Bankruptcy filings in the federal courts rose 31 percent in calendar year 2008, according to data released in March by the Administrative Office of the U.S. Courts. The majority of bankruptcy filings involve non-business debts. Chapter 7 alone, accounted for a 43% increase in bankruptcies for 2008. The prognosis for 2009 isn't looking much brighter!
If you are considering bankruptcy and do not know if you would make a good candidate for filing, please call us or your trusted legal advisor as soon as possible to obtain the necessary information you need to make an informed decision. 626.683.8869
Question #1:
My wife and I run small business and are going thru a divorce. She has asked if i am willing to take over the business and the $65k worth of debt that has accumulated. One of those debts is an SBA loan. I'd like to know if this type of loan can be included in a bankruptcy if I can't handle all of the debt?
Answer:
It can be included, but you'll have to see what it was secured by, if anything--the SBA may be entitled to those assets if it was secured. Also, if your wife agreed to be responsible for the loan as well, the lender will look to her for repayment unless she also files for a bankruptcy. Have an experienced bankruptcy attorney review the debts, assets and personal guarantees to see what the effects of a bankruptcy would be.
Question #2:
We are a sole proprietor business in construction. I am being sued in court, cannot afford to finish case with high lawyer fees. If I represent myself and lose will bankruptcy protect my home, my rental property, and the plaintiffs award approx. $70,000 be erased. My home has no equity, my rental is upside down- no equity. Will bankruptcy forgive the $70,000 altogether. My wife and I make approx $60,00 yr, right now that goes all mortgages, second on house, payback 401k loans. No construction business income at all, license not active since 2008.
Answer:
It sounds like you'd qualify for a Chapter 7 bankruptcy and be able to keep your real estate, but you'd have to have a bankruptcy attorney review your details to be sure.
There are some exceptions to the bankruptcy discharge that your plaintiff could try to claim in bankruptcy court, so these should be reviewed as well before you make a decision to file.
For more information, please contact Chris Johnson 626.683.8869 or cjohnson@rrjlaw.com
Wednesday, April 15, 2009
Wednesday, April 8, 2009
Economic Downturn and Divorce
A plunge in the net worth of your spouse may indefinitely postpone the "break-up" decision from being made any time in the near future. An increased chance of wading through the trauma, drama and financial torture of a divorce is apparently not the top thing on many "to do" lists.
Is it a benefit in this downer of an economy to remain together?
Issues that according to experts, typically destroy a relationship: fights over money, sex and children have a pretty good chance to increase in this current climate. So, will people hold tight to what they have, afraid of the unknown? Tethered to a situation that is draining them mentally and emotionally? Or will they decide that no matter what their financial situation is that they'll cut their losses and bolt for a different life?
What is clear is that today's tough times are affecting how divorces are being handled.
Take the housing market now, in some places prices have dropped about 40%, so who wants the house now? Now people are fighting over who has to TAKE the house.
People laid off from jobs have trouble paying child support. And some are divorcing and continuing to live together afterwards, because they can't afford two residences. Your "newly" ex-spouse as your roommate, good times!
What retirement funds? Credit card debt, anyone? The list goes on...
And some people are going through their divorce without attorney representation.
By the time couples come to us, they've pretty much run out of options.
Whether you can financially afford to get divorced now, you should still meet with an attorney and find out what legal options are available to you. When seeking a divorce, work with a financial advisor or a trusted 3rd party with the skills to make the best of your existing financial situation.
Keep in mind that it pays to know what you want and be willing to compromise ahead of time, prior to filing for divorce. Otherwise, divorces can be very expensive. And divorces in bad times tend to be uglier than divorces in good times.
According to calculations based on census data by the Web site Divorce360, a contested proceeding that goes to court, for a couple with at least one child can expect a divorce to cost anywhere from $53,000 to $188,000. The cost range does include attorneys’ fees, financial advice, counseling and real-estate costs for buying or renting separate homes.
Remember, if you are considering a divorce, the long-term cost of failing to seek competent legal advice can be much worse than a relatively inexpensive short-term cost of having an effective attorney representing you.
Please call or email us, we are here to help: cgreene@rrjlaw.com or 626.683.8869
Is it a benefit in this downer of an economy to remain together?
Issues that according to experts, typically destroy a relationship: fights over money, sex and children have a pretty good chance to increase in this current climate. So, will people hold tight to what they have, afraid of the unknown? Tethered to a situation that is draining them mentally and emotionally? Or will they decide that no matter what their financial situation is that they'll cut their losses and bolt for a different life?
What is clear is that today's tough times are affecting how divorces are being handled.
Take the housing market now, in some places prices have dropped about 40%, so who wants the house now? Now people are fighting over who has to TAKE the house.
People laid off from jobs have trouble paying child support. And some are divorcing and continuing to live together afterwards, because they can't afford two residences. Your "newly" ex-spouse as your roommate, good times!
What retirement funds? Credit card debt, anyone? The list goes on...
And some people are going through their divorce without attorney representation.
By the time couples come to us, they've pretty much run out of options.
Whether you can financially afford to get divorced now, you should still meet with an attorney and find out what legal options are available to you. When seeking a divorce, work with a financial advisor or a trusted 3rd party with the skills to make the best of your existing financial situation.
Keep in mind that it pays to know what you want and be willing to compromise ahead of time, prior to filing for divorce. Otherwise, divorces can be very expensive. And divorces in bad times tend to be uglier than divorces in good times.
According to calculations based on census data by the Web site Divorce360, a contested proceeding that goes to court, for a couple with at least one child can expect a divorce to cost anywhere from $53,000 to $188,000. The cost range does include attorneys’ fees, financial advice, counseling and real-estate costs for buying or renting separate homes.
Remember, if you are considering a divorce, the long-term cost of failing to seek competent legal advice can be much worse than a relatively inexpensive short-term cost of having an effective attorney representing you.
Please call or email us, we are here to help: cgreene@rrjlaw.com or 626.683.8869
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