Sacramento Bankruptcy Lawyers Blog

A Sacramento bankruptcy lawyer comments on the Chapter 11 Bankruptcy Code

Chapter 11 of the Bankruptcy Code provides the law that any corporate reorganization must meet. The Code provides for the filing of an voluntary petition and rights of nondebtors such as creditors. The time frame is outlined setting forth who will serve as trustee and when the creditor's meeting will take plan. The Code also provides for the employment of entities necessary to run the bankruptcy or business and gives requirements for how the business will continue to operate.

Next the Code provides for the business to file a plan and disclosure statements. Votes are solicited from parties in interest and actual voting takes place. If the business cannot devise an accepted plan other parties may file plans. The filing business will set a confirmation hearing and objections to the plan are heard if there are any. Any confirmed plan must meet the confirmation requirements under Chapter 11.

Once the plan is confirmed then the business receives a discharge and the revesting of property to itself. The case is finally closed and the business is reorganized.

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 elaborates on Chapter 11 bankruptcy

The goal of a Chapter 11 case is the rehabilitation of the debtor or corporation. The reorganization as a going concern is important to corporations filing for bankruptcy relief because they can continue the operation of their business under the protection of the automatic stay. Still operating the Chapter 11 corporation can preserve it profitable activities and assets while it negotiates with its creditors and attempts to develop a plan for the satisfaction of debts and the turn around of the struggling business.

Bankruptcy law provides for all of the different entities affecting the business to have input on the Chapter 11 plan and also serves as a structure for the implementation of nonbankruptcy law as a part of the reorganization.

Committees of creditors are developed for the communication of information and for approval of the plan.

If negotiations are successful then the business will formulate a plan of reorganization. If the plan meets the requirements of the bankruptcy code then it is confirmed. The business will implement the plan. Once the plan is carried out all prepetition debts are discharged and business is reborn.

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!

Press Release
May 2010

Sagaria Law Builds Upon Bankruptcy Division

Sagaria Law is one of the fastest growing bankruptcy law firms in California. In addition to expanding their reach to consumers in debt beyond California to Oregon, they have announced acquiring several new team members to their bankruptcy division.

New additions to their bankruptcy specialist team include Garrett Lenox, Bankruptcy Administrative Assistant; Kari Batrez, Bankruptcy Administrative Assistant; and Sean Fitzpatrick, Paralegal and Internet Marketing Specialist.

“We focus on the client first. In order to manage each client’s individual case from beginning to end, we continue to surround our team of bankruptcy attorneys with bankruptcy specialists and administrators that can effectively support the execution of each client goal as well as make sure the client is satisfied every step of the way. It is this model that opens doors to referrals, and thus, growth,” is how the firm’s principal, Scott J. Sagaria Esq. explains it. “We want to make sure all bases are covered at all times.”

Having recently filed bankruptcy #1000 for 2010, the model seems to be working.

PUBLICITY CONTACT:
Toby White
Sagaria Law PC
408.279.2288
twhite@sagarialaw.com

A Sacramento bankrutpcy lawyer talks about manadatory trustee meetings

The Bankruptcy Code requires anyone filing for debt relief under Chapter 7, Chapter 13, or Chapter 11 to attend a mandatory meeting called the First Meeting of Creditors. The basic purpose of this meeting is for the trustee appointed to the case to examine the person or business filing for bankruptcy.

The purpose of the examination is to review the petition and validate any nonexempt equity or any prepetition transfers. If the petition states that there is nonexempt equity or prepetition transfers the trustee's job is easy and he will verify whether there are any assets for liquidation and distribution to creditors. If there is then he will file a notice of assets and invite creditors to file claims against the estate.

The trustee will also use the meeting as an examination to determine whether there are assets or transfers not listed on the petition.

Those appearing at the First Meeting of Creditors are under oath and must tell the truth under penalty of perjury. If there are assets or transfers not listed on the petition then two things must be done: 1) the attorney must amend the schedule disclosing the asset or transfer; 2) the trustee will give notice to creditors of unlisted assets.

The trustee will also use the meeting to see whether the attorney prepared the petition with accuracy. Those attorneys performing their due dilligence and fully disclosing the filer's assets and liabilities will be done at the meeting. Those attorneys who fail to list assets or debts will have to correct the mistake and come back a second time.

File your case with an attorney and get everything correct the first time.

A Sacramento bankruptcy attorney answers the question: What is Bankruptcy Fraud?

