December 9, 2010

Chapter 11: Individuals and Businesses

A Sacramento bankruptcy attorney explains the difference between an individual and a business filing for Chapter 11 bankruptcy.

Chapter 11 is the most common bankruptcy filing as it allows the debtor to remain in control of their possessions while they restructure their debt. To restructure a debt the value owed is reduced or eliminated. Both individuals and businesses are able to file for Chapter 11 bankruptcy protection but a couple main differences exist.

In individual Chapter 11 cases the Absolute Priority Rule is irrelevant. Unlike businesses, individuals are not required to repay all of their unsecured debt. For five years individuals are required to repay an amount equal to their disposable income. After five years the remaining debt is extinguished. In company Chapter 11 filings the business’s unsecured debt does not expire after five years.

The second main difference is the ability to handle the financial burden of the filing. Company Chapter 11 filings are expensive, but businesses are better able to handle the cost compared to individuals. Most company filers are multimillion dollar corporations. Despite that individual Chapter 11 cases are smaller than company Chapter 11 cases, the cost ranges from $10,000 - 30,000. Accordingly, individual chapter 11 filings are uncommon because individuals normally seek bankruptcy protection under Chapter 13 since the process is less expensive.

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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November 16, 2010

Chapter 11 Bankruptcy FAW

A Sacramento bankruptcy attorney discusses Chapter 11 bankruptcies.

Who is eligible to file Chapter 11 bankruptcy? Individuals may file, however this type of bankruptcy is usually reserved for businesses. A person or business entity must provide a list of all assets and debts. A bankruptcy trustee is assigned, and they will schedule a repayment plan to repay all debts. A business must then operate within the best interests of the creditors. This means that the creditors will have a say in how the business is managed. In the meantime, the debtor will receive a stay, which will cease collection efforts, allowing time for reorganization.

A successful Chapter 11 will allow a business to remain operating under its current owner(s). However, before deciding to file bankruptcy, it will be helpful to contact an experienced bankruptcy attorney. The attorney will help decide the best plan for the business, based on its current situation.

If you have a question regarding bankruptcy in the greater Sacramento area please contact us at 916.792.6025 or for a free consultation or visit consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about ankruptcy 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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November 11, 2010

When Should I Hire a Chapter 11 Lawyer?

A Sacramento bankruptcy attorney comments on when you should hire an attorney to assist with your Chapter 11 bankruptcy.

If you have lost control of your financial situation and cannot find a way to pay your bills then you need may need to file chapter 11 bankruptcy. Bankruptcy is a serious path that one should not walk alone. Hiring a professional will help you preserve your rights when filing bankruptcy.

If you cannot pay your bills and have over $200,000 in unsecured debt, $800,000 in secured debt, or both, you qualify for a chapter 11 bankruptcy. If you have less than these figures then you need a chapter 13 lawyer. Both programs help people get out of debt over time through court-assisted payment plans designed to reflect the real income of borrowers. Chapter 11 lawyers usually help businesses refinance their debt so that they can continue to operate the business and still pay their creditors. A chapter 13 lawyer helps individuals refinance their personal debt into more manageable payments.

Filing bankruptcy will damage your credit and is difficult to manage as an individual. Having an experienced legal professional will insure that you get the most benefits possible when filing bankruptcy. Chapter 11 is usually for business debt and chapter 13 is more orientated toward individual personal debt.

We can answer all 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, discharging a debt, asset protection, etc. If you need help regarding a bankruptcy in Sacramento, call us at 916.792.6025 or and we will be more than happy to offer you a free consultation over the phone. You can also fill out a free online evaluation at our website, www.sagarialaw.com, or request a free face to face appointment at a Bankruptcy Law Firm office location close to you. We have bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution needs.

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October 27, 2010

What is a Chapter 11 Bankruptcy?

A Sacramento bankruptcy attorney discusses Chapter 11 bankruptcies.

Chapter 11 bankruptcy allows a person or business to work with creditors when debts pile up too high. The following information about chapter 11 bankruptcy will allow you to determine what the needs are in order to satisfy your debt while remaining in business. The first recommendation to you is to get a lawyer. Chapter 11 is a complicated process, and your case could remain in court for years. File only once during a six-month time frame. Paperwork is extensive for Chapter 11; this will include a list of liabilities and assets, expenses and income, plus proof of credit counseling within 15 days.

