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Bankruptcy Archives

Bankruptcy is an Option for Businesses in California and Beyond

types-of-bankruptcy.jpgBankruptcy is one of those subjects that most people don't know much about because they don't want to know about and even tune out information or avoid the topic altogether. It is a shame because filing bankruptcy can help individuals to jettison debt or craft a viable plan to repay debts. In the Bay Area, a person can begin the process by working with an experienced San Jose bankruptcy attorney to file a petition with the bankruptcy court.

Preference Actions: Contemporaneous Exchange for New Value Defense

bankruptcy.jpgA preference action refers to a lawsuit brought under the U.S. Bankruptcy Code in which a creditor or bankruptcy trustee seeks to get pre-bankruptcy payments reversed. Under U.S. law, bankruptcy courts can automatically review all payments made by the filing business, to any party, within the last 90 days before the bankruptcy petition was filed. Courts have the authority to force individuals and companies that received inappropriate payments to compensate damaged creditors. In this post, our top-rated San Jose business bankruptcy attorneys discuss one of the common defenses that can be used to fight against preference lawsuits: contemporaneous exchange for new value.

Understanding a Secured Creditor's Right to 'Adequate Protection'

debt.jpgA secured creditor is a lender that takes on collateral in exchange for extending credit. If the debtor, for whatever reason, is unable or unwilling to repay their debts to a secured creditor, then the lender can take legal action to obtain the specific asset for which they possess collateral.

What Is a Voidable Preference (Unfair Preference)?

unfair preference.jpgTypically, there are warning signs that indicate that a business will soon file for bankruptcy protection. When creditors begin to see these signs of immense financial distress, they tend to dramatically intensify their collection efforts. Of course, this makes sense. After all, creditors want to try to ensure that they are able to get paid back while there is still money available.

When a Creditor Violates an Automatic Stay

debt-collector.jpgCalifornia businesses that file for bankruptcy protection are generally granted an automatic stay. In simple terms, an automatic stay provides the filing business with temporary relief from debt collections efforts. This includes relief from creditors that are seeking enforcement a judgment, foreclose on a property or the collection of debt in any other manner. Creditors are legally obligated to put all of those collection efforts on temporary hold. This is extremely useful for the filing company as it gives that business some space to devise a workable restructuring plan. However, creditors do not always abide by the automatic stay. If your company has been granted an automatic stay, and a creditor is continuing to take collection action, you need to speak to an experienced San Jose business bankruptcy lawyer immediately. Your company's legal rights are being violated.

Rebuilding credit after bankruptcy by applying for a credit card

You've filed for bankruptcy in California. The last thing you may want to be thinking about right now is accruing more debts. However, if the court approved your petition for a Chapter 13 bankruptcy, it could take up to five years for you to complete the debt repayment plan. During that time, there's a good chance you'll discover you need some sort of credit before your repayment plan is complete.

What a Recent Supreme Court Decision Means for Creditors

creditors-rights.jpgOn May 16th, 2016, the Supreme Court of the United States issued an important opinion in the case of Husky International Electronics, Inc. v. Ritz. While this case may not have received as much media attention as many other high profile cases from that last year, it has critical implications for creditors and debtors. In the decision, the court broadened what debtor actions qualify as 'fraud' in a bankruptcy case. If you are a California creditor and you believe that your interests have been harmed by a bankruptcy debtor's fraud, please contact our experienced San Jose creditors' rights attorneys today for aggressive legal assistance.

The pitfalls of debt

If you have more money going out than you have coming in, you probably won't be able to sustain it for long. After a few months of you paying less than the minimum or skipping payments, your creditors will become impatient. You may begin to receive letters or phone calls warning you of what you already know - you are falling behind.

Bouncing back after small business bankruptcy

It may not feel like it's a good thing, but filing for bankruptcy seemed like your only choice when your business began to fail. You may now be wondering if you should look for a retail job or try running your own business one more time. The truth is that rebuilding a business after bankruptcy is not easy, but it is also not impossible if you are willing to do the work.

Is Bankruptcy the Right Choice?

personal bankruptcy.jpgLife happens. Sometimes we get behind in paying a bill or two. No one is perfect 100 percent of the time. All too easily can we fall into the slippery slope of debt, which for many is becoming increasingly difficult to climb out of. When does a minor slip-up cross over into the realm of impossibilities? When is the right time, if ever, to file for bankruptcy? While missing a payment here and there is forgivable, sometimes due to unforeseen circumstances, catching up is just out of reach and bankruptcy is the only option.

  • Santa Clara County Bar Association | 1917
  • American Inns of Court
  • CWL | California Woman Lawyers
  • Bay Area Bankruptcy | Forun
  • The State Bar of California
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