Answer: Bankruptcy Fraud includes any attempt by a debtor to hide or conceal an asset or debt when filing bankruptcy.
Bankruptcy fraud also includes an attempt by a debtor to discharge a debt a debtor never intended on repaying e.g. a debtor can’t go out and purchase a vehicle on their MasterCard and turn around and file for bankruptcy. This kind of purchase would be considered fraudulent or in bad faith and therefore non-dischargeable.

The consequences associated with Bankruptcy fraud are stiff. An intentional concealment or transfer of property is a Federal Crime in which the debtor may face stiff penalties and possible prison time.

In other instances a creditor may file an adversarial proceeding disputing the dischargeability of a debt. Generally, in such an instance the debtor would be responsible for paying additional legal fees for an attorney to represent the debtor in the adversarial proceeding.

Question: How do you avoid bankruptcy fraud?

Answer: Disclose all of your assets and debts. If you have any questions about transferring property consult your attorney.

Question: How would the trustee find out if I’m hiding property?

Answer: You will be asked under penalty of perjury at the 341 hearing whether or not all of your assets and debts are listed in your petition. If you lie you have committed a crime. Moreover, the trustee must receive tax returns for the last two years and paystubs for the last six months and will have a very good grasp of your current economic situation. Any red flags (significant drop in income, transfers of property, etc.) that arise on your schedules will alert the trustee to possible fraud.

Bottom line, don’t try and out smart the United States Government.

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!

California’s Single Action Rule and Why It May Preclude The Filing of a Bankruptcy

When it comes to enforcing loans secured by California real estate, California is a “single action” state. Civil Procedure Code Section 726(a) provides in part that “[t]here can be but one form of action for the recovery of any debt or the enforcement of any right secured by a mortgage upon real property.” This “one-action” rule applies whenever a lender with a loan secured by real property collateral exercises its remedies to recover a debt or to protect its security. The purpose of the one-action rule is to protect a defaulting mortgagor from being harassed by a lot of different actions filed against it by the mortgagee. Basically you can walk away from a home and let the bank take the home and not be liable on the debt.

California’s “one-action” statute prohibits the secured lender from pursuing any other judicial cause of action, such as suing the borrower directly, without foreclosing on the real property collateral. As a result, if a lender takes real estate collateral as security for a loan, then lender must foreclose on its real estate security first. Further, a lender can only bring one “action” against the borrower, and must use it as the primary source of repayment when collecting the loan.

Lenders may start more than one collection effort but ultimately select one remedy. For example, home associations may lien a unit and initiate foreclosure and may simultaneously file a lawsuit to recover unpaid assessments. Civil Code §1367.4(b). However, at some point the association must elect its remedy. If the foreclosure results in a sale, the association must dismiss the lawsuit. If the lawsuit results in a judgment, the association must stop the foreclosure and release the lien.

If the association wants to foreclose but also wants a deficiency judgment, it must pursue judicial foreclosure rather than non-judicial foreclosure.

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 bankrutpcy attorney comments on listing your assests when filling bankrupty

Any asset that is scheduled in your bankruptcy petition will revest to your possession when the case is closed. But an unscheduled asset does not revest and could prevent the denial of your discharge. Worse consequences can happen if the omission was intentional. Your bankruptcy attorney needs to make sure that all assets both tangible and intangible are listed. Accrued earnings are owed to a filer and hence not tangible. Most filers are not paid daily and there is usually a delay between the end of a pay period and pay day. On any given day an employee may be owed money for work performed but not yet paid for. The amount owed in proportion to the number of unpaid days worked needs to be listed as an asset on your bankruptcy schedules.

Real estate brokers may have thousands of dollars in commission in escrow but not paid for it until halfway through their bankruptcy. The amount of commission expected should be listed prior to filing. Failure to recognize accrued income as an asset puts the asset as risk of liquidation and thereby defeating the whole reason to file bankruptcy with an attorney.

A Sacramento bankruptcy lawyer answers: Which Bankruptcy Chapter is Right for Me?

There are two policies encompassed within bankruptcy law – liquidation and repayment of debts or rehabilitation where the filer is kept as a going concern and debts are paid over time.

A bankruptcy filer will chose a bankruptcy law Chapter of bankruptcy depending on the filer’s assets, liabilities and goals.

Bankruptcy Law Chapter 7

A bankruptcy law Chapter 7 filing is usually chosen and recommended for those with a large amount of consumer debt who either have an income that is less than the median income corresponding to their household size or have an income with enough liabilities that leave them without a significant amount of monthly disposable income that could be used to repay their debts over five years.