There is more important information about chapter 11 bankruptcy that you should be aware of. Sitting down with your creditors to file reports regarding the financial situation will be required. You will file a payment plan within a few months, however after that your creditors will also be filing their own plans. Possibly the most difficult, is giving up control of the business. The business is still yours; however, filing chapter 11 bankruptcy allows you to be told how to run the business by the courts, creditors, IRS, and credit counselors.

We can answer all 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, discharging a debt, asset protection, etc. If you need help regarding a bankruptcy in Sacramento, call us at 916.792.6025 or and we will be more than happy to offer you a free consultation over the phone. You can also fill out a free online evaluation at our website, www.sagarialaw.com, or request a free face to face appointment at a Bankruptcy Law Firm office location close to you. We have bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution needs.

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October 15, 2010

What is Chapter 11 Bankruptcy?

A Sacramento bankruptcy attorney discusses Chapter 11 bankruptcies.

The United States Bankruptcy Code has a chapter labeled 11: cases filed underneath this chapter are typically referred to as a "reorganization" bankruptcy. A filing or petition with the bankruptcy course serving the local area where the debtor resides is the first step in the chapter 11 bankruptcy process. This process can either be voluntary or involuntary, depending on whether the creditors who file have the right to do so. Although most people who file for a chapter 11 bankruptcy do not have any money, they must provide at least $1000 to cover court fees, which are required with any bankruptcy case. During a voluntary petition, the courts will usually receive the debtor's basic information such as name, address, social security number, and the debtor's plan to file for bankruptcy. Once accepted by the courts, the debtor must then write a disclosure statement addressing a plan of reorganization. This means that the debtor will explain to the court what he or she plans to do with any remaining assets, liabilities, and business affairs so that they will not end up in the bankruptcy process again. Upon approval of the disclosure statement, the court will perform a confirmation hearing to determine whether to confirm the plan and whether or not to relieve the debtor of their debts.

Please do not hestitate to contact us at our Sacramento office by calling 916.792.6025 or for your debt resolution needs. You can receive a free consultation over the phone, or request a free in person appointment at a Bankruptcy Law Firm office nearest you. Please visit our website at www.sagarialaw.com and fill out a free online evaluation form to determine if you are a qualified candidate for bankruptcy. Bankruptcy Law Firm's team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff at Sacramento can assist you with all aspects of your bankruptcy case. We at Bankruptcy Law Firm can assist you 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. and we are happy to help! Our bankruptcy attorneys located throughout California and Oregon can assist you with your bankruptcy questions.

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August 17, 2010

What Is The Difference Between Individual Chapter 11 And Company Chapter 11?

A Sacramento bankruptcy attorney addresses: What Is The Difference Between Individual Chapter 11 And Company Chapter 11?

Small Business Chapter 11

In some smaller cases the U.S. trustee may be unable to find creditors willing to serve on a creditors' committee, or the committee may not be actively involved in the case. The Bankruptcy Code addresses this issue by treating a "small business case" somewhat differently than a regular bankruptcy case. A small business case is defined as a case with a "small business debtor." 11 U.S.C. § 101(51C). Determination of whether a debtor is a "small business debtor" requires application of a two-part test. First, the debtor must be engaged in commercial or business activities (other than primarily owning or operating real property) with total non-contingent liquidated secured and unsecured debts of $2,190,000 or less. Second, the debtor's case must be one in which the U.S. trustee has not appointed a creditors' committee, or the court has determined the creditors' committee is insufficiently active and representative to provide oversight of the debtor. 11 U.S.C. § 101(51D).

In a small business case, the debtor in possession must, among other things, attach the most recently prepared balance sheet, statement of operations, cash-flow statement and most recently filed tax return to the petition or provide a statement under oath explaining the absence of such documents and must attend court and the U.S. trustee meeting through senior management personnel and counsel. The small business debtor must make ongoing filings with the court concerning its profitability and projected cash receipts and disbursements, and must report whether it is in compliance with the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure and whether it has paid its taxes and filed its tax returns. 11 U.S.C. §§ 308, 1116.

In contrast to other chapter 11 debtors, the small business debtor is subject to additional oversight by the U.S. trustee. Early in the case, the small business debtor must attend an "initial interview" with the U.S. trustee at which time the U.S. trustee will evaluate the debtor's viability, inquire about the debtor's business plan, and explain certain debtor obligations including the debtor's responsibility to file various reports. 28 U.S.C. § 586(a)(7). The U.S. trustee will also monitor the activities of the small business debtor during the case to identify as promptly as possible whether the debtor will be unable to confirm a plan.

