December 7, 2010

How Businesses Handle Bankruptcy

A Sacramento bankruptcy attorney describes how businesses often handle bankruptcy.

You may be surprised to learn that many of our favorite business brands have at one point gone through bankruptcy. This is probably because we like to think of bankruptcy as the end of something rather than as a period of reorganization. We think that when a business declares bankruptcy that they are done forever, however this is often not the case at all.

A bankruptcy affect business in a number of ways. It does create a public stigma that the business may not be doing so well and that you should possibly consider choosing a different company to do business with. However, the financial aspect of how a bankruptcy affect business is a little bit different.

Most business file bankruptcy under the way of using it where they are allowed to reorganize their business while they try to get their financial affairs straight. It is a way of keeping away the creditors long enough that they are able to get a little breathing room and start to bring in profits again. When they do this, they are able to start to use that new money to pay off the debts that put them into bankruptcy in the first place. Businesses often use bankruptcy to reorganize, not to put the final nail in the coffin.

If you would like more information on this topic or other bankruptcy topics, please contact our Sacramento office at 916.792.6025 or . We at Bankruptcy Law Firm can connect you with one our our experienced Sacramento bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, asset protection, discharging debt, etc. we can help! Please contact us to receive a free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting Sacramento.

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November 2, 2010

How Will Bankruptcy Affect My Business

A Sacramento bankruptcy attorney writes about how bankruptcy and business may be interrelated.

When you are running your own business, you will have established a business relationship with other businesses from whom you buy your business equipment and supplies. If you file for bankruptcy, your business will be affected basically through the lack of trust that your business suppliers will have about you and your business. You will lose many of the suppliers that you deal with when you file bankruptcy since many of their bills will not be paid. You will have to cut down on your own customers since you will have fewer supplies to work with until you manage to collect enough of your own debts to pay for additional supplies. That is the most significant way that bankruptcy affect business in the financial world. Businesses in bankruptcy usually go out of business since the bankruptcy judge usually orders liquidation of all business held assets. Bankruptcy affect business in many ways and not all are financial. Many people do not want to deal with a company that has gone through bankruptcy because they assume that bankruptcy shows a lack of skill in running a business.

At Bankruptcy Law Firm, we offer an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting Sacramento. If you need help regarding bankruptcy in Sacramento, contact us at 916.792.6025 or for a free consultation or visit us online at www.sagarialaw.com to request a free in person appointment at a Bankruptcy Law Firm office location nearest you. We can answer your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. We have bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation to quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento!

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May 20, 2010

Bankruptcy Fraud FAQ

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!

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May 19, 2010

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

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!

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May 10, 2010

Bankrupty Law FAQ

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!

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May 5, 2010

Famous Bankruptcy and Bankruptcy Fraud

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!

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April 27, 2010

On HAMP

A Sacramento bankruptcy attorney discusses HAMP

The Home Affordable Modification Program (HAMP) is designed to help financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear loan modification guidelines that the entire mortgage industry can use.

One of the primary steps towards loan modification under the HAMP is the trial loan trial period plan under the HAMP.

Borrowers who file bankruptcy during the trial period, but who make all of the required payments in a timely fashion and are otherwise in compliance with the Trial Period Plan remain eligible for a modification. The servicer and its bankruptcy counsel must work with the borrower and the borrower's bankruptcy counsel to obtain any required court approvals of the modification.

A borrower actively involved in a bankruptcy proceeding prior to being placed in the HAMP is eligible for the HAMP at the Servicer’s or Lender’s discretion. If a servicer provides an offer under the HAMP to a borrower that is involved in an active bankruptcy case, the servicer must work with the borrower or borrower’s counsel to obtain all necessary approvals from the bankruptcy court. The terms of the trial loan period will remain in effect after filing a Chapter 13 bankruptcy.

Many in Chapter 13 have found out the hard way that the agreement they had with their lender was rescinded as result of their filing for bankruptcy. Such rescission requires that the plan be amended in order to cure the amount of mortgage delinquency.

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!

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April 23, 2010

Bankruptcy Audits

An "FYI" from a Sacramento Bankruptcy Attorney: Your Bankruptcy Can And Might Be Audited by the US Trustee...

