Los Angeles Bankruptcy Lawyer Blog

The California Attorney General recently announced a plan to go after corporate fraud, scams and fraudulent lending practices, The Los Angeles Times reports.

This is welcome news to the thousands of California homeowners who have been swindled by greedy predators. Los Angeles Bankruptcy Attorneys hope the Attorney General's new plan has substance and fights the many predatory lenders who have ruined many people's lives.

According to the news story, the new unit will focus on corporate fraud, including instances in which bundled mortgages were sold as securities to the state or its pension funds under false pretenses.

It will also seek to prosecute scam artists, including consultants and others who took fees in foreclosure proceedings, saying they would help with loan modifications or other remedies but did nothing. The third area of practice is in fraudulent lending practices, including deceptive marketing and qualifying people for loans they couldn't afford.

The announcement comes as all 50 state attorneys general are investigating foreclosure practices of the country's five largest mortgage servicers. This widespread problem has caused illegal foreclosures, caused people to file for bankruptcy who may not have had to make such a decision and sent people into financial ruin. Many banks have filed incorrect paperwork in foreclosure proceedings or used companies that signed documents without checking them for accuracy.

The Wall Street Journal reports that reports of mortgage fraud reached their highest level in 2010. According to a Treasury Department report, the Los Angeles area had more than 11,000 reports of suspicious mortgage loan fraud activity in 2010, second in the country to the Miami area.

Don't be too quick to assume that falling behind on your mortgage is your own fault. Predatory lenders, scammers who promise to help you modify your loan and others out there who are trying to hurt you are lurking.

If you find yourself in such a position, consult with Los Angeles Foreclosure Litigation Attorneys right now. With so many problems in the area of lending and foreclosure practices, it's not shocking that litigation has become so popular. A lawsuit may help you keep your house, stop foreclosure, prevent negative credit scores and allow you to renegotiate your loan.

Continue reading "New California Mortgage Fraud Task Force Aims to Help Consumers" »

It's been well-documented that people in Los Angeles and throughout California have used bankruptcy laws to protect their financial futures in record numbers amid the predatory lending practices of banks that led to the economic collapse. According to the American Bankruptcy Institute, there were more than 260,000 bankruptcy filings statewide in 2010, up from about 72,000 in 2007.
And the statistics nationwide are alarming: We owe more than $2.4 trillion in credit card debt, medical bills and other unsecured debt, economywatch.com reports.

Los Angeles Bankruptcy Attorneys are available in Encino, Glendale, Downey or Antelope Valley to assist you in the process that may be best for you. In our state, bankruptcy can give consumers a fresh start. In fact, bankruptcy is one of the few laws on the books to protect the consumer rather than the nation's banks.

The statistics aren't pretty, but they show that more and more people are using bankruptcy to save their homes, eliminate their mounds of credit card and personal loan debt and move on with their lives. There are different forms of bankruptcy, including Chapter 7 and Chapter 13.

These are different forms of bankruptcy, but can help you accomplish the same goal of no longer being saddled with an unbearable amount of debt you can't handle. Consider taking advantage of our free consultation, starting with a form on our web site.

It's possible that Chapter 7 bankruptcy is best for you. What Chapter 7 does is permanently eliminates your personal debt without requiring you to pay any of it back. You may qualify if you:

• Owe significant debt
• Find it difficult to make ends meet
• Have little or no money left after paying your bills each month
• Experienced a job loss or a dramatic drop in income
• Own a home with little equity, or you rent

Chapter 13 is more geared toward people who want to save their homes or who have significant income with which to establish a repayment plan. If you think you can set up a payment plan over the next three to five years to satisfy your debts, you may file Chapter 13 and save your assets.

Continue reading "Californians Turning to Bankruptcy to Secure Their Financial Future" »

Whether you're a seasoned financial planner, a young family unable to keep up with payments on your house, car and students loans or someone who has already gone through the freeing process of bankruptcy, smart money tips can be helpful to you. MSN Money provides 15 areas where you're throwing away your money.

For many people, personal finances are the one thing they just can't get under control. Whether it's compulsive buying, ill-advised large-scale purchases, not putting any money away in savings, falling victim to predatory lending, or simply not having enough money to go around, they need help. The Los Angeles Bankruptcy Attorney has seen these struggles in clients for years. You're not alone.

But you must take action. Bankruptcy in California may be the solution to get your life back on track. Bankruptcy is a legal way to get your finances back in order. It's one of the few sets of laws on the books that protect consumers.

There are many reasons you may be stuck in a place where you can't realistically pay off your debt. Medical bills, unemployment, risky investments, divorce and credit cards with high interest rates have gotten to many of us. Sometimes all the planning in the world can't prevent tough life situations that cause our money problems.

Here are some tips to be smart with your money:

• Pay off your balance in full each month. For instance, a $1,000 balance with 18 percent interest on a credit card is a free $180 you're blowing every year.


• Cut the unhealthy habits. Are you smoking, spending thousands each year on cigarettes? Do you realize it adds to the cost of health and life insurance, too?