Because certain filing deadlines are different and extensions are more difficult to obtain, a case designated as a small business case normally proceeds more quickly than other chapter 11 cases. For example, only the debtor may file a plan during the first 180 days of a small business case. 11 U.S.C. § 1121(e). This "exclusivity period" may be extended by the court, but only to 300 days, and only if the debtor demonstrates by a preponderance of the evidence that the court will confirm a plan within a reasonable period of time. When the case is not a small business case, however, the court may extend the exclusivity period "for cause" up to 18 months.

Single Asset Chapter 11

Single asset real estate debtors are subject to special provisions of the Bankruptcy Code. The term "single asset real estate" is defined as "a single property or project, other than residential real property with fewer than four residential units, which generates substantially all of the gross income of a debtor who is not a family farmer and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental." 11 U.S.C. § 101(51B). The Bankruptcy Code provides circumstances under which creditors of a single asset real estate debtor may obtain relief from the automatic stay which are not available to creditors in ordinary bankruptcy cases. 11 U.S.C. § 362(d). On request of a creditor with a claim secured by the single asset real estate and after notice and a hearing, the court will grant relief from the automatic stay to the creditor unless the debtor files a feasible plan of reorganization or begins making interest payments to the creditor within 90 days from the date of the filing of the case, or within 30 days of the court's determination that the case is a single asset real estate case. The interest payments must be equal to the non-default contract interest rate on the value of the creditor's interest in the real estate. 11 U.S.C. § 362(d)(3).

Monster 13 or Chapter 11

Those debtors with greater than approximately 1 million in secured debts or approximately $366,000 in unsecured debts.

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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August 16, 2010

On Chapter 11 Bankruptcy

A Sacramento bankruptcy lawyer explains Chapter 11 bankruptcy points:

What is Chapter 11?

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy for corporations or those with debts that exceed the limits allowed in Chapter 13.

What are the requirements for Chapter 11?

Generally, a written disclosure statement and a plan of reorganization must be filed with the court. 11 U.S.C. §§ 1121, 1125. The disclosure statement is a document that must contain information concerning the assets, liabilities, and business affairs of the debtor sufficient to enable a creditor to make an informed judgment about the debtor's plan of reorganization. 11 U.S.C. § 1125. The information required is governed by judicial discretion and the circumstances of the case.

In a "small business case" (discussed below) the debtor may not need to file a separate disclosure statement if the court determines that adequate information is contained in the plan. 11 U.S.C. § 1125(f). The contents of the plan must include a classification of claims and must specify how each class of claims will be treated under the plan. 11 U.S.C. § 1123. Creditors whose claims are "impaired," i.e., those whose contractual rights are to be modified or who will be paid less than the full value of their claims under the plan, vote on the plan by ballot. 11 U.S.C. § 1126.

After the disclosure statement is approved by the court and the ballots are collected and tallied, the court will conduct a confirmation hearing to determine whether to confirm the plan. 11 U.S.C. § 1128.

In the case of individuals, chapter 11 bears some similarities to chapter 13. For example, property of the estate for an individual debtor includes the debtor's earnings and property acquired by the debtor after filing until the case is closed, dismissed or converted; funding of the plan may be from the debtor's future earnings; and the plan cannot be confirmed over a creditor's objection without committing all of the debtor's disposable income over five years unless the plan pays the claim in full, with interest, over a shorter period of time. 11 U.S.C. §§ 1115, 1123(a)(8), 1129(a)(15).

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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August 13, 2010

Who administers the Chapter 11 Bankruptcy?

A Sacramento bankruptcy attorney assists with the bankrutpcy filer's question: Who administers the Chapter 11 Bankruptcy?

Section 1107 of the Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a chapter 11 trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee.

These duties, set forth in the Bankruptcy Code and Federal Rules of Bankruptcy Procedure, include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U.S. trustee or bankruptcy administrator (discussed below), such as monthly operating reports. 11 U.S.C. §§ 1106, 1107; Fed. R. Bankr. P. 2015(a). The debtor in possession also has many of the other powers and duties of a trustee, including the right, with the court's approval, to employ attorneys, accountants, appraisers, auctioneers, or other professional persons to assist the debtor during its bankruptcy case.

Other responsibilities include filing tax returns and reports which are either necessary or ordered by the court after confirmation, such as a final accounting. The U.S. trustee is responsible for monitoring the compliance of the debtor in possession with the reporting requirements.

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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August 12, 2010

Who Else Plays A Role In Chapter 11 Bankruptcy?

Who Else Plays A Role In Chapter 11 Bankruptcy?