A bankruptcy law Chapter 7 filing will leave financing on collateral with
the same terms entered into prior to the bankruptcy.

Bankruptcy Law Chapter 13

A bankruptcy law Chapter 13 filing is a reorganization that allows a bankruptcy filer to use the bankruptcy laws and propose different terms that enable the cure or catch up of past late payments and reorganization. A person filing under Chapter 13 can repay back taxes over the term of the reorganization at 0% interest. An attractive feature of Chapter 13 is repayment of financed item at its actual value as opposed to the payoff amount owed. The actual value is the secured value and the balance is treated just like credit card debt.

Some bankruptcy filers are forced to file Chapter 13 because they do not qualify for Chapter 7. Bankruptcy filers in this situation can either choose not to file bankruptcy and be responsible for 100% of their debt or file Chapter 13 and repay their debts according to their means.

Bankruptcy Law Chapter 12

A bankruptcy law Chapter 12 filing is a reorganization for those who meet the definition of a farmer. These bankruptcy filers file under Chapter 12 and use bankruptcy laws specific to financial
situations commonly encountered by farmers.

Bankruptcy Law Chapter 11

A bankruptcy law Chapter 11 filing is a reorganization that allows a corporation to receive a discharge of its debts and propose a plan of reorganization that will allow a business to start over without being burdened by loans it cannot repay or leases it no longer needs.

Chapter 11 is also the alternative to those who cannot file Chapter 13 because they exceed the debt limits for collateral backed debts and credit card type debts.

Your goals and the types of the debts you have will compel you to file under Chapter 7, Chapter 13, Chapter 11, or Chapter 12.

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 defines the CA Antideficiency Statute

If a foreclosure sale in California does not generate enough sale proceed to pay off the 1st Deed of Trust and the original loan was used to buy the property then the lender must accept the loss from the deficiency. The lender cannot pursue the home borrower. This law is generally called the CA Antideficiency Statute.

The CA Antideficiency statute does not apply to home equity lines of credit (HELOC) with a junior lien on the residence. Borrowers who walks away from the home and rents find themselves being sued by the HELOC lender for the entire loan.

Although the lender for the 1st cannot pursue the 2nd Deed of Trust or HELOC can which may be a good reason for filing bankruptcy and undergoing a long term rehabilitation of credit worthiness.

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 answers a question on the specific components when filing a Chapter 11 bankruptcy plan of reorganization?

What are the specific components of a Chapter 11 plan of reorganization?

All bankruptcy law follows the same federal guidelines which are set forth in Title 11 of the United States Bankruptcy Code. A Chapter 11 bankruptcy is no different. The first and foremost requirement in a Chapter 11 plan of reorganization is what is known as ‘classification.’ All debts, secured and unsecured, must be given a label and all similar debts are clumped together to make the payments on secured and unsecured debts easier for the Trustee and the company.

A plan of reorganization must also identify those classes which are impaired. An impaired class is one which is adversely affected by the filing of the bankruptcy. An example of a class that is not impaired would be one where the terms of a contract between the creditor and debtor remain completely unaltered in the plan of reorganization. A class that is not impaired is presumed to have accepted the plan of reorganization.

Lastly, the plan of reorganization must provide a method in which the plan will be implemented, including prohibiting non-voting stock from being issued and a provision for office and director selection consistent with the interests of the creditors.

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!

Bankrupty Law FAQ by a Sacramento bankruptcy attorney:

1. Can bankruptcy stop my creditors from harassing me?

Yes, they will! By law, all actions against a debtor must cease once the documents are filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments. Secured creditors such as banks holding, for example, a lien on a car, will get the stay lifted if you cannot make payments.

2. If my spouse does not want to file, will they be affected?

Your wife or husband will not be affected by your bankruptcy if they are not responsible (did not sign an agreement or contract) for any of your debt. If they have a supplemental credit card they are probably responsible for that debt. However, In community property states, either spouse can contract for a debt without the other spouse's signature on anything, and still obligate the marital community. There are a few exceptions to that rule, such as the purchase or sale of real estate; those few exceptions do require both spouse's signatures on contracts. But the day to day debts, such as credit cards, do NOT require both spouses to have signed.

