Recent Blog Posts

Bankruptcy Signs to Watch Out For

Los Angeles Bankruptcy Attorney — Tue, 02 Aug 2011 16:47:00 GMT

One of the most difficult parts of dealing with a declining credit score and rising debt is not knowing how you will be able to escape that debt, and what you can do in order to begin repairing your credit and starting your financial life over.

If you find yourself in a position where your debts are beginning to become too much to handle every month, these may be the beginning signs that you will need to find a debt relief option that will allow you to effectively manage your debts, or even rid yourself entirely of them in order to start over.

Some signs that your debts may be increasing past the point of manageability can include not being able to pay all of your debts despite cutting back on frivolous spending, consistently being late on payments, and having debts sent to collections.

If you are unable to pay back your debts, it may be time to research and consider options such as chapter 7 and chapter 13 bankruptcies. By either discharging your debt completely, or negotiating to have your debt consolidated or reorganized, you may be able to have all of your unsecured debt paid off or wiped clean.

The legal team at the Pacific Attorney Group assists clients in the Los Angeles area who are in need of legal guidance for their bankruptcy issues. If you are in need of legal help for your debts, contact a Los Angeles bankruptcy attorney at our firm today to schedule a no-cost consultation.

Data Shows Bankruptcies Highest Since 2005

Los Angeles Bankruptcy Attorney — Wed, 15 Sep 2010 21:45:00 GMT

In a recent data released by the Administrative Office of the U.S. Courts, it has been found that bankruptcy filings from April to June are up a solid 11% from where they were the year before at the time frame.

The year that ended on the ending of June, bankruptcy filings were up 20% from the year before, with 1.57 million bankruptcies from the previous year's 1.31 million.

The interesting part of the data showed that this year's bankruptcy was the highest it had been since the record hitting year in 2005. Such numbers are a combination of a perfect storm of unemployment and sluggish economy. Of all the states, Nevada had the highest bankruptcy rate.

If you are one of those who are currently in need to file for bankruptcy, it is in your best interest to contact Pacific Attorney Group as soon as possible. A Los Angeles bankruptcy lawyer will be able to talk to you and help you understand your situation, answering your questions and clarifying any points you were previously confused about. It is imperative that you work with someone experienced and knowledgeable in this area of law as it can get complex. We are completely dedicated to getting you the legal support that you deserve.

When Should You File For Bankruptcy?

Los Angeles Bankruptcy Attorney — Wed, 08 Sep 2010 20:45:00 GMT

There is hardly a more confusing or complex area of the law than bankruptcy. While it can not only be bewildering for the looping legalities, it is often charged with a certain level of emotional distress. For that reason, it is sadly easy to make some of the most common bankruptcy mistakes that plague people when they consider filing. With the help of an experienced Los Angeles bankruptcy lawyer, you can learn how to dispel common bankruptcy myths as well as learn how to avoid some of the more frequent bankruptcy mistakes.

One of the largest mistakes that people make is incorrect timing in their filing. If they file too quickly, and are expecting a large bill or purchase to be hitting them shortly after, they will get their debt under control just in time to turn around and fall into debt once more. If they, however, wait too long to file, they will simply only fall further and further down the slippery slope, living with undue stress and terror of such things as creditor harassment.

If you believe you are in a situation where bankruptcy might be a viable option, it is in your best interest to contact Pacific Attorney Group as soon as possible. By talking to them, you will be able to breathe easier knowing they are helping navigate you safely through the process. They can help you avoid some of the more common mistakes and move forward painlessly into the next chapter of your life.

American Apparel Could Be Filing for Bankruptcy

Los Angeles Bankruptcy Attorney — Thu, 02 Sep 2010 21:05:00 GMT

Clothing store American Apparel might very well be on their way towards filing for bankruptcy, as the company has announced that it is uncertain whether or not they have the funds to continue operations as they currently stand.

It is being estimated that their losses for the second quarter will fall somewhere in between five and seven million dollars. They are currently in the vicinity of $91 in debt.

As CEO Dov Charney told BusinessWeek.com at the beginning of August, "A lot of assumptions that I grew up with are no longer reality. Those were things that we could rely on: that lenders will always be there, that they'll behave ethically and they'll always have money, that you can trust that as the sun comes up the consumer will be healthy, that we'll always be close to full employment in developed nations. Now there are no certainties."