Creditors' committees can play a major role in chapter 11 cases. The committee is appointed by the U.S. trustee and ordinarily consists of unsecured creditors who hold the seven largest unsecured claims against the debtor. 11 U.S.C. § 1102. Among other things, the committee: consults with the debtor in possession on administration of the case; investigates the debtor's conduct and operation of the business; and participates in formulating a plan. 11 U.S.C. § 1103. A creditors' committee may, with the court's approval, hire an attorney or other professionals to assist in the performance of the committee's duties. A creditors' committee can be an important safeguard to the proper management of the business by the debtor in possession.

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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August 11, 2010

Is There A Discharge In Chapter 11 Bankruptcy?

A Sacramento bankruptcy lawyer answers: Is There A Discharge In Chapter 11 Bankruptcy?

Section 1141(d)(1) generally provides that confirmation of a plan discharges a debtor from any debt that arose before the date of confirmation. After the plan is confirmed, the debtor is required to make plan payments and is bound by the provisions of the plan of reorganization. The confirmed plan creates new contractual rights, replacing or superseding pre-bankruptcy contracts.

There are, of course, exceptions to the general rule that an order confirming a plan operates as a discharge. Confirmation of a plan of reorganization discharges any type of debtor – corporation, partnership, or individual – from most types of prepetition debts. It does not, however, discharge an individual debtor from any debt made nondischargeable by section 523 of the Bankruptcy Code. (1) Moreover, except in limited circumstances, a discharge is not available to an individual debtor unless and until all payments have been made under the plan. 11 U.S.C. § 1141(d)(5). Confirmation does not discharge the debtor if the plan is a liquidation plan, as opposed to one of reorganization, unless the debtor is an individual. When the debtor is an individual, confirmation of a liquidation plan will result in a discharge (after plan payments are made) unless grounds would exist for denying the debtor a discharge if the case were proceeding under chapter 7 instead of chapter 11. 11 U.S.C. §§ 727(a), 1141(d).

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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August 3, 2010

5 Tips For A Bankruptcy Reorganization Plan

A Sacramento bankruptcy attorney provides 5 Tips For A Bankruptcy Reorganization Plan

Bankruptcy Tip 1.
A reorganization plan will require the advice and direction of a competent attorney. Fees will be required. The first tip is to save for attorney fees and costs. A good attorney is worth it. Bargain shopping for bankruptcy is not a good idea.

Bankruptcy Tip 2.
Gather up all financial records like pay statements and bills. Disclosure is key in bankruptcy. Your income will determine whether you qualify for a Chapter 7 or Chapter 13 bankruptcy. Bills will determine what gets restructured and what gets wiped out.

Bankruptcy Tip 3.
Find your identifying information such as your driver’s license and social security card. They will be needed to present to your bankruptcy trustee after you file.

Bankruptcy Tip 4.
Have an open mind and listen to your attorney. Some of the advice that your attorney gives may be information about the requirements of bankruptcy or may be consistent with fair treatment given to creditors. For example, payments to family members within one year of filing are payments that can be avoided by the trustee and used to pay your creditors in an equal manner. Your chapter 13 may require you to pay your car payment to the trustee instead of the car lender. The attorney can’t do anything about these rules.

Bankruptcy Tip 5.
Maintain communication with your bankruptcy attorney’s office. Make sure that your bankruptcy attorney knows where you are during the pendency of your bankruptcy. Moving and switching phone numbers during or right before you file is not a good idea. The information contained in your bankruptcy may require further investigation and follow up.

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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July 21, 2010

How Many Bankruptcy Law Chapters?

A Sacramento bankruptcy attorney discuss bankruptcy chapters..

How Many Bankruptcy Law Chapters?
Where can you find the authority for all the different bankruptcy chapters?

The Bankruptcy Code consists of Chapter 7, Chapter 9, Chapter 11, Chapter 12, and Chapter 13. Each Chapter outlines a goal specific to the filer seeking debt relief.

What are the different Chapters?
Chapter 7 is a liquidation bankruptcy where available assets are liquidated in order to pay creditors. Chapter 9 bankruptcy is a debt adjustment plan for municipalities seeking relief from their creditors. With the housing values falling and budget deficits occurring every year, this Chapter is in the news often. Chapter 11 is a business reorganization where corporations can reject burdensome contracts and propose a plan of reorganization. Chapter 13 is a personal debt adjustment plan. Under 13 filers can propose a plan of reorganization that allows them to repay their debts over 3 to 5 years.