• Cellphone overload. Fancy smartphones cost hundreds of dollars and their rate plans can also cost more than $100 per month. Go to BillShrink to evaluate your usage or consider a pre-paid phone.


• Buying brand names. Many people insist that name brands are better, but many generic brands can provide the same product at half the price. Shop wisely.


• Get the freebies. Go to the library instead of the bookstore and eat at restaurants that offer free meals for kids.


• Make your money work for you. Search for high yields on CDs and money-market savings accounts instead of letting it sit in a low-interest savings account.

How you got there doesn't matter. But if you aren't able to make all those payments and you can't stop thinking of ways to prevent creditors from calling, you should schedule a free consultation with Los Angeles Bankruptcy Attorney to determine what avenue is the best for you

Continue reading "Smart Money Tips for Consumers In Los Angeles and Throughout California" »

Have debt collectors gotten authorization to start garnishing your wages, making it difficult to pay the bills and feed your family?

If so, a Los Angeles bankruptcy filing will immediately stop the debt collectors from garnishing your wages. Consult with Los Angeles Bankruptcy Attorneys and discuss the options you have to recover from debt.

A recent Fox News story says that wage garnishment is usually a last ditch effort for debt collectors. The authors of the article suggest speaking with creditors and agreeing to a payment plan. That is often sound advice.

There are some good options to help you avoid bankruptcy, as bankruptcy might not be the best option for you. Some alternatives to bankruptcy in California include credit counseling services, debt consolidation and debt negotiation and settlement. However, many of these services have costs and fees of their own. Often, they will result in a damaged credit score and long repayment plans. In some cases, they may only be delaying a consumer's bankruptcy filing and his or her ability to make a fresh start.

Call for a consultation.

• Credit counseling can put you in a position to negotiate with creditors because it shows you are serious about working out your debt problems. Sometimes, credit card companies will work with you pay off your debt in a manner than can help you, but they are not obligated to do it and may not. The counselors will also charge you fees for their work, so be careful.
• Debt consolidation can help you if you can get a lower interest loan to pay your high-interest debt, but this may not be feasible if you already have a lot of debt. You may also have to use your home as collateral, putting that at risk in the process.
• Debt negotiation and settlement means making an offer to immediately pay off a debt with a lump sum that is less than what you actually owe instead of making continued payments month after month. But as is the case with most people in debt, if you don't have a large sum of cash available to pay the debt, negotiation and settlement may not work.

Continue reading "California Wage Garnishment Can Be Stopped By Bankruptcy Filing" »

The numbers don't lie. The Orange County Register reports that in the 12 months ending March 31, California filed nearly 7 bankruptcy filings per 1,000 people, the fourth-highest rate in the country. That's up from a year ago, when California had about 6 filings per 1,000 people.

While this news means people are struggling with their debt, it also means you aren't alone if you're seeking help filing for bankruptcy in Los Angeles. Take advantage of our free consultation to see if bankruptcy is right for you.

According to the bankruptcy numbers, there were 1.1 million Chapter 7 liquidations in California. Chapter 7 bankruptcy in California is also known as personal liquidation bankruptcy.

Chapter 7 usually involves debts such as credit card balances, medical bills, lawsuits and other money owed. Most people qualify if their debt prevents them from meeting their monthly living expenses and they don't have a lot of valuable property. A means test will be done to assess your income and determine whether you qualify.

In Chapter 7 bankruptcy, a trustee is appointed by the court to examine your net worth and records, information that will be organized and filed by Los Angeles bankruptcy attorneys. Part of the trustee's job is to pay creditors by liquidating any substantial assets that aren't protected under the law. In some cases, vital assets can be protected, such as a house and vehicle. We will help determine which assets can be protected.

But many of the people who file for bankruptcy have thousands of dollars in credit card debt, medical bills or other debt and can't make mortgage payments or pay bills for other important assets. Then, it's possible that California Chapter 13 bankruptcy would be the best way to proceed. It's a different from of bankruptcy, but is designed to give you the same result. How it differs from Chapter 7 is that you set up a payment plan over three to five years to satisfy outstanding debts.

The design of Chapter 13 bankruptcy is to give consumers with regular income more time to pay off debts and keep their assets. It can be used to stop foreclosure or halt the repossession of a car. You may also be able to void certain debts that wouldn't be allowed under Chapter 7.

This area of law can be particularly helpful to people who are trying to get their lives back on track. But it requires a smart assessment of your situation, your assets and what kind of outcome you are hoping for. So, consult with a Los Angeles Bankruptcy Attorney if you are considering this move.

Continue reading "Record numbers of Los Angeles Residents Seeking Bankruptcy Protection" »

Former major league All-Star outfielder Lenny Dykstra was recently indicted on bankruptcy fraud charges, alleging that he sold items from his $18 million mansion in Ventura County, CNN reports.

Los Angeles Bankruptcy Attorneys work with people who are desperate to put an end to nagging creditor calls and get back on track. Successfully filing bankruptcy and following the laws in place can be highly beneficial to getting people out of debt. Indeed, it can be a new lease on life.