If you or a loved one are currently considering filing for bankruptcy, whether it be Chapter 7, Chapter 11 or Chapter 13, it is vitally important that you contact Pacific Attorney Group as soon as you can. By working with a knowledgeable bankruptcy lawyer, you can be confident that you will be navigated through the process with as much ease as possible, giving you the clean slate you need to move forward in your life.

Chelsea Art Museum Closes Doors Temporarily

Los Angeles Bankruptcy Lawyer — Mon, 23 Aug 2010 22:15:00 GMT

It is being reported that due to efforts to avoid foreclosure, the Chelsea Art Museum will be closing their doors for the second half of August.

The museum filed for Chapter 11 bankruptcy at the beginning of August and is currently working to restructure finances in attempts to continually evade the possibility of foreclosure. According to a managing director at the museum, such a closure was not discussed with them. There were previously shows scheduled for the second half of the month.

If you are currently in a situation where you are struggling to control your finances and keep your head above water, it is vitally important that you take the time to explore all of your options. While many people believe the myths that surround bankruptcy, it is often a viable solution towards getting your feet back underneath you. If you are currently looking into filing for bankruptcy, contact Pacific Attorney Group today to evaluate your case and look into the possible options for you. An experienced Los Angeles bankruptcy lawyer will be able to give you the legal support you need to get through this struggle as easily as possible so that you can start a new chapter with a clean slate.

Real Housewife Goes on Shopping Spree After Filing for Bankruptcy

Los Angeles Bankruptcy Attorney — Tue, 17 Aug 2010 20:33:00 GMT

After racking up an impressive $11 million in debt, Teresa Giudice of the reality TV show the Real Housewives of New Jersey and her husband filed for Chapter 7 bankruptcy last October.

The couple is recently drawing fire, however, as while the court is forcing the couple to auction of assets in attempts to repay their debt, they are hardly appearing to be fiscally responsible. It is being reported that the couple went on a shopping spree in excess of $21,000 immediately before filing for bankruptcy and yet another spree of $60,000 right after.

Their lawyer, Jim Kridel, has jumped to their defense, however, saying that the money they spent after filing came from a book advance Giudice got for Skinny Italian. He argued that since the money was earned after the filing, Giudice is free to spend it however she likes. Regardless, the couple is currently being forced to auction off some of their better known assets, including a boat and a suit of armor, in their efforts to become debt free.

If you or a loved one are currently struggling with debt and considering filing for bankruptcy, contact Pacific Attorney Group as soon as you can. By working with an experienced bankruptcy attorney, you can get your questions answered and any myths dispelled. When you are educated about the situation and are working with a lawyer that holds your best interests at heart, you can be confident your future is being handled by responsible, capable hands.

Tribune Co. Buys More Time in Bankruptcy Reorganization

Los Angeles Bankruptcy Attorney — Mon, 05 Apr 2010 16:20:00 GMT

Tribune Co., parent company of the Los Angeles Times, KTLA-TV Channel 5, and other various media outlets, is trying to buy more time to negotiate with its creditors before having to propose a reorganization plan in bankruptcy court.

The company has already filed four extensions, but thanks to a loophole in Delaware law, the company can file for an extension to freeze the exclusivity period until the next scheduled court hearing, which happens to be April 13.

Tribune has been holding off, trying to broker some sort of deal between its senior creditors and junior bondholders. The senior creditors, which include JP Morgan Chase and multiple hedge funds and distressed debt investors, feel that since the company's value has fallen far below $5 billion, their claims should be satisfied first. On the other hand, two groups of the junior bondholders, who have more than $2 billion at stake, say they were improperly subordinated to the senior lenders.

Despite filing for an extension, the company still hopes to have reached an agreement before this month's hearing.

Pacific Attorney Group offers experienced legal counsel to individuals, families, and businesses in the Los Angeles area who have fallen on hard economic times and are interested in filing for bankruptcy. Through bankruptcy, a debtor can seek the debt relief they need by eliminating their debts or reorganizing them into a repayment plan.

It's important for anyone considering filing for bankruptcy to first consult a Los Angeles bankruptcy attorney before taking any sort of action. An attorney at our office can help you determine which form of bankruptcy would best serve your particular needs, help you fill out the necessary paperwork, and provide you with experienced legal guidance throughout the bankruptcy process.