To determine which bankruptcy Chapter is right for you, schedule a free consultation with the attorneys of Bankruptcy Law 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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July 16, 2010

Can I Save My Business In Bankruptcy?

A Sacramento bankruptcy lawyer answers: Can I Save My Business In Bankruptcy?

Bankruptcy allows for the liquidation and reorganization businesses in order for the owners to start fresh. There are four types of bankruptcy that mainly depends on the form that the business entity decides to take. Chapter 7 is a liquidation bankruptcy, Chapter 13 is a personal bankruptcy, Chapter 12 is bankruptcy for farmers, and Chapter 11 is for businesses and individuals who do not qualify for Chapter 13.

Chapter 7 Bankruptcy

Although Chapter 7 is a liquidation bankruptcy owners of sole proprietorships or partnership small in enough in value or no value and with a small number of employees can file and keep their business. Traditionally solely owned businesses must be closed upon the filing of a bankruptcy. Trustees however allow business to operate because the value is low and monitoring the business would be burdensome to the bankruptcy estate. Trustees tend to request the owner to insure the trustee for liability during filing and ask that the filer file a request with the court to compel the trustee to abandon the business.

Chapter 13 Bankruptcy

A Chapter 13 is a reorganization where the sum of the whole is greater than its parts. That is creditor stand to recover more of its claims if the business is kept as a going concern rather than auctioning off all of the businesses parts.

A business cannot file a Chapter 13 bankruptcy but its owner can and the post filing profit is property of the bankruptcy estate and used to repay debts pursuant to a Chapter 13 plan. The trustee will examine the business to determine the income derived and the ability for the owner to fund the Chapter 13 plan. Like the Chapter 7 trustees, Chapter 13 trustees require the owner’s liability insurance to cover him or her.

Because most business generate more revenue than the typical wage earner the median income is of no effect. Couple this with case law that requires ordinary and necessary business expenses to be deducted after calculation of a current monthly income and you have an applicable commitment period of five years every time.

Chapter 12

Chapter 12 is reorganization for farmers and is much like Chapter 13. Chapter 13 trustees will commonly administer Chapter 12s.

Chapter 11

A Chapter 11 is a reorganization where the sum of the whole is greater than its parts. That is creditor stand to recover more of its claims if the business is kept as a going concern rather than auctioning off all of the businesses parts.

Businesses can file for Chapter 11 and reorganize themselves ridding itself of unneeded contracts and other commitments that pose to hinder reorganization. A plan and disclosure statements are proposed and put to a vote. Once the plan is confirmed the business is discharged on the condition it meet the requirements of the plan.

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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July 13, 2010

What Is A Monthly Operating Report?

A Sacramento bankruptcy attorney describes the monthly operating report in bankruptcy

What Is A Monthly Operating Report?

A monthly operating report is an accounting of a revenue and expenses for a particular month that must be filed each month during an open Chapter 11 filing by a business. Reports not filed leave the business open to dismissal or conversion to Chapter 7 by the U.S. Trustee.

The report is filed by the debtor in possession who assumes the role of a trustee and is responsible for the restructuring of the business. The debtor in possession is usually the principal or executive of the business and has the greatest knowledge of all operations and management.

The monthly operating report is designed to give all interested parties information about the debtor’s financial activity in order for them to monitor the likelihood of a successful reorganization.

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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July 6, 2010

Roseville, Is it possible to keep your Car in Bankruptcy?

Is it possible to keep my car in bankruptcy?

Generally speaking, it is possible to keep your car in bankruptcy. There are, however, several factors that come into play when determining whether it is possible to keep your car in bankruptcy. Some of the factors that play a part in answering whether you may keep your car in bankruptcy are:

1) What Chapter of Bankruptcy are you filing under?

2) How much equity is in your car?

3) If you still owe car payments, can you afford to continue making those car payments?

How will a Chapter 7 and a Chapter 13 Bankruptcy effect my ability to keep my car in bankruptcy?

Chapter 7: Chapter 7 bankruptcy is generally referred to as “liquidation.” The goal of a Chapter 7 bankruptcy is to discharge all of your unsecured debt. In return, your creditors will receive the value of your nonexempt assets. You have the option of reaffirming your loan obligations on your car in bankruptcy or of surrendering the car. You will get to keep your car in bankruptcy IF the amount of equity in your car is below the California exemption limit and if you will continue to make your car payments.