Individuals who file for relief under Chapter 7 or Chapter 13 are subject to audits under the authority of the US Trustee. At least one out of 250 Chapter 7 and Chapter 13 cases will be randomly selected for audit. In addition, other cases will be selected for audit.

You are required to provide some additional information and records and cooperate with the audit firm hired by the US Trustee and provide this information promptly. There is no cost to you for the audit, except for the cost of making copies of documents needed for the audit. The information that you provide in connection with your case is subject to examination by the Attorney General.

The audit firm will file a report containing the results of the audit. A copy of the report will be provided to your attorney. If the audit firm finds material misstatements of income, expenses, or assets the Clerk of the Bankruptcy Court will notify your creditors.

Failure to cooperate with the audit firm or failure to reasonably explain to the bankruptcy court any material misstatements contained in the audit firm's report may result in the dismissal of your case or in the denial or revocation of your discharge, and, possibly in referral of the matter to the US Attorney for criminal investigation.

Audits are serious but if you’ve chosen the right attorney he’ll 1) have all the required documents, 2) submit a bankruptcy petition that’s consistent with your assets and liabilities, 3) list your income correctly, and 4) know what to expect because he or she had been through it before.

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!


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April 22, 2010

Transfer of Property

A Sacramento bankruptcy attorney answers Why Must I Disclose To The Trustee Or Any Interested Creditor Whether I’ve Transferred Property In The Past 2 Years*?

A credit card creditor takes the risk that a borrower will have no property to satisfy its claim. But if a borrower does have valuables and attempts to conceal or illegitimately dispose of it then the law gives the out of luck creditor some ability to retrieve the property so that it can be used to satisfy the debt owed.

A creditor can avoid or cancel the transfer property because the law sees the transfer as an abuse having the effect of defeating the justifiable expectations of the creditor.

There are two grounds for avoidance of the transfer: actual fraud and constructive fraud.

Actual Fraud
Over the centuries courts of law have identified typical patterns of behavior that create a suspicion of fraud i.e. badges of fraud. Some badges of fraud include transfers of property to a friend, a business insider or someone with close family connections; concealment of the transfer just before litigation or in the face of impending collection activity; or the transfer of property was made just before a significant amount of debt was incurred.

Constructive Fraud
Where actual fraud goes to the intent to conceal property, constructive fraud is found where facts give rise to an unfair diminishment of the person’s estate and should not be allowed. Here there is no inquiry into the transferor’s state of mind. For constructive fraud to be established the following elements are required: 1) the transferor did not receive reasonably equivalent value in exchange for the transfer, and 2) the transferor was in a shaky financial condition at the time of the transfer. This ‘shaky financial condition’ is established in one of three ways:

1.Transferor was involved in or was about to engage in a business venture and the transfer left the debt holder with insufficient capital for the venture.

2.The transferor was about to incur debts wit the actual intention of not paying them when due.

3.The transferor was insolvent i.e. expenses exceeded income.

If you feel you may have engaged in these transactions in the past whether intentional or not talk to an experienced bankruptcy attorney.

*Some trustees will go back as far as four years.

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!

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April 19, 2010

Means Test Thresholds For All Cases Filed After April 1, 2010

A Sacramento bankruptcy attorney talks on Means Test Thresholds For All Cases Filed After April 1, 2010

Line 50, on Form 22A, commonly known as the Means Test, is your Disposable Monthly Income. This test determines whether you qualify for Chapter 7 or not. People not qualifying either do not file at all or file Chapter 13.

The first thing I determine is whether your debts are primarily consumer debts. So if more than ½ of your debts are related to your business (if you have one) then there’s no need to fill out Form B22A that is the means test.

Most people filing have debts that are primarily consumer debts which calls for your calculation of your gross income for the six months preceding and not counting the month you file. Those year to date figures listed on your pay statements are useful. If you’ve earned income from any other job or any other source for that matter then it’s income and has to be include. Talk to an attorney about any income derived from the Social Security Act.

After deriving your six month average income and then taking all the allowable deductions under Form 22A the monthly income for 5 years is less than $7025.00 or $117.08 per month Chapter 7 is not presumptively barred due to your income. If the monthly income based on the past 6 months of earnings before the month of filing is $11,725 or more (alternatively $195.42/month) then a Chapter 7 filing is income barred.

