bankruptcy, however it is possible to restructure the debt. So what happens when The Supreme Court weighs in on what the obligations of a lender and a borrower are when a student is unable to pay back student loan debt.

A particular 2009 case involved a debtor earning just over $6 an hour with approximately $13,000 in student loan debt. The debtor had no other debt except $13,000 in student loans. The debtor filed for bankruptcy protection under Chapter 13, and worked out a payment plan to pay off the loan and bankruptcy fees but not the accrued interest on the loan of approximately $4000. The lender was notified in writing and filed no objections. Six months later, a federal bankruptcy judge approved the plan, and despite being notified a second time, the lender did not file an appeal. The debtor completed his five year bankruptcy plan and the court declared his debts paid in full. Eleven years after the bankruptcy court had confirmed the original repayment plan, the lender tried to claim that the plan was illegal and void. A federal appeals court denied the lenders claim that is was taken advantage of. The lender, filed an appeal with the US Supreme Court.

It is the lender’s position that without a finding of undue hardship, a bankruptcy plan that discharges any part of the student loan debt, including interest is illegal. On the other hand, the debtor argues that the lender never filed an objection; and a final judgment was issued. Depending on the outcome, there is likely to be significant ramifications for the student loan industry.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

A Sacramento bankruptcy attorney advises on paying back debts to family members prior to bankruptcy

It is not uncommon for people to borrow money from family members. Many people in contemplation of bankruptcy wonder if they can pay their family member back prior to filing for bankruptcy in order to avoid this person becoming a creditor. For example, Debtor’s brother loans him $10,000 to help through a tough time. Debtor’s financial circumstances do not improve and Debtor needs to file for bankruptcy. Debtor manages to come up with $10,000 prior to filing for bankruptcy and pays his brother back. Debtor then files for bankruptcy a month later.

In this situation, the $10,000 that the debtor paid to his brother is likely to be recovered by the bankruptcy estate. The general policy behind recovering these funds are that when a person files for bankruptcy, one creditor should not be preferred over another, or that all creditors should be treated equally. While an unfortunate circumstance, it is not advised that you pay back your family members in contemplation of bankruptcy.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

A Sacramento attorney advises on purchases made prior to filing for bankruptcy...

With the warmer months approaching, it’s not uncommon for people to make seasonal purchases such as vacations and other big ticket items on credit. Perhaps you are relying on a substantial tax return, or hoping that your financial situation will improve come fall. If for any reason, a person is soon thereafter in a situation where they are unable to pay for the items purchased, and also find themselves needing to file for bankruptcy, the items purchased may be considered part of the bankruptcy estate and recovered.

A debtor who qualified for a Chapter 7 bankruptcy will be eligible to discharge all of their unsecured debts such as credit card debts or personal bank loans. From a creditor’s perspective, based on the item purchased, it may be worth it to challenge the debtor’s bankruptcy petition and force the debtor to pay back some of the debt. To be safe, it is best not to make any big ticket purchases for at least a year prior to filing for bankruptcy.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

A Roseville Attorney Discusses Lawsuits in Bankruptcy

Did you recently receive a summons for a lawsuit initiated against you by one of your creditors? Due to personal financial hardship, whatever their circumstance may be, many consumers have been relying on credit cards to meet their basic living expenses; then found themselves unable to make payments on those cards. As many consumers come up against financial hardships this winter, bankruptcy may be an option for freeing themselves of a lawsuit, as well as, other debts. As soon as a debtor files for bankruptcy, a waiting period called the automatic stay goes into effect. During this period, both lawsuits against a debtor and informal attempts to be paid by a debtor are temporarily prohibited. Thereafter, depending on the chapter of bankruptcy, and type of debt, a debtor qualifies for; the lawsuit may simply be discharged with no further action against the debtor for pre-bankruptcy debts being permitted.

On the other hand, the automatic stay may not necessarily apply to actions by the debtor. Therefore if for example a debtor has a pending lawsuit against someone else, that action will generally continue on. The automatic stay, however, does apply to counterclaims. This means that if other parties in the debtor's litigation have filed counteractions in that same dispute, the counterclaims could not generally proceed. Parties seeking relief by asserting a counterclaim would need to request that the stay be lifted.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

Sacramento Bankruptcy Lawyer Discusses Charter Communications Reemergence from Bankruptcy

Charter Communications, the fourth largest U.S. cable operator, has emerged from Chapter 11 bankruptcy and financial restructuring, having cut its debts by forty percent, or $8 billion. Under the plan, all existing Charter common shares are cancelled with the company intending to apply for a listing of new common stock on Nasdaq in the near future. Charter is also to receive $1.6 billion through a rights offering and thus puts it into a solid financial position. Charter is controlled by Microsoft Corporation whose co-founder, Paul Allen, will continue as a co-investor as well as retaining the largest voting interest in the company.

