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
Showing posts with label Chris Johnson. Show all posts
Showing posts with label Chris Johnson. Show all posts
Wednesday, April 15, 2009
Monday, March 30, 2009
Probate, Trusts, Wills & Estates
Someone said to me recently, "Death is a recession-proof business." Interesting thought. And one that brings to mind the two things that you can count on, "taxes and dying"....yep!
There are hundreds of versions of what we can expect with "death".
Many people have not prepared or planned properly for this inescapable event. Unfortunately, it isn't so much the person off to the pearly gates that has the issue, it is instead the family left behind.
Probate means to "Prove the will". It is simply the formal legal process one goes through to obtain approval from the responsible court, that a will is authentic and accurately represents the wishes, or "will," of the deceased.
If you prepare and create an estate plan, YOUR FAMILY can bypass this procedure. Today we have a few questions related to the subject.
Chris Johnson Esq. answered the following submissions:
My sister is the executor of my father's will. She and I are the only beneficiaries. We have been going thru the probate process. She received the letters from the Court to act as executor with full authority in April 2008. We have since completed and submitted all the appraisal paperwork and are coming up on the 1 year mark where the Court wants a status update. What does this paperwork entail? Also, my sister and I agreed to share all the expenses on the property in the estate, taxes etc so she went ahead and distributed the cash and stocks and other requests per the will last december. We didn't notify the court. Was this a mistake. Can I submit it now? If we decide to file a petition for final distribution, how do I let the court know that some of the assets were already distributed. I am totally confused as to whether this was a mistake and whether it can be rectified. Please help.
Answer:
The status update would give the court some detail regarding what has happened in the estate and when it's ready to be closed.
It is a violation to distribute the assets without a court order to do so, but it does happen--you can show the court what was distributed, along with a consent and waiver from both of you, and a petition for distribution of the rest of the assets. As you are the only beneficiaries who would be affected by the distribution, the court would likely view it as a "no harm, no foul" situation.
You'll want to get something filed in the right format, though, as courts often set "Order to Show Cause" hearings with subpoenas to appear if nothing's filed before the one-year deadline.
Next submission:
i have a document with my brother's property. He has 2 stores and writes owner Nick P.(my brother), but it has an owner name too of spouse, Maria P. (no children)
With no will........my brother died last week .......everything goes to spouse ??? or i can take something????????
how i will know if property is separate..??? i live in europe he died in california
Answer:
The answer depends on the agreements you have with your brother, along with the titling of the assets--an attorney can review the specific documents and give you a more specific answer. It's also possible you could have a creditor's claim against your brother's estate, but collecting on this also depends on how his assets were titled.
If you need help with estate planning or are in the midst of a probate process with legal questions, please contact us. We are experienced and can help you now. 626.683.8869 or cjohnson@rrjlaw.com
Sunday, March 15, 2009
Questions and Answers on Bankruptcy
Today, we are posting Questions with Answers on Bankruptcy by Chris Johnson. Please continue to ask questions about this topic here on our blog. You can also check Chris out at: http://blog.probate-litigators.com
Question:
Can you filed bankruptcy on items that have been charged off?
Answer:
Yes
Question:
If my contractor filed bankruptcy in the last week, will the court
hold my insurance money, which is to rebuild and is in both our
names? And what if my contractor uses a different construction
name than he did to file bankruptcy, does that make a difference
since it is in fact the same personal name at the end.
Answer:
It's difficult to say without seeing the specifics of your situation, but if the contractor was holding money that didn't belong to him (your insurance money), you may be able to claim that as being outside the bankruptcy estate. If the amount is significant, I'd recommend using an attorney experienced in these matters, as deadlines in bankruptcy court are short and the rules are many.
Question:
My boyfriend is currently in jail and I've been paying for his car expenses (the monthly loan, insurance, and DMV registration). The car loan is in his name only. We've only had the car for a year and the payoff amount is around $30,000. So there is still 4 years left to pay on the loan. We don't know yet how long he will be incarcerated (case is pending), but obviously he isn't working and isn't paying his credit card debt or his personal loans (which total about $25,000). First question is should he file bankruptcy now, or wait? Second question is if he does file for bankruptcy, will I be able to keep the car if I continue making payments on it? Thank you.
Answer:
You'd have to negotiate a transfer of the loan to yourself if you wanted to pay off and keep the car, or a new loan to pay off the lender and put the car in your name--it may be easier to get a different car.
Regarding bankruptcy, it may be a good idea in his situation--the bankruptcy can go through even if he's incarcerated. It will require some extra coordination with the trustee assigned to the case, but it can be done. It would be worth a bankruptcy attorney's review of his circumstances to discuss the pros and cons of filing a bankruptcy case.
