Bankruptcy Law Blog

In a severe blow to Jazz lovers in the area, the Sacramento Traditional Jazz Society filed for Chapter 7 bankruptcy protection this week, putting an end to the Sacrament Music Festival, previously known as the Sacramento Jazz Jubilee. The non-profit filed a voluntary petition for Chapter 7 bankruptcy protection with the US Bankruptcy Court of…

Sometimes, paying to go broke doesn’t seem like the most logical or straightforward answer to debt relief. In fact, requiring a fee to file bankruptcy, to some, seems like an oxymoron. Nevertheless, in order to discharge debts using Chapter 7 bankruptcy, there are filing and attorney fees that must be paid in order to escape…

In bankruptcy, a creditor’s claim is a right to payment by a debtor. In turn, a debt is defined as a liability on that claim. So in other words, when we say that a creditor has a claim in a bankruptcy case, they have a right to be paid from the proceeds on any Chapter…

Having to face a lawsuit is by far one of the most stressful things a person can endure. By filing for bankruptcy protection, you are automatically given what is called an “automatic stay” which legally stops creditors from collection activities, including lawsuits which they are pursuing against you. Stop Debt Lawsuits The automatic stay prevents…

When one files for bankruptcy their debts are divided into three main classifications to determine what they will have to pay back and what will be wiped out. The three classifications of debts are secured, unsecured, and priority. Priority debts or priority claims are special types of unsecured debts, meaning they aren’t backed by any…

When you file a petition for Chapter 13 bankruptcy protection, you present a payment plan that, once approved, obligates you to make monthly payments to the bankruptcy trustee, who will then pay your creditors with the money. In order to obtain a discharge of your remaining unsecured debts, or have them wiped out at the…

Faced with over $2.5 million in debt, the Cedarville California-based Surprise Valley Health Care District filed for Chapter 9 bankruptcy protection this week. The company is the owner and operator of a 26-bed hospital named Surprise Valley Hospital, located in Modoc County and provides medical services to an estimated 1,500 people. The hospital’s board of…

Bankruptcy is a legal procedure which allows individuals, businesses, and even government entities to eliminate debt with the protection of the federal bankruptcy court. A bankruptcy case is filed under one of the chapter of title 11 of the United States Code, or more specifically, the U.S. Bankruptcy Code. For individuals, most bankruptcies fall under…

A recent survey by CareerBuilder showed that over 75% of households in America are living paycheck-to-paycheck. This issue, exacerbated by overspending, is potentially dangerous especially without an emergency savings account or line of credit. The report highlights an overreaching problem for Americans that we spend everything we earn and then more through going into debt.…

A personal guarantee is an agreement to make oneself personally liable for a debt to a lender. These are often used by small business owners to secure lines of credit by putting up their personal assets to repay the loan. Personal guarantees play an important role in small business in America. Many banks understand that…