Disposable income more than $7025 and less than $11,725 (more than $117.08 and less than $195.42) is then compared to 25% of the total amount of your debts listed on Schedule F (where your credit cards, loan obligations, medical debt, and repo debt are listed). A disposable income that can pay 25% of your total Schedule F debt or more over 5 years will prevent a Chapter 7 filer from getting a discharge. If for example Line 50 comes out to $150.00 or $9000 over 5 years and all the debts on Schedule F total less than $36,000 then your Chapter 7 filing is presumptively income barred.

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!

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April 13, 2010

Your Car and Chapter 7 Bankruptcy

A Sacramento bankruptcy attorney says: Is Your Car Seriously Upside Down? Redeem It!

Consistent with the fresh start goals of consumer bankruptcy a person filing for Chapter 7 bankruptcy can redeem their cars and pay its actual value in full instead of the loan amount and interest. This makes sense if the car is worth substantially less than the loan you applied for.

The first step is to find the price that a car dealer would charge for your car in its current condition. Alternatively, you could find the value of your car in excellent condition and deduct the amount it would cost to make the car marketable. The cost would include interior and exterior detailing, mechanical repairs, and the cost of any replacement parts.

Next you will have to find financing that matches the actual value of your car. Typical financing companies will provide the loan amount at 26% interest. Yes that’s high but the amount saved by paying a lesser principal may save you money and even lower your payment.

If you can either afford to pay the actual value or get approved for a loan then it may make more sense to redeem the car even though the latter option is at a higher interest.

Ensure that the price is reflected in your bankruptcy petition in Schedule B and that it is your intention to redeem the car in the Statement of Intention.

The Bankruptcy Code requires a filer to either exempt the car in interest or it be abandoned from the bankruptcy estate. The latter requirement requires a request to the court to compel the standing Chapter 7 trustee to abandon it and a $150 fee to the bankruptcy court. Exempting the car is the better route because no additional fee is required.

Next its best to be proactive and draft a motion to redeem prior to filing the case. Make sure the motion to redeem includes the value of the car, whether its exempt or abandoned and that its for personal use.

The petition is now consistent with a motion to redeem. After filing and learning who the trustee is, file your motion to redeem.

Once the redemption is approved the actual value must be paid in full within 30 days.

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!

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April 12, 2010

Creditors ask for tax returns in a Bankruptcy?

A Sacramento bankruptcy attorney answers the question: What Should I Do If A Creditors Wants My Tax Return In Bankruptcy?

Answer: Comply, If The Request Is Timely.

A creditor in a Chapter 7 or Chapter 13 bankruptcy can request your tax return if they file a request with the bankruptcy court more then 7 days before the First Meeting of Creditors. Do not provide your tax return if your close to attending your 341 meeting or after. If the creditor’s request is timely then and the tax return is not given, the creditor can request the court to dismiss the bankruptcy. The court must dismiss unless you can give circumstances that support an inability to comply.

Savy creditors have done this and its best to comply and send the tax return to the requesting creditor. The main purpose is likely to create another hurdle and get an opportunity to dismiss the case. I’ve seen many a bankruptcy attorney get upset and try to fight the request. Its best to just comply and move on.

See Section 521(e)(2)(ii) for the exact language.

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!

April 7, 2010

Social Security Recipients

A Sacramento Bankruptcy Attorney Discusses Lack of COLA Increase for Social Security Recipients:

For the first time since cost-of-living-adjustments (COLA) went into effect in 1975, Americans will not receive a COLA adjustment to their social security benefits. That means that the 57 million people in America receiving social security benefits, including veterans, seniors and those with disabilities, will not receive an increase in benefits. There will be no COLA adjustment this year because of the decline in consumer prices across the board as determined by the Consumer Price Index (CPI).

Due to the difficult national financial situation, recipients of social security benefits are hampered to make ends meet. The Obama Administration has proposed a $250 per person stimulus payment for seniors, veterans, retired railroad workers and people with disabilities.

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!

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March 30, 2010

The Bankruptcy Filing of Six Flags

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!

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March 25, 2010

Charter Communications' Bankruptcy

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!

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March 8, 2010

Charter Communications Reemergence from Bankruptcy

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!