To schedule a consultation to discuss your financial matters, please contact Pacific Attorney Group today by calling (213) 236-4400!

Can Child Support Debt Be Eliminated Through Bankruptcy?

Los Angeles Bankruptcy Lawyer — Thu, 01 Apr 2010 16:55:00 GMT

Many parents struggling under mounting debt have asked us whether or not they can eliminate or reduce their child support debts through bankruptcy. Although Chapter 7 bankruptcy eliminates some a debtor's debt, there are certain types of debts that cannot be eliminated. Child support is one of those debts. Child support is classified as a non-dischargeable debt, and the bankruptcy laws clearly state that an automatic stay does not apply to child support in a Chapter 7 case. This means that even if your Chapter 7 bankruptcy petition is approved, you are still legally obligated to make your current child support payments, as well as repay your child support debt.

When a person files for Chapter 13 bankruptcy, their child support debt is included in that person's repayment plan, and is paid as a first priority. Furthermore, a debtor must keep current on any child support payments due after he or she had filed their bankruptcy petition. If they don't, the court will not issue a discharge in the case where child support is owed.

These bankruptcy laws also apply to all other types of support relating to the care of a child, such as medical expenses, school tuition, etc.

Contact an Experienced Los Angeles Bankruptcy Attorney

The bottom line is there is no way of getting out of your child support obligations or debt. If you have been ordered to pay child support, you must make your payments, even if you are struggling financially. At Pacific Attorney Group, we know how stressful it is to try and overcome large sums of debt, especially when you're asked to continue making payments on something you may or may not be able to afford. A Los Angeles bankruptcy lawyer at our office would be happy to meet with you during a free consultation to discuss possible debt relief options you can take advantage of.

Please call (213) 236-4400 to arrange a consultation with an attorney at our office today!

Can I Eliminate Credit Card Debt Through Bankruptcy?

Los Angeles Bankruptcy Lawyer — Tue, 30 Mar 2010 20:00:00 GMT

Despite what you may have heard, you can eliminate your credit card debt through bankruptcy. Since the bankruptcy laws were revamped in 2005, many people have expressed confusion over whether or not they are still able to discharge their credit card through bankruptcy.

The news laws didn't eliminate a person's opportunity to discharge their credit card debt, they simply made it more difficult for people to file for Chapter 7 bankruptcy. Whereas before pretty much anyone could file for Chapter 7, now people who wish to eliminate their debt without a repayment plan must first pass the Means Test. Those who do not pass the test must either file for Chapter 13 bankruptcy or look into some other debt relief options.

If you are in over your head in credit card debt, a Los Angeles bankruptcy lawyer at Pacific Attorney Group can help. We have a great deal of knowledge and practice in U.S. bankrputcy laws, and have helped clients from all walks of life obtain relief from debt by filing for bankruptcy. If eliminating your credit card debt is your objective, you can trust our firm to help you find best possible solution to get the job done.

For more information about our bankruptcy and debt relief services, please contact Pacific Attorney Group today at (213) 236-4400!

What is a Short Sale?

Los Angeles Bankruptcy Attorney — Fri, 26 Mar 2010 19:00:00 GMT

If you are being threatened with foreclosure, a short sale is viable alternative you should consider. A short sale occurs when the lender agrees to allow the homeowner to sell their home for less than it's worth and forgive the rest of what is still owed on the loan. Although you will not be able to keep your home, the benefit to you is that your credit will be spared from the damage of allowing your home to go into foreclosure.

The important thing to remember about short sales is that the lender MUST AGREE to it. While some lenders feel it's better to recuperate some of money on the house and avoid the hassle of foreclosure, other lenders may find it more profitable to just let the home go into foreclosure.

At Pacific Attorney Group, we are committed to helping struggling homeowners throughout Los Angeles fight foreclosure. If you have been served a Notice of Foreclosure, or if you have fallen behind on your mortgage payments and no longer wish to keep your home, you can rely on a Los Angeles foreclosure defense attorney at our office to help you explore all possible options and alternatives. Our number one priority is helping our clients find the best possible long-term solution for themselves and for their families.

Contact Pacific Attorney Group by calling (213) 236-4400 today!