Question:
I am a 79 year old Grandmother who has accumulated 50K+ of CC debt over the past 20 years because of medical expenses and loss of job. I receive about $1,000.00 per month in SSI and can no longer afford the CC payments. I don't have any savings or retirement, own a home, car, or anything of substantial value. A Credit Counselor/Consolidator that was referred by one of her Credit Card Company's has advised me to file bankruptcy. Should I file bankruptcy?
Answer:
You are probably judgment-proof, meaning that if you just stop paying your credit cards and do nothing, there's probably nothing they can take from you and it will stop the creditors' collection attempts/ This would be the main benefit to your filing a bankruptcy. If your assets were to increase later, you'd also be protected.
Question:
I filed bankruptcy back in 2003 my common law partner was not in the paper work. Now creditors are after him and they are going to take him to court does he have to file separately? And can he still fill even though creditors have filled a law suit?
Answer:
First, although it wouldn't make a difference in this case, California does not have common law marriage or common law domestic partnerships. Certain obligations may arise after a long time together, but not under any "common law marriage." Thus, you may want to get legal advice concerning this issue sometime, as you may not have the rights and responsibilities you think you have.
That said, if your partner had co-signed for the debts, he will still be responsible for them even if you filed bankruptcy. So, he'll either have to pay them, file bankruptcy or negotiate a lower payoff with the creditors. First, though, you'll want to see proof from the creditors that he actually was a co-signer at some point and that he is legally responsible.
You can contact Chris directly at cjohnson@rrjlaw.com or 626.683.8869
Question:
Can you filed bankruptcy on items that have been charged off?
Answer:
Yes
Question:
If my contractor filed bankruptcy in the last week, will the court
hold my insurance money, which is to rebuild and is in both our
names? And what if my contractor uses a different construction
name than he did to file bankruptcy, does that make a difference
since it is in fact the same personal name at the end.
Answer:
It's difficult to say without seeing the specifics of your situation, but if the contractor was holding money that didn't belong to him (your insurance money), you may be able to claim that as being outside the bankruptcy estate. If the amount is significant, I'd recommend using an attorney experienced in these matters, as deadlines in bankruptcy court are short and the rules are many.
Question:
My boyfriend is currently in jail and I've been paying for his car expenses (the monthly loan, insurance, and DMV registration). The car loan is in his name only. We've only had the car for a year and the payoff amount is around $30,000. So there is still 4 years left to pay on the loan. We don't know yet how long he will be incarcerated (case is pending), but obviously he isn't working and isn't paying his credit card debt or his personal loans (which total about $25,000). First question is should he file bankruptcy now, or wait? Second question is if he does file for bankruptcy, will I be able to keep the car if I continue making payments on it? Thank you.
Answer:
You'd have to negotiate a transfer of the loan to yourself if you wanted to pay off and keep the car, or a new loan to pay off the lender and put the car in your name--it may be easier to get a different car.
Regarding bankruptcy, it may be a good idea in his situation--the bankruptcy can go through even if he's incarcerated. It will require some extra coordination with the trustee assigned to the case, but it can be done. It would be worth a bankruptcy attorney's review of his circumstances to discuss the pros and cons of filing a bankruptcy case.
Question:
I am a 79 year old Grandmother who has accumulated 50K+ of CC debt over the past 20 years because of medical expenses and loss of job. I receive about $1,000.00 per month in SSI and can no longer afford the CC payments. I don't have any savings or retirement, own a home, car, or anything of substantial value. A Credit Counselor/Consolidator that was referred by one of her Credit Card Company's has advised me to file bankruptcy. Should I file bankruptcy?
Answer:
You are probably judgment-proof, meaning that if you just stop paying your credit cards and do nothing, there's probably nothing they can take from you and it will stop the creditors' collection attempts/ This would be the main benefit to your filing a bankruptcy. If your assets were to increase later, you'd also be protected.
Question:
I filed bankruptcy back in 2003 my common law partner was not in the paper work. Now creditors are after him and they are going to take him to court does he have to file separately? And can he still fill even though creditors have filled a law suit?
Answer:
First, although it wouldn't make a difference in this case, California does not have common law marriage or common law domestic partnerships. Certain obligations may arise after a long time together, but not under any "common law marriage." Thus, you may want to get legal advice concerning this issue sometime, as you may not have the rights and responsibilities you think you have.
That said, if your partner had co-signed for the debts, he will still be responsible for them even if you filed bankruptcy. So, he'll either have to pay them, file bankruptcy or negotiate a lower payoff with the creditors. First, though, you'll want to see proof from the creditors that he actually was a co-signer at some point and that he is legally responsible.
You can contact Chris directly at cjohnson@rrjlaw.com or 626.683.8869
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