But Bankruptcy fraud is a serious crime and in Dykstra's case, he faces 13 federal charges that could put him in prison for up to 80 years. Along with bankruptcy fraud, he is charged with obstruction of justice, concealing property from the bankruptcy estate, embezzlement and making false declarations to bankruptcy court.

Bankruptcy fraud most often occurs when someone is accused of trying to hide assets. When people file for bankruptcy in California, it means they have to be truthful about all of their assets. Trying to sell off assets outside of the proceedings can lead to criminal charges and serious prison time.

But the reverse is also a danger. If you don't list all of your debts, you could still be responsible for those debts and may not be able to seek bankruptcy protection for years after filing. In some cases, the failure to include assets is a simple oversight. Still, the government may come after you with criminal charges.

In Dykstra's case, the 48-year-old from Murrieta allegedly stripped his Thousand Oaks mansion and denied receiving money for having sold items that were owned by the bankruptcy estate. CNN reports that gold- and silver-plated door knobs, fixtures, furniture, artwork and sports memorabilia was taken and sold.

Californians have different options when considering bankruptcy. It's possible that Chapter 7 bankruptcy is better for you. It's also possible that Chapter 13 bankruptcy in California best suits your financial situation.

You should consult an experienced bankruptcy attorney in Encino, Glendale or Los Angeles to consider the options. Trust someone who has been helping people climb out of debt for more than a decade.

Continue reading "Lenny Dykstra Case Shows Los Angeles Bankruptcy Risks" »

Forbes Magazine recently reported that multi-billionaire Donald Trump has filed for corporate bankruptcy four times in the last two decades.

The story of Trump, a real estate and development mogul, TV star and potential U.S. President candidate, shows why having an experienced Los Angeles bankruptcy attorney is important to dealing with financial challenges -- whether in business or in your personal life.

Trump filed for corporate bankruptcy in 1991, 1992, 2004 and 2009 because his casino and hotel properties in Atlantic City were over-leveraged.Trump Entertainment Resorts operates the Taj Mahal, Trump Plaza and Trump Marina. He has never filed for personal bankruptcy, Forbes reports, which is key in his ability to emerge relatively unscathed financially.

The magazine reports that in the 1990s, Trump used his own wealth to guarantee payment of bonds and interest, causing him to have to sell his Trump Princess yacht, Trump Shuttle airline and his stake in other businesses to pay off about $900 million in personal debt.

Trump has said he was able to use the country's bankruptcy laws to his advantage to restructure debt, free up capital and improve his businesses, just as many successful business owners have done. Trump isn't the only celebrity to use Chapter 11 bankruptcy laws to his advantage.

In fact, many actors, athletes and even a U.S. President have used the law to reorganize their finances. The list includes singer Willie Nelson, boxer and entrepreneur George Foreman and President Thomas Jefferson.

Bankruptcy in California isn't a one-size-fits-all solution. Bankruptcy can be used by businesses as well as individuals and can be used to save your home from foreclosure or buy time to pay off expensive bills or credit card debt.

Continue reading "How Donald Trump Filed for Bankruptcy Four Times and Survived" »

Amid the relative failure of government foreclosure relief efforts, Market Watch reports on a Pennsylvania plan that has been helping homeowners since 1984. The program provides bridge loans for those who have lost their job -- interest does not begin to accrue until a participant's income is restored.

Those looking to Stop Foreclosure in Los Angeles should consult an L.A. bankruptcy attorney about the best course of action to protect their rights. Bankruptcy is just one option. Short sale, strategic default and home loan modifications may be others. However, each comes with challenges and potential consequences, including the possibility of a delinquency judgment. Such a judgment could permit a bank to collect the difference between what is owed on your house and what it brings at foreclosure sale. Chapter 7 bankruptcy will prevent such collection measures.

The HAMP program (Home Affordable Modification Program), has helped just 630,000 of the targeted 4 million homeowners. Republicans are looking to kill the program and even Democrats acknowledge it has been a disappointment -- primarily because banks have done everything in their power to avoid cooperating. Lost paperwork, endless delays, and rejecting qualified applicants are just a few of the tactics employed by banks, which are now making billions by foreclosing on homes. In some cases, a homeowner has been approved for temporary modification. The bank then rejects them for permanent modification and uses the resulting arrears as a reason to foreclose on the home.

We are well past the point where a struggling homeowner in Los Angeles should expect a fair shake from their bank. Consulting an attorney is the best bet to protect the financial well-being of you and your family.

In comparison to government efforts, Pennsylvania's program has kept the state's foreclosure rate 23rd lowest in the nation -- despite being in the top half of states with the highest unemployment rate.

It's cheaper, too. Using foreclosure on a hypothetical $210,000 mortgage, the government program would cost taxpayers $13,600 while Pennsylvania's program would cost just $1,620. Meanwhile, nearly 80 percent of the Pennsylvania participants are able to stay in their homes.

Continue reading "Bankruptcy in Los Angeles one option for Foreclosure Defense " »