3. How private is bankruptcy?

Bankruptcy filings are public records. However, under normal circumstances, no one will know you went bankrupt. The credit reporting agencies will record your bankruptcy and it will remain on your credit record for 10 years.
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4. The most common reasons for filing bankruptcy are: Loss of job, divorce, and injury or illness.

5. I filed before, can I file again?

A person can file Chapter 7 again if it has been more than 8 years since he or she filed the previous Chapter 7 bankruptcy. Also refer to: Chapter 13.

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 explains the non-judicial process of foreclosure...

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of default that is missed payments. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows pursuant to the California Civil Code of

Procedure:
A notice of sale must be: 1) recorded in the county where the property is located at least fourteen (14) days prior to the sale; 2) mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale; 3) posted on the property itself at least twenty (20) days before the sale; and 4) posted in one (1) public place in the county where the property is to be sold.

The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction.

The borrower has up until five days before the foreclosure sale to cure (repay) the default and stop the process.

The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The trustee may require proof of the bidders ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale. Filing for bankruptcy is a frequent method to stop a foreclosure sale.

Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption where they can pay the entire balance of the loan and keep the home.
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 asks and answers: What’s Bankruptcy?

When a borrower files bankruptcy, collection procedures that are usually followed are replaced by a different system of rules and laws. The filing of bankruptcy has a deep impact on the borrower, creditors, and others that have an interest in the borrower’s affairs.

Bankruptcy has different forms and is flexible to provide
different outcomes. Characteristics that make is different from the state laws used by creditors to collect owed monies are:

1. Bankruptcy is a system that is under federal law.

2. It’s a system that encompasses all of the borrower’s assets and debts.

3. The bankruptcy system affords relief to borrower by resolving and settling current debts while protecting creditors and guarding their interests.

4. Bankruptcy is administered by a specialized system consisting of bankruptcy court, government officials, and private persons such as attorneys

Although all assets are included, bankruptcy does allow for the protection of property most necessary for a borrower to start over. If a borrower does not have the income to repay debts the bankruptcy system and the borrower fully discloses all assets and liabilities then the bankruptcy system allows for a fresh start free from the predatory debt incurred in the past. Proper planning and responsible spending after bankruptcy can lead to a financial rehabilitation.

If you have questions regarding href="http://www.sacramentobankruptcylawyersblog.com/">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 sites some famous bankruptcies and bankruptcy fraud cases

The following are five cases of famous bankruptcies and bankruptcy fraud cases:

Atkins Nutrionals

The famous Atkins Diet that swept the in 2003 by Dr. Robert Atkins, had the answer to weight loss via his New Diet Revolution: cut the carbs, dummy! However, after a short run, and amidst much controversey over its founder's death (obesity? kidney failure?), combined with intense competition from other diet plans, the company to file for Chapter 11 bankruptcy protection. A famous bankruptcy. Though it did recover just under six months later, the diet would never approach the popularity it once famous enjoyed.

Edmonton Oilers Owner

Peter Pocklington, former owner of the Edmonton Oilers, was arrested at his Palm Springs-area home on charges of bankruptcy fraud for allegedly concealing assets during bankruptcy proceedings, according to a news release from the office of the United States Attorney, Central District of California.

Famous for owning the Edmonton Oilers, Pocklington filed for personal bankruptcy in August 2008, citing debts of approximately $19.6 million US. In his bankruptcy petition he said his assets totalled essentially only $2,900, inclduing $300 worth of clothing and shoes.

The U.S. attorney's release said the petition "raised suspicions that he was not disclosing all of his assets to the Bankruptcy Court."

Delta & Northwest Airlines

Both companies have histories dating back to the 1920s. Northwest was founded in 1926 with the intention of hauling mail for the US Post Office Department. Delta was founded in 1924 as a crop dusting company. Both enjoyed rises through the 70s and 80s, growing into two of the nation's top passenger airlines.

However, there were two aspects that wouldn't get better for the two companies: low-fare competition and fuel costs. Airlines like Southwest and JetBlue were gaining momentum, leaving the older companies with a much more even market. It was fuel costs that would ultimately lead the two companies to file for Chapter 11 bankruptcy protection on the same day, September 15, 2005

Covad Communications Group

Covad Communications Group was founded in 1996, and just a calendar turn later had launched the first commercially available DSL service. By 1999, they were offering these DSL services to local phone companies, which would then be passed on to their customers. The world of broadband Internet was growing, and Covad was at the helm.