Chapter 13: Chapter 13 bankruptcy is generally referred to as “reorganization.” The goal is to place you on an affordable repayment plan. Generally speaking, you get to keep all of your assets, including your car, in bankruptcy chapter 13. You must pay off all secured debt on your car over the life your plan. You must also continue to make your monthly car payment in order to keep your car in bankruptcy. One of the benefits of filing a chapter 13 bankruptcy is that you may get to “cram down” the car loan amount to the value of your vehicle. Please consider talking to your Roseville bankruptcy attorney about this option.

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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June 28, 2010

How do I keep my personal property in bankruptcy?

A Roseville bankruptcy attorney explains to Roseville debtors how to keep personal property in bankruptcy?

How does a Chapter 7 Bankruptcy work?


The goal of a Chapter 7 bankruptcy is to wipe out all of your unsecured debt. The way it works is: any assets that you have (such as house, cars, clothes, jewelry, furniture, etc.) which are not covered by California exemption laws (if you reside in CA) are used to repay your creditors.

What property do I get to keep in a Chapter 7 Bankruptcy?
You will get to keep all of your real property and personal property in bankruptcy IF all of the property is covered by California exemption laws. California exemption laws allow you to keep up to a certain value of your home, your furniture, your jewelry, your vehicle, etc. Your assets include both real property and personal property in bankruptcy. If you don't have too many assets, then most likely you will get to keep all of your personal property in bankruptcy. California has two sets of exemption laws. You should consult with attorney to get a better idea of whether or not your assets will be covered by the exemption laws so that you can determine whether you will get to keep all of your personal property in bankruptcy.

How does a Chapter 13 Bankruptcy work?

A Chapter 13 bankruptcy is basically a repayment plan. It generally does not involve letting go of either real or personal property in bankruptcy. A Chapter 13 repayment plan can last anywhere from three (3) years up to five (5) years, depending on your income.

What property do I get to keep in a Chapter 13 Bankruptcy?

Generally speaking, if you qualify for a Chapter 13 bankruptcy and if you make all of your plan payments on time, then you should be able to keep all of your real and personal property in bankruptcy. Consult with your attorney to determine which Chapter of bankruptcy is the best option for you.

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 28, 2010

Chapter 11 Bankrutpcy Code

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!


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May 26, 2010

Reorganization and Business Formation

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!

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May 13, 2010

Which Bankruptcy Chapter is Right for Me?

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!

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May 11, 2010

Chapter 11 plan of reorganization

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!

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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.
.
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 6, 2010

What Is Bankruptcy

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 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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May 4, 2010

Nondischargable Debt When Filing Bankruptcy

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!

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May 3, 2010

Pre Bankruptcy Transfer For Exemption Planning

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!

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May 2, 2010

Transferring Property After A Bankruptcy

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!

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April 29, 2010

Car Loans and Bankruptcy

A Sacramento Bankruptcy Attorney explains cross
collateralization

People like credit unions because they fit within the fabric of the community and make you feel warm and welcome when you make a visit in contrast to banks. Another important contrast with banks are cross collateralization clauses found in credit union automobile contracts.

Unfortunately these clauses are in the small print in your automobile contracts that nobody bothers to read.

Cross collateralization is when collateral such as a car is used for collateral for all other loans with the lender. So if a credit union member has a car loan and a credit card balance then, by virtue of the cross collateralization clause found in the automobile contract, the car loan is not paid off until both the car loan and the credit card balance is paid off.

This means that when people with car loan and loans with a credit union file for Chapter 7 bankruptcy and decide to reaffirm the car they are reaffirming not only the payoff amount for the car loan but the credit card balances with the credit union. This may come as a surprise to some people who think their credit cards have been discharged.

Those only paying the car loan but not the credit cards issued from the same credit union are subject to having the car repossessed.

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 21, 2010

The US Trustee

The US Trustee (UST) is an officer of the Justice Department. There are currently 21 USTs for the nation. Their territories often overlap several judicial districts. USTs are appointed by the Attorney General to five year terms.

The primary roles of the UST are to monitor the progress of the Chapter 11 cases (especially those where there is little creditor involvement) and appoint and supervise case trustees when the law requires a trustee or the court has ordered a trustee to be appointed. The UST is also charged with monitoring employment applications of professionals, fee applications, and the activities of the creditors' committees. On rare occasions, the UST will act as the case trustee.

With the exception of their role as supervisor of trustees, the role of the UST is essentially one of bringing matters before the court, just as any other litigant. Thus, the UST may object to a fee application as being excessive or move that a Chapter 11 case be converted because the debtor lacks the ability to reorganize. It remains the function of the court to rule on such matters. Although there is some authority to the contrary, the UST probably has the power to appeal court rulings.