The cable operator filed for bankruptcy in March 2009 when it was saddled with more than $21 billion in debt. Before doing so, the company pre-negotiated debt restructuring plans with some of its bondholders. The confirmation of Charter’s bankruptcy plan came after an extensive trial in which J.P Morgan Chase and Co. alleged the cable operator’s prepackaged bankruptcy resulted in default of its debt as it shifted control of the company from a co-founder to a group of noteholders. The U.S. Bankruptcy Judge disagreed finding that while Allen was to have an $8 billion investment in Charter eliminated and cede control while maintaining sufficient voting power to avoid causing any change in control. In any event, the completion of Charter’s Communications’ bankruptcy represents resolution of one of the largest bankruptcy cases in history.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

A Sacramento bankruptcy lawyer comments on forclosure rates...

It isn't exactly news that California has posted the nation’s second highest foreclosure rate in recent months. Foreclosures in California are up 50% from the same time last year. California’s default notices and schedules foreclosure auctions are up 120% and 73% respectively. A recent survey shows that 7 out the top 10 metropolitan area foreclosure rates were in California. San Jose was thankfully not among the top ten, but its foreclosure rates are still dramatically up from last year. The hardest hit metro cities in Northern California are Vallejo-Fairfield, Modesto, Merced, Stockton, and Sacramento.

A chapter 13 bankruptcy can help consumers stop a foreclosure on their home. The 5 year (60 month) restructuring plan allows debtors to repay any arrears on their home over 60 months, so long as the homeowner is able to make their current mortgage payment in addition to the monthly arrears repayment. The benefit of this type of repayment plan is that the arrears cease accruing interest and the stress of a pending foreclosure is lifted.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

Sacramento Bankruptcy Attorney Discusses Credit Card Usage Prior to Filing for Bankruptcy

With the state of the economy and the unemployment rate at record levels, relying on credit cards for all purchases has become a way of life for many Americans. However, individuals planning to file for Chapter 7 bankruptcy must be extremely conscious of their credit card usage as such usage pre-filing may be deemed unreasonable and fraudulent, thereby jeopardizing their entire bankruptcy filing. Anyone who has decided to file for bankruptcy or has hired an attorney to do so should immediately stop using their credit cards.

The natural inclination for many people planning to file for bankruptcy is to max out their credit cards before filing. However, doing so is highly discouraged as creditors will review all transactions on your account typically for at least a year prior to your bankruptcy filing. If the creditor considers your spending behavior abusive, it may challenge your right to discharge some or all of the debt incurred. This not only complicates your bankruptcy filing but also places your entire filing at risk, which ultimately is a far worse scenario. Thus with all pre-filing credit card usage, it is important to keep in mind the reasonableness standard which is the standpoint all such transactions will be viewed from by the creditors upon filing for bankruptcy.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!

Sacramento Bankruptcy Lawyer Discusses the United States Supreme Court’s Agreement to Hear Case Involving Student Loans

More than a third of those people seeking post-high school higher education, apply for some sort of student loan. A large majority of these loans are guaranteed by the federal government which is also why federal law makes it next to impossible to discharge such debt. Student loan debt may only be discharged in cases of undue hardship under the bankruptcy code although there is no restriction on restructuring the debt.

This issue arose when Francisco Espinosa filed for Chapter 13 bankruptcy in or around 1994. His only debt was approximately $13,250 in federal student loans owed to United Student Aid Funds Inc. A plan was devised with the bankruptcy trustee in which Espinosa would pay off the loan with the exception of the accrued interest totaling approximately $4,000.00. The lender was notified in writing but filed no objections and thus the plan was approved by a federal bankruptcy judge. Espinosa lived up to the plan’s requirements, paying it off in installments upon which the bankruptcy court declared the debt paid in full.

Nevertheless, years later, the lender attempted to collect the accrued interest from Espinosa and eventually filed suit alleging that the Chapter 13 Plan was void as there was no showing of undue hardship which would have required the bankruptcy court to conduct an adversary hearing. A federal district court rules in favor of the lender but this decision was reversed on appeal to the Ninth Circuit Court of Appeals. It found that the lender had missed its opportunity as the bankruptcy court already made a final order discharging Espinosa’s debts. The United States Supreme Court has now agreed to hear the case. Hence what started as bankruptcy case involving a relatively small amount of debt could not have enormous ramifications for the entire student loan industry. Only time will tell what those ramifications will be but this Fremont attorney is eager to see what the outcome will be.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement 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, Sacramento and Roseville!