OC Chapter 7 Bankruptcy Filings for September 2009

October 5, 2009 · Posted by Alex

Orange County Chapter 7 bankruptcy filings for September continue to rise in 2009.

The cities with the most Chapter 7 bankruptcy filings in Orange County in September are as follows:

Anaheim, Costa Mesa, Fullerton, Garden Grove, Huntington Beach, Irvine, Lake Forest, Mission Viejo, Orange, and Santa Ana.

Bankruptcy attorneys in Orange County affirm the report’s finding that the increase in Chapter 7 bankruptcy clients has not slowed so far in 2009.

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Orange County Chapter 7 Bankruptcy Filings for July 2009

August 5, 2009 · Posted by Alex

Chapter 7 bankruptcy filings are on the rise in Orange County, but some cities are seeing higher numbers of filings than others.

The top ten cities in Orange County with the most Chapter 7 Bankruptcy filings for the month of July are as follows:

Aliso Viejo, Anaheim, Buena Park, Fullerton, Garden Grove, Huntington Beach, Irvine, Mission Viejo, Orange, and Santa Ana.

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Irvine Lender with $1 Billion in Assets Files for Bankruptcy

January 12, 2009 · Posted by Alex

From the Orange County Register online:

“BNC Mortgage, an Irvine-based subprime lender, filed for bankruptcy today to wind down its assets along with its parent Lehman Brothers, which also is bankrupt, reports Bloomberg.

The lender listed assets and debt of more than $1 billion each in its Chapter 11 petition in Manhattan. Here’s more from Bloomberg:

Lehman bought the unit, which specialized in subprime loans, in 2004, bringing it into the business which eventually led to the company’s demise. Lehman filed the biggest bankruptcy ever on Sept. 15, listing debt of $613 billion.

BNC joins another Lehman unit, Luxembourg-based Luxembourg Residential Properties Loan Finance, which filed for court protection in New York on Jan. 7. Both units want their bankruptcies consolidated with Lehman’s, according to court documents.

Consolidation is necessary ‘to experience a smooth transition into Chapter 11 with a minimum of delay, cost, and expense for the benefit of all parties in interest,’ lawyers for BNC Mortgage said in court documents.

BNC Mortgage, along with another acquisition, Aurora Loan Services LLC, were used by Lehman to create a steady flow of debt to package into bonds. In the first quarter of 2006, BNC was lending more than $1 billion a month.

Lehman closed the unit on Aug. 22, exiting the subprime business as it declared that the U.S. housing recession was far from over. Subprime loans, made to homebuyers with weak or limited credit histories, were cited by Lehman in its bankruptcy filing.

Luxembourg Properties and BNC Mortgage will seek consolidation with the Lehman case at a hearing Jan. 14.”

Other subprime lenders from the area that have been hit hard during this economic crisis include Option One Mortgage Company (headquartered in Irvine), BNC Mortgage (also headquartered in Irvine), and Argent Mortgage Co. (based in Orange).

Whether seen in the increase in Chapter 7, consumer bankruptcy filings or in the high-profile bankruptcy reorganization of a billion dollar company, it is clear that this crisis is still hitting Orange County hard. While mom and pop shops in cities like Lake Forest, Tustin, and Laguna Hills are struggling, so too are the corporations in Irvine and Newport Beach.

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Chapter 7 Bankrutpcy Filings for Orange County, December 2008

January 9, 2009 · Posted by Alex

Bankruptcy lawyers are needed in many cities, but perhaps in some more than others.

The Orange County cities with the most chapter 7 bankruptcy filings for the month of December, 2008, are as follows: Anaheim, Buena Park, Costa Mesa, Fullerton, Garden Grove, Huntington Beach, Irvine, Mission Viejo, Orange, and Santa Ana. Orange County cities that also had a high number, especially considering their relative population, include Laguna Hills, San Clemente, and San Juan Capistrano.

The total number of Chapter 7 bankruptcy filings in the Santa Ana Bankruptcy Courthouse during December 2008 was 605.

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During Credit Crunch, Bankruptcy Difficult to Avoid

November 17, 2008 · Posted by Alex

Last month saw a 34% growth in bankruptcies filings, as compared to cases filed in October 2007. According to the New York Times, this increase in the number of bankruptcy filings is due in large part to the specific nature of this particular economic crisis. Besides the usual reasons why people look for bankruptcy protection, such as job loss, medical bills, divorce, the central reasons for the increase in Chapter 7 and Chapter 13 bankruptcy filings during this economic crisis have more to do with the abrupt drop of home values, unstable incomes, and the “credit crunch”.

It seems that more people are turning to bankruptcy lawyers during this economic downturn than during the tech bust because of how the mortgage crisis has affected the lending practices of financial institutions. Essentially, where debtors used to be able to avoid bankruptcy by obtaining more credit, and tried to stay afloat for a while longer, the current “credit crunch” has made it nearly impossible for many to obtain new credit cards, refinance their home mortgages, or get a home equitiy line of credit, due to the banks’ pull back on lending. This has, in turn, driven many debtors to file for bankruptcy that would have otherwise avoided it. This does not mean that many people aren’t trying their best to avoid filing, as seen in a key statistical comparison to the filings in 2001.

In recent studies, it was shown that the typical family who filed for bankruptcy in 2007 carried 21% more secured debt and 44% more unsecured debt than people who filed in 2001, even though average income among those filing for bankruptcy remained static over those six years. So although income stayed the same, debt rose, illustrating the attempt by debtors to put off bankruptcy as long as possible while trying to get back on their feet. Studies also show that filings increased mostly in places where real estate values skyrocketed and then crashed, including Irvine, Laguna Beach, and Mission Viejo in Orange County, as well as Corona, Murrieta, and Temecula in Riverside County.

Although filing for bankruptcy and hiring an attorney is not anyone’s idea of a good time, for many Orange County, Riverside County, and San Bernardino County residents it’s the most sensible solution to get their financial sanity back, and the best path toward a well deserved fresh start.

To read the NY Times article, click here

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