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February 24, 2010

Station Casinos’ Bankruptcy Chapter 11 Filing

Sacramento Bankruptcy Lawyer Discusses the Progress of Station Casinos’ Bankruptcy Filing

In today’s disastrous economic climate, even the gambling industry is not spared as observed by this Sacramento bankruptcy attorney. In July 2009, Las Vegas based, Station Casinos, Inc. filed for Chapter 11 bankruptcy protection. In the months leading up to this move, the company attempted to reach a prearranged agreement with all of its lenders. However, this did not come to fruition with the parent company holding on to $5.7 billion in debt. A Station official stated that the company’s 18 casinos are completely separate entities (although owned by Station), would not be a part of the bankruptcy filing and would continue to operate business as usual.

Station now joins other smaller casino companies that have also filed for bankruptcy recently, including the Las Vegas Tropicana and Trump Entertainment Resorts in Atlantic City. They all point the finger to the ongoing reduction in consumer and corporate spending as well as significant cuts in tourism. Recently, Station reported still growing third-quarter losses in the midst of its bankruptcy filing along with continued revenue declines. The company now faces a different problem in attempting to fend off a possible takeover by rival Boyd Gaming Group, who only earlier this year made an offer for some of Station’s assets. Station’s losses went from $23.4 million to $455.4 million, while experiencing a drop in revenue of 19%.

Station was founded in 1976 with one casino by the Fertitta family. It slowly expanded by catering to locals who worked or lived in Las Vegas before eventually opening luxury resort casinos off of the Las Vegas strip. The company was taken private in 2007 in a leveraged buyout by the founding family and an investment firm.

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!

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February 22, 2010

The Bankruptcy Filing by Champion Enterprises

Sacramento Bankruptcy Attorney Discusses Recent Bankruptcy Filing by Champion Enterprises

Champion Enterprises, a leader in the manufactured housing industry, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware (2009). The company was founded over 50 years ago in a small rural town in Michigan and later grew to encompass over 27 manufacturing facilities located throughout North America and Europe. The company provides factory-built housing and other structures throughout the United States, western Canada as well as the United Kingdom. Pursuant to the petitions filed with the bankruptcy court, Champion only included its U.S. operations in the bankruptcy filing and not those in Canada or the United Kingdom.

In a statement by its Chief Executive Officer, William Griffiths, the company had operated “for many years with a significant debt load.” To make matters worse, the “challenging economic conditions” were attributed in negatively impacting the company’s “capacity for debt.” In its papers, the company listed total assets of $576.5 million and total debt of $521.3 million. The company has stated that daily operations would continue through the restructuring.

As observed in Sacramento County and elsewhere, the construction industry has taken a hard hit through the current tough economic times. Champion indicated it had obtained a $40 million debtor-in-possession credit facility from lenders, some of which would be used for its operations in Canada and United Kingdom. The company has chosen to proceed with a sale process which would allow its lenders to participate after opting not to accept a third party offer. No matter what happens, the next few months will likely be precarious for the company as the housing and financial industries are not expected to improve.

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!

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February 18, 2010

Parking Co. of America Airports LLC Files Chapter 11

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

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

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


If you have questions regarding Bankruptcy in 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!

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February 16, 2010

Japan Airlines Files Chapter 11 Bankruptcy

Sacramento Bankruptcy Attorney Discusses Japan Airlines Recent Bankruptcy Filing

Asia’s largest air carrier, Japan Airlines, has filed for Japan’s version of Chapter 11 bankruptcy protection after months of speculation as to its fate. It is anticipated that approximately 15,600 jobs will be cut and the board of directors to resign. A state-backed Enterprise Turnaround Initiative Corporation (ETIC) will be supervising the restructuring and plans to inject a large sum of money into the failed airline. Japan’s government has issued statements that flights will continue as normal during this time. Following news of the filing, the airline’s shares fell to its lowest price in history. The airline is estimated to owe debts of approximately $25 billion.

Many see the air carrier’s filing as proof that no company is too big or too secure to fail. The airline has undoubtedly fallen from grace as Japan’s once-proud flagship carrier. It was founded in 1951 and owned by the state at first. Following World War II, the airline expanded quickly and ultimately became privatized in 1987. In recent years, the global economic downturn as well as medical fears have all led to reduced business for the airline. At the time of the announcement, United States carrier, Delta Air Lines issued a statement of support for Japan Airlines. Delta is seeking to have the airline join its SkyTeam partnership as it looks to expand its Aisan networks. Delta and its partners have offered $1 billion, including $500 million in cash in order to lure the airline away from its Oneworld Alliance with American Airlines.

