October 10, 2010
U.S. bankruptcies are on the rise nationwide. In fact, U.S. consumer bankruptcies could top 1.6 million this year. The most common reasons for filing personal bankruptcy are bad mortgage debt, credit card debt, medical bills and divorce.
All these bankruptcy filings are affecting not just the people filing bankruptcy, but also their creditors.
While most people who declare bankruptcy do so as an absolute last resort, sometimes the debtor has regular income or valuable assets that could be used to pay off a portion of the debts.
If you are owed money by someone who declared bankruptcy recently, it does not mean you have no chance of recovering on the debt. You still have options for pursuing money owed to you.
Here are the steps you should follow if you are a creditor and someone who owes you money has declared bankruptcy. Read the rest of this entry »
March 2, 2010
Former five-time NBA All-Star Chris Webber, who played for the Golden State Warriors and Sacramento Kings, has become the latest victim of the economic downturn with the closing of his Sacramento-area restaurant.
Webber was sued Feb. 23 by his former landlord, the Promenade at Sacramento Gateway Shopping Center, for $1.8 million under the terms of the 20-year lease signed by Webber and his business partners.
Read the rest of this entry »
December 23, 2009
North Bay Biz magazine has published P&T Attorney John Corcoran‘s article, “Colorado’s ‘Balloon Boy’ Presents Cautionary Tale.”
Here is an excerpt:
[W]hat can the Colorado balloon boy incident teach us about our own lives? … The initial goal, aside from the hoax, was innocent enough—to generate publicity for a reality TV show. However, what if, instead of trying to generate publicity on his own, he’d hired a professional PR firm or a publicist? What if he had a good relationship with an attorney he could call and ask about the legal consequences of pulling such a stunt? Certainly, these professionals would have advised him to choose another course of conduct, and maybe they could have come up with another way of generating the publicity he desired.
Click here to keep reading….
October 8, 2009
It’s not often a fast food restaurant closes, much less files for bankruptcy protection. But that’s exactly what happened recently when the owner of 70 Jack In the Box fast food restaurants throughout northern and Central California suddenly shut down all his stores.
Abe Alizadeh of Kobra Associates Inc., who owns and operates the restaurants, suddenly closed all 70 of his restaurants in mid-September when his negotiations with his debtors broke down and he had to file bankruptcy.
Sadly, this story has been more of a common occurrence during the past year, with numerous businesses and individuals going through bankruptcy. It wasn’t so long ago, however, that it seemed Congress had high hopes of dramatically decreasing the number of bankruptcy filings.
When Congress did a major revamp of the bankruptcy law in 2005, the goal was to decrease the number of bankruptcies each year by making it more difficult for people to file bankruptcy. A secondary goal was to force more people to repay their debts over time through a Chapter 13 plan rather than liquidating their debts through Chapter 7. Read the rest of this entry »