OC Chapter 7 Bankruptcy filings, November 2009

December 9, 2009 · Posted by admin

As we get closer to the end of this year, Chapter 7 bankruptcy filings for the month of November 2009 have not decreased.

Research done by a leading bankruptcy law firm concluded that Anaheim, Costa Mesa, Fullerton, Garden Grove, Huntington Beach, Irvine, Mission Viejo,  Newport Beach, Orange, and Santa Ana are reported as the cities with the most cases filed.

Chapter 7 bankruptcy attorneys have also seen a high number of bankruptcies filed in Westminster, Tustin, Lake Forest, Buena Park and Aliso Viejo.

Tags:

,,,,,,,,,,,,,,,

Consumer Bankruptcy Filings Rising in Southern California

June 29, 2009 · Posted by Alex

From Curtis Law Group’s blog:

“As reported in the Los Angeles Times yesterday, southern California has seen a dramatic increase in the number of consumer bankruptcy filings of late. The article referenced the mortgage crisis as the culprit, while also highlighting the fact that changes to the Bankruptcy Code in the Bankruptcy Bill of 2005 have seemingly failed to reduce the number of bankruptcies these last few years.

Although the article emphasizes the increase in the greater Los Angeles area, bankruptcies in Orange County, Riverside County, and San Bernardino County have also risen dramatically in the past year, flooding bankruptcy attorneys in southern California with inquiries from debtors about whether they qualify for Chapter 7 bankruptcy, or whether they must resort to Chapter 13 of the Bankruptcy Code for relief.”

Tags:

,,,,,,,,,,,

Recession to Take Especially Big Toll on Orange County

December 17, 2008 · Posted by Alex

Although the economic crisis is hitting California as hard as the rest of the country, it is hitting certain counties in California even harder, according to UCLA economists. Riverside County, San Bernardino County, Orange County, and a few other areas will feel the effects of the recession more than the rest of the state.

From the OC Register:

“’The Inland Empire, Orange County, the East Bay and the Central Valley will be hit the hardest as the recession provides a double whammy with a generalized downturn in demand and a postponement of a recovery in residential construction,’says the UCLA quarterly economic forecast.

Orange County unemployment soared to 6 percent in October, a high not seen since July 1994 during the aerospace and construction recession of the mid-1990s.

Economist Jerry Nickelsberg blames the collapse of Orange County’s mortgage and home finance industry for creating an additional strain on the local economy now.

‘It created a big hole in Orange County employment,’says Nickelsberg. He believes it will take several years to absorb those lost jobs.”

According to the forecast, the next year will only get worse for Orange County residents, as unemployment will continue to rise. This, in turn, will lead to less consumer spending and more consumer and business bankruptcies. Bankruptcy attorneys in Orange County, from Irvine to Santa Ana to Rancho Santa Margarita, are reporting high volumes of new bankruptcy clients seeking to file Chapter 7 and Chapter 13 bankruptcies. As far as business in California goes, bankruptcy attorneys are among the select few that are seeing an increase in clients from this crisis.

For More Information: click here

Tags:

,,,,,,,,,,,,,,

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

Tags:

,,,,,,,,,,,,,,,,,,,

You Don’t Always Have to Wait Eight Years to Get A Discharge in a Second Bankruptcy Case…

November 7, 2008 · Posted by the man

With the cost of living as high as it is in Orange County – particularly the cost of renting or owning a home in popular locations like Irvine, Laguna Beach, Newport Beach and Huntington Beach – it often means that people who have filed a bankruptcy case earlier in life must do so a second time.

The first bankruptcy case often comes about when someone in their 20s or 30s who rents in an average cost neighborhood such as Tustin, Santa Ana or Costa Mesa, runs into credit problems due to easy access to credit cards, car loans and loans for “toys.” A person filing bankruptcy in their twenties often elects to file a Chapter 7 “straight” bankruptcy case, because it’s best suited to their situation.

However, the same person might become unemployed a few years later - unable to pay their home loan payments on the home they purchased in a family community such as Mission Viejo, Rancho Santa Margarita, Foothill Ranch or Laguna Niguel. If this is the case, a bankruptcy plan may be needed to bring home loan or tax payments current – something that a Chapter 13 “payment plan” bankruptcy can help with.

The good news is that the Bankruptcy Code does not limit the number of times a person can file for bankruptcy. So, it is likely that a second bankruptcy case can be filed. The Bankruptcy Code does have limits, though – a minimum amount of time must pass before a debtor can file a second bankruptcy case and obtain a discharge of his or her debts.

More good news:  The Bankruptcy Code allows people to file a bankruptcy case as soon as two years (yes, 2 years!) after the first case and obtain a discharge – depending upon the type of case previously filed and the type of case to be filed. So don’t be discouraged if you find yourself in need of a second bankruptcy – it happens more often than you might think. Talk to an attorney or lawyer about your situation. He or she may be able to help.

Tags:

,,,,,,,,,,,,,,,,

Next Page »