Bankruptcy Means Test

Los Angeles Bankruptcy Lawyer — Mon, 22 Mar 2010 17:10:00 GMT

In 2005, a new set of bankruptcy laws were enacted to make it more difficult for people to file for Chapter 7, the form of bankruptcy that eliminates non-secured debt. The laws were created to try to force more people to file for Chapter 13, which requires a debtor to repay their debt over the course of three to five years.

Now if a debtor wants to file for Chapter 7 bankruptcy they must first pass a means test. This requirement is part of the new bankruptcy laws and was included to weed out people who can afford to pay off their debts through Chapter 13. The first part of the Means Test is to determine whether or not your current monthly income is less than the median income for a household of your size in your state. If your household income is less than your state’s median income for a family of your size, then you pass the Means test. This means you can proceed forward and file for Chapter 7.

If your household income is more than your state’s median income for a family of your size, then you must take one more step, which is to complete a worksheet to calculate whether or not you make enough money to repay your creditors. After completing the worksheet, if you have a large enough income to pay a significant portion of your debt, you will fail the Means Test and will not qualify for Chapter 7. You can file for Chapter 13 or you can look into some other debt relief options, such as credit counseling, debt consolidation, or debt settlement.

Thinking About Filing for Bankruptcy?

If you are interested in reducing or eliminating your debt through bankruptcy, you should take a moment to consult an experienced Los Angeles bankruptcy lawyer at Pacific Attorney Group. We can review your financial situation and identify whether or not you’re likely to pass the Means Test. To schedule an appointment with an attorney at our office to discuss filing for bankruptcy, please call (213) 236-4400 today!

Blockbuster May File for Bankruptcy

Los Angeles Bankruptcy Attorney — Thu, 18 Mar 2010 16:00:00 GMT

Rumor is that movie rental chain Blockbuster Inc. may be heading to bankruptcy court. With almost $860 million in debt and high competition from rental kiosks, by-mail rentals, and online downloads, the one-time video rental giant has been losing profits left and right.

The company is taking several steps to try and stay in business, but filing for bankruptcy is not one of them, according Chief Executive Officer James Keys. In a recent interview Keys discounted the likelihood that the company will file for bankruptcy, saying instead the company plans to work with Hollywood studios to reduce DVD costs. Part of that plan includes creating consignment arrangements that would give movie studios a bigger share of the revenue while also lowering what Blockbuster pays.

Competition from vending machine kiosks like Redbox, as well as competition from by-mail or online video rentals from Netflix, Inc. has also taken a toll on the company. Keys is now in talks with several studios to make videos available for rent at Blockbuster Express (a video rental kiosk) the same day they go on sale. The company is also exploring the possibility of distributing movies through video on-demand services, which consumers could access through their cable, satellite, or telephone company.

For the fiscal year ending January 4, Blockbuster reported a net loss of $558.2 million, with sales dropping 20% to $4.06 billion. The company’s stock has also declined by 40% this year. Furthermore, after its sixth straight quarter of declining revenues, the company’s credit ranking was cut two grades by Moody’s Investor Services.

Helping Businesses in L.A. File for Bankruptcy

If your business is struggling to stay in operation, there are debt relief solutions available to you. You could enter into Chapter 11 bankruptcy, which will give you a chance to reorganize your business’ finances, or you could take advantage of some other debt relief options, such as credit counseling, debt consolidation, or debt settlement. A Los Angeles bankruptcy attorney at Pacific Attorney Group is available to meet with you to review your current financial situation and discuss all possible avenues to eliminate your debt and get your finances back on track!

Contact Pacific Attorney Group today at (213) 236-4400!

Alternatives to Foreclosure

Los Angeles Bankruptcy Attorney — Wed, 17 Mar 2010 00:40:00 GMT

If you have been served a Notice of Foreclosure, it’s natural to panic. However, you should know there are several alternatives to foreclosure that may help you save your home, such as:

Forbearance. If you are having trouble making your mortgage payments, loan forbearance may be a good option for you. Under a forbearance agreement the lender agrees to allow the homeowner to temporarily stop making payments until they have recovered from their financial problems. A forbearance wont excuse a homeowner from making his or her mortgage payments, and eventually the homeowner will have to repay the mortgage payments he or she missed. It simply delays payments until a later time.
Loan Modification. You may be able to modify the terms of your existing mortgage loan to make your monthly mortgage payments more affordable. This might include lowering the interest rate, reducing the principal balance, changing your loan from an adjustable rate to a fix rate, or shortening or extending the life of the loan.
Short Sale. In a short sale, the bank agrees to let you sell the house for less than it’s worth. In order for a short sale to work the lender must agree to it because they will be accepting a lower payoff than what the home is actually worth. The reason some lenders agree to this is because they'd rather have the house sold and collect some money than have to deal with a foreclosure.
Bankruptcy. Once a person files for Chapter 13, all debt collection actions taken against them, including foreclosure, must cease. Once you’re under the protection of Chapter 13, you can reorganize your finances and work out a payment plan to pay off your debts over the next three to five years. You can include your mortgage debt in this plan so you are able to stay in your home.
Deed in Lieu. A deed in lieu of foreclosure occurs when the homeowner agrees to give the deed of their home back to the lender because they can no longer afford the payments. The lender then sells the property in order to recuperate the remaining balance the homeowner still owes. Although the homeowner will not be able to stay in their home, they will avoid the negative effects associated with foreclosure.

At Pacific Attorney Group, we are committed to helping homeowners throughout Los Angeles stop foreclosure and stay in their homes. We know this is an unsettling time for you, and want to help in any way we can. If you are interested in learning more about your options in regards to fighting foreclosure, please do not hesitate to contact a Los Angeles foreclosure defense attorney at our office today!

Debt Settlement v. Debt Negotiation

Los Angeles Bankruptcy Attorney — Thu, 11 Mar 2010 00:50:00 GMT

If you are struggling with mounting debt and are searching for a debt relief option, you should consider either debt settlement or debt negotiation. Both debt settlement and debt negotiation are effective ways of reducing or eliminating debt. However, they are slightly different, so it’s important that you understand what is involved with each before you take any type of action.

Debt Settlement is an approach to reducing debt by negotiating with creditors to reduce the balance that you owe. Sometimes creditors are willing to reduce a person’s debt by anywhere from 40-60%. While this might seem too good to be true, some creditors simply feel it’s better to recuperate some of the money that is owed than risk getting nothing should the debtor file for bankruptcy. The two downsides to debt settlement are the tax implications and the effect it will have on your credit score. Although your credit score won’t be completely ruined, it will lower your credit score.

Debt consolidation works by taking out a large loan to cover all of your debt. Instead of repaying multiple creditors, the debtor instead makes payments to the company that issued the larger loan. Like debt settlement, debt consolidation will affect your credit score, and some lenders might put a temporary hold on extending new lines of credit.

There is no simple solution to overcoming debt, but there are plenty of options available to you. An experienced Los Angles bankruptcy attorney at Pacific Attorney Group can meet with you to discuss your financial situation and determine the best debt relief program for you. To schedule a consultation, contact the office today at (213) 236-4400.

Chapter 13 Can Help Fight Foreclosure

Los Angeles Bankruptcy Lawyer — Mon, 08 Mar 2010 21:25:00 GMT

With the foreclosure rate at an all-time high, millions of Americans are losing their homes. Fortunately, struggling homeowners who are having a hard time making their mortgage payments do have options available to them. One option available to homeowners facing foreclosure is to file for bankruptcy. In doing so, the homeowner may be able to save their assets, including their home, and overcome their debt.

If you are facing foreclosure, filing for Chapter 13 bankruptcy will protect you from creditors and allow you to reorganize your debt. As soon as you have filed for bankruptcy, all debt collection efforts must stop and you will have the chance to work out a repayment plan with the court to pay off your debts over the course of three to five years. Sometimes the bankruptcy court will agree to let the debtor pay the overdue amount on the mortgage through the repayment plan, thus preventing foreclosure. Through Chapter 13 bankruptcy, a debtor generally has 60 months to catch up on any mortgage debt. And once the debtor files for bankruptcy, the original mortgage is reinstated, regardless of how far behind the debtor is in his or her payments. A debtor also has the option of selling the home through bankruptcy, instead of letting it go for sale in a sheriff sale.

At Pacific Attorney Group, we are committed to helping homeowners throughout Los Angeles stay in their homes. We’d be happy to meet with you to discuss your current situation and determine what strategies would be effective in fighting your foreclosure. We can discuss filing for Chapter 13 bankruptcy, but if that is something you aren’t comfortable with or something that wouldn’t serve your best interest, we can review some other available options.

For more information, contact the office today to discuss this matter with a knowledgeable Los Angeles foreclosure defense attorney.