As an official of the executive branch of government, the UST is not part of the rest of the bankruptcy court system which as an adjunct of the district court is part of the judicial branch. Many bankruptcy judges have resisted the idea of giving such a large role in the judicial process to a Justice Department official. Since most of the UST’s powers are observatory with final decisions resting with the judges, the effectiveness to a large degree depends on the relationship with the judges. In districts where the courts and the UST have an exceptionally good relationship the UST may prevail so often that litigants will almost automatically accede to the USTs suggestions or directions, giving the UST great practical ability in bankruptcy cases. In districts where the courts and the UST have a strained relationship, the UST may prevail so infrequently that it is ignored.

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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 14, 2010

A Sacramento Mom Co-Signs on her Daughter's Car, then Files Bankruptcy

A Sacramento bankruptcy attorney answers a bankruptcy liability question...

I was recently asked by a potential client in my Sacramento bankruptcy law practice, the following: "I was recently laid off from my job and need to file for bankruptcy. I have a significant amount of credit card debt that I am really seeking from relief from. The only reason I might not file for bankruptcy is because I am the co-signor on my daugher’s vehicle. Can I still file for bankruptcy without messing her credit up?"

Yes, you will be able to still file for bankruptcy without messing your daughter’s credit up. What will happen in your bankruptcy petition is the debt will be discharged against you. But as long as your daughter continues to make her car payments, they will not take the car away from her. In the event your daughter can no longer make the payments and she has the car re-possessed, since you filed for bankruptcy on this debt, you will not be liable and the lender will not be able to sue you.

The other option is for you to re-affirm the debt, however you should consult with your attorney prior to entering into any reaffirmation agreements.

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 9, 2010

The Reaffirmation Procedure

A Sacramento bankruptcy lawyer chats about the reaffirmation procedure

Liens are charge on your car up to the amount of the loan. Bankruptcy whether it be a Chapter 7, 13, 11 or 9 will not release the lien from your car. Liens survive bankruptcy. Filing will relieve you of your personal obligation to pay back the loan supporting the loan. The lender however will be able to repo the car due to its lien. In order to keep the car you must keep the debt. A lot of thought should be put before reaffirming your car.

Keeping the car you’re financing after bankruptcy depends on several factors. You should analyze these factors and weigh the pros of keeping the car versus letting it go. First consider the amount and the interest rate. A high principle cuts against reaffirming your car loan while a low amount is sure to be paid off quickly. Likewise a high interest rate is another deterrent that contravenes a ‘fresh start’.

Next regardless of the budget listed in your bankruptcy petition draw up a current budget at the time you get the reaffirmation agreement. It may be significantly positive since you’re not paying the credit cards. If you find that you’re monthly income after expenses and deductions is greater than or equal to the car payment then you know you’re able to handle the financing agreement post bankruptcy.

If the financed car is your only means of transportation that definitely weighs more heavily than a high principle and/or high interest rate because its your only means of transportation.

Many attorneys will not sign the reaffirmation agreement thinking its in your best interest not to reaffirm. They’d better hope the car doesn’t get repossessed. You can file a pro se reaffirmation by filling out the reaffirmation agreement and sending it to the lender’s attorney who will then file it with the court. A reaffirmation hearing will be set where the judge assigned to your case will examine the terms of the loan and your budget and determine whether its in your best interest or not.

Lenders usually recognize that judicially denied reaffirmations represent the bankruptcy filer’s best efforts to reaffirm and do not repo the car even though they don’t have a reaffirmation agreement approved.

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 8, 2010

Check The Correct Box on the Statement of Intentions (Form 8)

A Sacramento bankruptcy attorney discusses foRM 8...

This entry will take a step by step approach on the reaffirmation process of a financed car in a Chapter 7 bankruptcy.

A Chapter 7 filer in their petition must indicate on the Statement of Intention (Form 8) they are going to reaffirm their vehicle by checking the box labeled reaffirm. They must also list the creditor holding title. This lienholder must also be listed in Schedule D – Secured Debts.

If the property securing the loan is personal property and an individual chapter 7 debtor fails to indicate in the statement that he or she either will redeem the property or enter into a reaffirmation agreement the automatic stay is automatically terminated and the property is no longer receives protection of the bankruptcy filing. The financing company may repossess without having to file any request with the bankruptcy court.

Stating ‘retain collateral and continue to make payments’ on a car is the equivalent of not stating any intention and protection will automatically lapse 30 days from the filing of the bankruptcy petition.

In conclusion make sure you check on the boxes on Form 8 with respect to your car. Never try to retain and pay if that’s your intent.

