Bankruptcy Attorneys in Orange County, pay attention. The top ten Orange County cities with the most Chapter 7 bankruptcy filings for the month of November, 2008 are: Anaheim, Buena Park, Costa Mesa, Fullerton, Garden Grove, Huntington Beach, Irvine, Mission Viejo, Orange, and Santa Ana.
Other Orange County cities that also had a high number of Chapter 7 bankruptcy filings, especially considering their relative population, include Rancho Santa Margarita, San Clemente, and Tustin.
The downturned economy is setting the perfect scene for a battle starring restaurants, food chains and small diners in Orange County.
Restaurants and other food joints are using different tactics to attract customers, keep the loyal ones, or if it comes to it, to avoid layoffs and closings.
Facing soaring ingredient prices and lack of customers, the food industry has been doing all it can to survive this recession. Employing tactics such as value deals, 2 x 1 coupons, smaller food portions, price increases and lunch service elimination, restaurants of all sizes in Orange County are hoping this will be enough to avoid bankruptcy.
Some of the chains and restaurants In Orange County that have implemented these tactics are Black Angus, with locations in Fullerton, Lake Forrest and Fountain Valley; Mimi’s Café, with locations in Tustin, Costa Mesa, Fountain Valley, and Garden Grove; The Daily Grill, with locations in Newport Beach and Irvine.
None of these chains or restaurants have been forced into bankruptcy — yet. Orange County residents are hoping it stays that way…
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.
Orange County, California is the car capital of the United States – if not the entire world. Look down any street in one of the beach towns – or even Irvine, Laguna Hills, Aliso Viejo or Rancho Santa Margarita, for that matter – and you will see rows of beautiful new cars in parking lots and driveways all around you. Most of those car owners are making large payments on their cars, so here’s a tip for those who need to file a Chapter 7 bankruptcy case and also want to reduce their car loan balance and payments.
Many bankruptcy attorneys know that a debtor (borrower) may redeem a car when filing a Chapter 7 bankruptcy case. Redemption is a right granted under Bankruptcy Code Section 722 that gives the borrower the right to purchase an asset at its current fair market value when a Chapter 7 case is filed.
Most borrowers don’t have the available cash to buy their car out of the Chapter 7 bankruptcy estate, though. So, it would seem that Bankruptcy Code redemption doesn’t help most borrowers.
What most debtors – and even many bankruptcy attorneys – don’t know is that there are actually a few lenders that will give borrowers a new loan on their car – while in bankruptcy – to pay for a redemption of the car. So, many borrowers who otherwise wouldn’t be able to redeem their cars now can.
You might ask, “Why would a person want to take out a new loan to redeem their car”?
There are two really good reasons: The new car loan will be for the current fair market value of the car (almost always less than the balance of the existing car loan), and the payments will also be lower.
Often times redemption lenders are able to help a borrower “purchase” the car back for as little as one half the current loan balance and with one half the current car loan payments. If this seems like a good deal for you, you should ask your bankruptcy attorney about it…
The Orange County cities with the most chapter 7 bankruptcy filings for the month of October, 2008: Anaheim, Buena Park, Costa Mesa, Fullerton, Garden Grove, Huntington Beach, Irvine, Lake Forest, Mission Viejo, Orange, Santa Ana, and Westminster. Orange County cities that also had a high number, especially considering their relative population, include Laguna Hills, Rancho Santa Margarita, and Tustin.
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