ARTICLES
San Diego Chapter 13 Bankruptcies Rise Again in Q3 2009
February 17, 2010
Before Q4 2009 data is released on Chapter 13 filings in San Diego, let’s take a look back at the Q3 2009 numbers to see what we can expect in next month’s release.
If you recall in previous articles on bankruptcy data in San Diego, attorney Cecilia Chen noted that she expected Chapter 7 and 13 fillings to increase. Turns out she was right.
Families are coming in more and more to file for Chapter 7. They generally do not have enough income to qualify for Chapter 13.
I do think that Chapter 7 and 13 bankruptcy filings will continue to increase in year 2010 and beyond because unemployment has not abated and we are currently in a false sense of stability. Next year, government interventions will start to disappear, shadow inventory (houses that banks now hold but have yet to put up for sale) will hit the market and mortgage rates will start to rise. I’m also seeing credit card companies are also increasing the interest rate and minimum monthly payments, creating a significant hardship on many families in San Diego.
Although there have been increases in filings in both Chapter 7 and 13, the rate at which people are filing has in fact flat-lined. (more…)
San Diego Chapter 7 Bankruptcies Set New Records in Q3 2009
February 15, 2010
As we await the release of fourth quarter chapter 7 bankruptcy data for the San Diego area let’s take a look at the numbers of Q3 compared to previous periods in 2009.
The graph indicates the continued 2009 upward trend of Chapter 7 bankruptcies claims in San Diego. Claims have increased 3x since 2007 and broke another record for filings in Q3 2009 (since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was written into law).
Bankruptcy filings are one of many indicators that our financial system is still dealing with debt loads larger than we can handle. The Chapter 7 numbers include mostly consumer related filings. Nonetheless, there are positives in the numbers despite the all time high of 15,407 filings in the San Diego area.
Bankruptcy Part 3 Q&A: Podcast Transcript
February 4, 2010
Here is a similar transcript to review from a podcast on the topic of bankruptcies in San Diego found here.
Q. How does bankruptcy work if you’re married? Spouse with different credit ratings.
In a community property state such as California, both individuals will have to report their income if they married regardless of whether they file jointly or without their spouse. If both spouses file, the bankruptcy will affect their credit rating; if all the debt are in both spouses name both will have to file. If everything is kept separate and all the debts are in one spouses name (particularly if incurred prior to couple becoming married), it is possible that only one will have to file. (more…)
Bankruptcy Part 3: Private Information and Home Equity
February 2, 2010
Podcast: Play in new window | Download (Duration: 8:26 — 3.9MB)
Another podcast brought to you by the Law Office of Cecilia Chen, the final segment of a series on bankruptcy.
This is part 3 of a 3 part series discussing questions on the topic of bankruptcy. All of our information is provided with the California legal system in mind, specifically devoted to San Diego and area. (more…)
Bankruptcy Q&A: What Assets are Protected and How Much Do Bankruptcy Lawyers Cost?
January 28, 2010
Here is a written version of our podcast #2 on the subject of bankruptcies in California
Q. What is protected in bankruptcy in California
A. Most people do not lose any of their belongings and necessities in bankruptcy. The end goal of bankruptcy is to get you back on your feet financially. Therefore, your basic necessities such as furniture, clothing, etc. are protected in bankruptcy, so as to help you re-establish yourself. The equity in your home and car, and most of your personal belongings will, in all likelihood, be protected in bankruptcy.
Having said that, the actual bankruptcy statutes that protects your assets in bankruptcy are very complicated. In California, there are two sets of exemption statute a person can choose from depends on the type of assets and amount of equity in question, you should consult an attorney to maximize the protection that you are afforded under Bankruptcy Law. (more…)
Bankruptcy Part 2 of 3: How Much is an Attorney and What is Protected in bankrtupcy?
January 26, 2010
Podcast: Play in new window | Download (Duration: 7:53 — 3.6MB)
Welcome to another podcast brought to you by the Law Office of Cecilia Chen. The purpose of these podcasts is to provide listeners with legal information pertaining to a variety of subjects including bankruptcy, real estate, estate planning, and corporate law.
This is part 2 of a 3 part series discussing questions on the topic of bankruptcy. All of our information is provided with the California legal system in mind, specifically devoted to San Diego and area. (more…)
Podcast 1 Transcript: Difference Between Chapter 7 and 13 Bankruptcies
January 21, 2010
Every time we launch a podcast we provide a written transcript that covers the questions that were asked and the answers from Cecilia Chen. Here is the transcript from our first podcast located here:
Q. What is the difference between Chapter 7 & 13 bankruptcies?
A. Chapter 7 bankruptcy by and large allows debtors to discharge all of their unsecured debts (credit card debts and medical bills) within a 4 month period. Chapter 13 offers a debtor the chance to restructure their debts and catch up on areages and back taxes over a 3-5 year repayment period. (more…)
Bankruptcy Podcast – Part 1 of 3 – San Diego Bankruptcy Questions Answered
January 19, 2010
Welcome to the inaugural podcast from the Law Office of Cecelia Chen. We have decided to provide our clients and future clients with new ways to gather information pertaining to a variety of legal questions. In this particular series we will focus on answering some basic questions pertaining to the topic of bankruptcies.
Questions include: what is the difference between Chapter 7 and 13 bankruptcies, and what are the pros and cons of each?
Podcast: Play in new window | Download (Duration: 5:31 — 5.1MB)
Music for this podcast courtesy of Pitx.
San Diego Chapter 13 Bakruptcies Steadily Rising in 2009
December 18, 2009
The news doesn’t come as a surprise. Chapter 13 bankruptcy filings in San Diego have steadily increased from the second half of 2006 and have broken quarterly records ever since.
Chapter 13 (visit the link to visit the US Court web site for a Chapterc 13 bankruptcy basics page) bankruptcy claims have risen rapidly since the credit crunch that hit America in October 2008. However, although the recession has contributed to more filings, it certainly has not been the only cause, in fact Chapter 13 filings have increased since late 2006 (other than a significant decline in the first quarter of 2007).
San Diego Chapter 7 Bankruptcies up 200% in 2009
December 16, 2009
Comparing 2007 to 2009
Chapter 7 Bankruptcies in San Diego have increased three fold since 2007 and is currently set to break another record for filings this quarter (Q3 2009) since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was written into law.
There is an obvious increase in Chapter 7 (visit the link to visit the US Court web site for a Chapter 7 bankruptcy basics page) bankruptcy claims stemming from the credit crunch that hit America in October 2008. Bankruptcy filings were one of many indicators in our financial system that pointed to an increase in debt loads which correlated to the overall unmanageable risk to the system. However, although the collapse of our financial system has contributed to an increase in fillings, the numbers have in fact been increasing since late 2006.