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 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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April 5, 2010

Chapter 13 Confirmation Hearing

A Sacramento bankruptcy attorney comments on the Confirmation Hearing for Ch. 13

Northern California debtors who file Chapter 13 bankruptcy will want to understand the confirmation hearing process. Basically in a Chapter 13 a judge must approve your Chapter 13 plan. This approval takes place at the confirmation hearing. Here, a judge will address any objections to your plan raised by creditors.

Unlike the creditors’ meeting, the confirmation hearing will be run by a judge. For those debtors in Sacramento who are terrified at the prospect of sitting in front of a judge, if you are represented your attorney usually attends solo. If, however, a debtor is self represented they must appear. Since judges like efficiency they generally call cases that are uncontested or fairly straight forward first.

Debtors in Sacramento may wonder why a confirmation hearing is required. The meeting allows a judge to evaluate your plan, and inquire whether or not you can make your payments. In addition, it allows the judge to ask creditors specifically about their objections, hear your response, and make a ruling. If your plan needs to be amended you probably will be allowed an opportunity to comply. Otherwise, if it’s obvious you can’t afford your plan your case may be 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!

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March 31, 2010

Personal Finance Course in Bankruptcy

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

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

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

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

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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 27, 2010

Fraudulent Debt in Bankruptcy

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

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

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

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

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

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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 18, 2010

Debts to Family Members when Filing Bankruptcy

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

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

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

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

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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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March 4, 2010

Credit Card Usage Prior to Filing for Bankruptcy

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

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

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

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

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February 26, 2010

Credit Counseling when Filing Bankruptcy

Sacramento Bankruptcy Attorney Discusses Credit Counseling Within a Bankruptcy

Pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, in order to file an individual bankruptcy, you must obtain credit counseling from a government-approved organization within 180 days before filing. Furthermore, in order to receive your discharge, you must also receive a debtor education course during the course of the bankruptcy. While there are extremely limited exceptions to both courses in certain situations such as exigent circumstances or the U.S. trustee’s determination that there are insufficient credit counseling agencies available, for the most part all people who intend to file bankruptcy must comply. The two courses also cannot be taken at the same time.

In the initial course, an evaluation of the individual’s personal financial situation should be conducted, as well as a discussion of possible alternatives to bankruptcy including the formulation of a personal budget plan. Typically, this course runs anywhere between 60 to 90 minutes and can be completed in person, on the phone or online. The fee is somewhere in the neighborhood of $50.00 although if you cannot afford to pay this, you should request a fee waiver from the counseling organization before the session begins. Upon completion of the course, the credit counseling organization should issue you a certificate which must be submitted to the Court prior to or in conjunction with your bankruptcy filing.

The second course in the bankruptcy process is a debtor education course which should cover topics such as developing a budget, managing your finances as well as using credit wisely. As with the credit counseling course pre-filing, this course may be taken in person, on the phone or online with an approved provider. The duration and cost is roughly the same as the first course with the possibility of requesting a fee waiver in advance if you are unable to afford it. And as with the first course, you should receive a certificate upon completion of this course.

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 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 13, 2010

Rise in Bankruptcy Among Middle Class Citizens

Sacramento Bankruptcy Attorney notices the rise in bankruptcy among the middle class...

Several news sources have reported a significant rise in personal bankruptcy filings last year.
As a Sacramento Bankruptcy Lawyer, I know that at least 1.4 million Americans filed for bankruptcy last year; many of them, your average, hard-working middle class citizen who had no other alternative after losing a job, seeing their business suffer, or facing foreclosure.

One local resident, Frank M. states that he found himself $100,000 in credit card debt, after losing his job 2 years ago and being unable to find a new one. He had cashed out his retirement to make ends meet, and when that was depleted, he turned to credit cards. He tried to consolidate his debt and work out a repayment plan through a debt relief agency but the plan did not work out. Feeling like he had no other alternative, he sought the assistance of a bankruptcy attorney.

Like Frank, many people that seek the assistance of bankruptcy attorneys these days were people who were living comfortably just a couple of years ago. These are hard-working people who could have never imagined that they would be filing for bankruptcy, and are extremely embarrassed and/or conflicted about not being able to pay their debts back. These are people who got in deep debt just because they were trying to make ends meet each month. Attorneys across the country say that they rarely consult an individual who had run up huge debt with no intention of paying it back.

People should be aware that filing for bankruptcy does not equate a moral failure on their part. It's actually an opportunity to clean the slate and start over.

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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