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:

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

Couple That Struck It Rich In Real Estate Files For Bankruptcy

February 11, 2009 · Posted by Alex

Mr. and Mrs. Robert Dyson have been forced into bankruptcy. According to their bankruptcy attorney, the real estate market’s dismal state during this economic crisis was the culprit. As news about record foreclosures and Orange County bankruptcy cases filed (along with other southern California counties), it is not too surprising that the real estate market that had given this couple so much, ended up taking away as much as it gave.

From the North County Times online article:

“A couple who made a name and fortune in high-class coastal real estate have crashed into bankruptcy and are asking a court to erase more than $40 million in debt, including $625,000 that stemmed from alleged misuse of a helicopter loan.

According to court filings, property records and interviews, the couple, Robert and Loraine Dyson, shut down their Solana Beach real estate brokerage, an affiliate of Sotheby’s International Realty, in October. They also filed for personal bankruptcy and have apparently scotched plans to develop an equestrian resort and estates in central Riverside County…

The Dysons’ financial unraveling was as spectacular as their ambition. The couple own a $7 million estate in Rancho Santa Fe and —- until recently —- several other residences in the most exclusive areas of the Southern California coast and the San Jacinto Mountains.

Press releases from their real estate agency reported billions of dollars of annual sales. Their charitable foundation parceled out tens of thousands of dollars.

The Dysons’ slide into bankruptcy followed an attempt to transform themselves from high-end real estate agents into high-end developers at what may have been the worst possible time.

They put some $30 million into property in the foothills of the San Jacinto Mountains starting in late 2005, with plans for equestrian estates that would eventually ramble over nearly 2,500 acres…

They filed for Chapter 7 bankruptcy on Oct. 30, estimating their debts at $50 million to $100 million and their assets at $1 million to $10 million. A debtor who qualifies for Chapter 7 can usually keep a car and other necessities, subject to limits on their value; other assets are sold off to cover portions of the debt, and the remaining debt is wiped away.

The trustee supervising their bankruptcy recommended in December that the couple abandon the Rancho Santa Fe home that they bought in June 2005 because debt and liens account for nearly its entire $7 million value. A later filing by the trustee recommended they give up a $90,000 leased Porsche sports car and their $3.2 million home in Palm Desert, which is in foreclosure…”

Although this couple’s real estate woes lay outside of Orange County, many cities within Orange County such as Santa Ana, Irvine, and Rancho Santa Margarita, are seeing increased foreclosures and Chapter 7 bankruptcies as well.

Tags:

,,,,,,,

Smurfit-Stone Seeks Bankruptcy Protection

January 26, 2009 · Posted by Alex

From the Orange County Register online:

“Smurfit-Stone Container Corp., the largest producer of cardboard box materials in North America, on Monday filed for Chapter 11 bankruptcy protection as it looks to restructure a heavy debt amid a global credit freeze…The company said it expects to continue operations during the bankruptcy process and has received commitments for up to $750 million in debtor-in-possession financing to fund continuing operations. Of that $750 million, some $350 million is new incremental financing, while the remainder represents replacement of existing credit.

Earlier this month, a report said Smurfit-Stone was actively exploring bankruptcy protection and had engaged a law firm and financial advisers with expertise in bankruptcy filings.

Analysts responded positively to the filing.

‘The main thing is that this was an expected event and overall being a Chapter 11, instead of a Chapter 7 filing, it is good for the company and good for the industry longer term,’ said Longbow Research analyst Joshua Zaret.”

Smurfit-Stone had a corrugated container facility in Fullerton, Orange County until last year, when it was sold.  It is possible that some of the many Orange County bankruptcy attorneys that abound in the area were prospectively culled to represent Smurfit Stone in their case.  We can only speculate about that, however, as the Orange County Register article does not disclose the name of the bankruptcy law firm retained for Smurfit’s bankruptcy case.

For More Information: click here

Tags:

,,,,,,

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.

Tags:

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

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.

Tags:

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

Next Page »