However, their reign would not last long. Soon after the turn of the millennium, cable Internet services were introduced. While there were a few drawbacks -- an entire block was shard a fixed bandwidth -- cable Internet was generally much faster than DSL. This took some steam out of the DSL industry. When coupled with Covad's ongoing problem of unreliable installation and service, it spelled doom for the company.

They filed for Chapter 11 bankruptcy protection in August of 2001, citing $1.4 billion in debt. Some quick arrangements were made to temporarily satisfy its creditors and shareholders, which

Thinking Machines Corporation

Supercomputers were all the craze in the early 1980s, as consumers felt they were getting a glimpse of the future. Enter Thinking Machines Corporation, brainchild of MIT grad Danny Hillis.

It took Hillis quite some time to make his company profitable. It took a number of contracts from the Defense Advanced Research Projects Agency (DARPA), an agency of the US Department of Defense, to finally achieve profitability in 1989. However, there were cries of foul play from competing companies like IBM. When DARPA began more evenly distributing its contracts, Thinking Machines began suffering losses.

In August of 1994, the company filed for Chapter 11 bankruptcy protection, selling a majority of its to Sun Microsystems.

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 comments on nondischargable debt when filing bankruptcy

On too many occasions a person filing a bankruptcy is lulled into believing that filing of bankruptcy is the answer to all their debt problems that is until their attorney receives a letter from a creditor’s attorney describing the facts and circumstances of usage that meets the definition of fraud. A creditor who can prove fraud may be able to hold the debt as nondischarable and therefore unaffected by the bankruptcy discharge. Using large amounts of credit in a short amount of time, making no minimum payments, or stating income that is higher than what was actually made at the time the credit card application was filled out will increase the odds of a nondischargability complaint being filed. In my experience the greatest number of nondischarability suits occur where the filer operated a small business incurring large amounts of debt to keep the business going or was a contractor dealing with an irate property owner who didn’t feel the work was up to par.

The nondischarability complaint is prefaced with a letter describing why the credit card company believes it has a case for prevailing on a nondischarability suit. The letter is an invitation to settle in order to save both sides the time and effort in litigation. The more the creditor has to expend on litigation the less slack will they give you on settlement and collection. A call to the lender explaining that the usage was in good faith may persuade the creditor in dropping its suit.

The creditor’s next step is to institute an adversary proceeding and file the complaint. What commonly occurs in these situations is settlement of the debt at say $150 a month until the debt is paid off. The creditor requests and is granted a default judgment holding the debt as nondischargable. The settlement usually has a provision for execution of the nondischargable debt by applicable state law if a payment is missed.

Proper planning and the realization that a nondischarability suit could occur may help in preventing one from being filed or mitigating the amount of debt owed.

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 word on Pre Bankruptcy Transfer For Exemption Planning from a Sacramento bankruptcy lawyer

The United States Bankruptcy Code allows you to keep property or assets such as a car, home, land and other assets by claiming them as "exempt" under Federal and State bankruptcy exemption laws. Your attorney attempts to apply exemptions to the fullest extent possible to protect all of your property. Planning is necessary to convert non exempt property into property that can be exempted.

When assets are converted to a form of property that can be exempted on the eve of bankruptcy its been held by courts that any inference of a fraudulent transfer is insufficient to establish a fraudulent transfer which makes it possible for a trustee to avoid the transfer and use the property to repay debts owed to creditors.

A trustee will have to show more than just the conversion of assets and the filing of bankruptcy. Of the badges of fraud that are most relevant to exemption planning are 1) the financial condition of the filer both before and after the transfer; 2) the existence or cumulative effect of a pattern or series of transactions or course of conduct after incurring debt, the onset of financial difficulties; 3) the pendency or threat of suits by creditors; 4) and/or a general chronology of events and transactions under inquiry.

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 lawyer discusses transferring property after a bankruptcy

Transfer of real estate after a bankruptcy is filed may be cancelled by the trustee. Upon filing a bankruptcy a trustee is assigned to liquidate assets, if any. If a filer transfers property after filing then the trustee has the authority to recoup the property because is was transferred without the permission of the trustee. By recouping the property the trustee is able to preserve the property for possible liquidation and repayment to any creditors filing claims in your case.

Any recipient of property must turn the property over or pay its value to the trustee. If the recipient then again transfers the property with out any knowledge of the filer’s bankruptcy then the transfer is deemed to be in good faith and the property does not have to be returned to the trustee.

A trustee can use his post filing avoidance powers before the earlier of two years after the transfer or at the time the case is closed or dismissed.

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!