If you have questions regarding Bankruptcy in 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!

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February 9, 2010

Ala Moana Center’s Reemergence from Bankruptcy

Sacramento Bankruptcy Attorney Discusses Ala Moana Center’s Reemergence from Bankruptcy...

Ala Moana Center, Hawaii’s largest shopping mall, emerged from bankruptcy on January 25, 2010 as a part of its’ owner, General Growth Properties’ restructuring. Ala Moana Center was among 96 properties owned by 180 General Growth debtors to emerge from bankruptcy with the final 16 loans totaling $2.1 billion that remain to be restructured expected to be completed over the next few weeks. General Growth filed for Chapter 11 bankruptcy in April 2009 in an effort to restructure 74 mortgage loans totaling $9.4 billion. The company owns or manages more than 200 shopping malls across the United States, including five properties in Hawaii. In total, all of its properties include more than 24,000 stores and about 200 million square feet of retail space.

The company filed for bankruptcy after amassing $27 billion in debt. It is the second largest mall owned in the United States and is the biggest real estate bankruptcy in United States history. The company also completed a four-year extension of a $155 million mortgage on the Caroline Place Mall in North Carolina. Other properties owned by General Growth that emerged from bankruptcy included Four Seasons Town Centre , Ward Centre, Ward Entertainment Center, Ward Gateway Village and Prince Kuhio Plaza.


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!

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February 1, 2010

Mesa Air Files Bankruptcy

A Sacramento bankruptcy attorney comments on the Mesa Air Chapter 11 filing...

On January 5, 2010, Mesa Air Group, Inc. filed for Chapter 11 bankruptcy protection. The company was founded in 1982 and is based in Phoenix, serving 127 cities in 41 states in North America. At the time of filing, it listed assets totaling approximately $975 million and debts of almost $869 million owed to as many as 10,000 creditors. Mesa Air was forced to seek bankruptcy protection after private negotiations with aircraft manufacturers and other parties broke down.
Due to its current financial crisis, Mesa Air has already parked 52 plans and has plans to eliminate another 25 from its fleet by May. Chairman and Chief Executive of Mesa Air stated that the airline’s primary purpose in filing for bankruptcy protection was so that it could break leases on some of the 130 aircraft in its fleet that it no longer needs. While the airline used to be considered one of the most innovative regional carriers, in recent years it has been weighed down by legal disputes and an unsuccessful joint venture in China.

The company will continue to operate through the restructuring, which was filed by Mesa for itself as well as 11 affiliated companies. Mesa’s Hawaiian joint venture was not include in the filing and will continue full operations. The company has long stated that it may seek Chapter 11 protection and is hoping by doing so will help to speed the settlement of a lawsuit with Delta, in which Mesa is seeking more than $70 million in damages. The lawsuit arose when Delta sought to terminate a contract before it ended in 2008.

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!

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January 1, 2010

Recent Bankruptcy Filings

Sacramento Bankruptcy Attorney reports on recent bankruptcy filings...

News sources recently reported that bankruptcy filings in Sacramento and the Central Valley were at an all time high in 2009. The US Bankruptcy Court in Sacramento released figures that indicate that bankruptcies in the area were up nearly fifty percent from 2008. 45,924 bankruptcy cases were filed in the Eastern district’s federal courthouses in Fresno and Modesto; in Sacramento alone approximately 29,000 cases were filed. One court clerk in Sacramento opined that they are busier than they have ever been in the past.

Among the main reasons for needing bankruptcy protection include home foreclosure, loss of jobs and/or pay cuts. News sources report that unemployment in the Sacramento region currently stand at about 12 percent.

A bankruptcy trustee at the US Bankruptcy Court in Sacramento states that he saw about 70 cases per weekly session in 2009; a significant increase from 2008 when the court was hearing about 30 cases from week. The Clerk at the court predicts that bankruptcy filings are likely to increase in 2010 due to the sagging commercial real estate market.

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!

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