Bankruptcy Lawyer Blog

This is a very sensitive subject these days. The New York times has a great bankruptcy article about Detroit and the plans for a possible restructuring plan.

Congress has given Detroit’s flailing automakers less than two weeks to come up with a restructuring plan that would justify giving them tens of billions of taxpayer dollars and ensure that they have a reasonable path back to profitability. We hope it is a good plan, because the lame-duck Congress does not have a choice.

We will see if something gets done about Detroit and the Big 3 automakers. I have mixed emotions about the whole thing, but right now I think of this quote: “If your daughter falls out of a tree, you don’t stop to lecture her on climbing trees, you take her straight to the hospital.” Well clearly the Big 3 need a long stay in the infirmary, we shall see if that comes to pass.

With the Dow taking another fresh hit, many people should strongly start considering personal and/or business bankruptcy. Even Berkshire Hathaway took a huge hit and is now in the $2,500 range for the Class B shares, uncharted territory for sure. Here in Seattle things have been relatively mild, except for the famous collapse of Washington Mutual. I worked with a lot of people at PricewaterhouseCoopers that eventually went over to WAMU and it’s a tough time for many of them trying to find work.

If you are worrying excessively about your financing, consider all your options. If you have any inkling that bankruptcy may be an avenue you want to pursue consider getting free professional bankruptcy advice from a licensed attorney. It never hurts to fully explore your options.

Every passing day seems to bring a little bit more negative news for the nations businesses. There is an alarming number of retailers that are entering Chapter 11. Most of the time Chapter 11 is a short stay for a retailer so they can reorganize, obtain new financing and then get things rolling. These days Chapter 11 is a short stay, where financing can’t be found and most companies are skipping right to liquidation.

And most of the news around business bankruptcies are focused on large public corporations. There’s been little discussion of the small businesses out there, but they are hurting. Many small companies should consult with a business bankruptcy attorney to determine their options. If you have an LLC or an S Corp and things are going downhill it would be wise to consult with a lawyer, especially if you are considering putting in more of your own money. There are assets that you will not want to put into your business and doing this too often could be construed as “piercing the corporate veil” and will make it harder for you to separate your business assets from your personal assets - a critical step in the event of a business bankruptcy.

If you are considering your financial options, make sure you ask an attorney if he/she offers free bankruptcy consultations. There are many things you need to discuss before you make the decision to file for chapter 7 or 13 (or chapter 11 if you have a business). It would be useful to bring a list of assets to the initial meeting as there are many key facts you should know. For example certain asset classes can be protected during a potential bankruptcy filing - 401K’s, homes, cars among others (this is not an exhaustive or necessary accurate list, consult with an attorney in your state for your spefic protected assets).

Filing bankruptcy will cost you money, but it can also bring you peice of mind. Don’t let the fear of bankruptcy keep you from going over your options with a licensed attorney. Most bankruptcy attorneys that I know lament the fact that clients often come to them 6 months too late after the client has liquidated every asset they own when they didn’t necessarily need to do that. Take advantage of a free bankruptcy consultation today.

The fate of the Big 3 automakers is definitely up in the air right now. Obama is signalling strongly that he is in favor of some sort of bailout for the Big 3. If the Big 3 don’t get bailed out, there will have to be massive layoffs starting almost immediately. Assuming that there were at least 200,000 US employees at the Big 3, the metric many people use for jobs dependent on Ford, GM and Chrysler are 10 to 1. So roughly 2 million jobs are up in the air right now, though by no means would they all evaporate instantly even under the most pessimistic scenarios.

Many of these jobs are located in the Midwest so if people start losing jobs in massive numbers, there will be a huge surge in bankruptices in Ohio, Michigan, Wisconsin and many of the surrounding states. It could get pretty overwhelming quickly for the lawyers in these states and I would expect the huge uptick in demand could bring a lot of other lawyers in the bankruptcy niche.

If Spanish is your primary language, you should take a look at our directory and find a Spanish Speaking Attorney to help you out with your personal financial situation. Many of the lawyers in our directory have someone on site that can help you out if Spanish is your native language. Don’t be afraid to call an attorney today and make sure to ask if they accept free consultations.

If you are in Arizona and looking for a Spanish Speaking Lawyer in Arizona check out the Bankruptcy Attorney in Phoenix, Nathan Brelsford. He can help you out with a free bankruptcy consultation and will take ownership of your situation and give you professional counsel that you can rely on.

Southern California is going through a tough time right now. In the Wall Street Journal they have profiled small communities where close to 70% of the homes are underwater and people are in danger of foreclosing. If you live in a house that is now worth less than what you paid for it, all is not lost, not even close. If you plan to stay in your LA home for longer than 7-10 years, prices will probably get back to 2004 or 2005 levels.

If for some reason you need to move for a new job, then you might have a problem. I have a friend who’s a national recruiter and he said that one of the biggest obstacles to getting people into new jobs lately is that they can’t move because they owe more on their house than it is currently worth. Some companies are stepping up to the plate and paying the difference so you can get move out of your current home to a new city, but this is pretty rare.

If you are looking to explore your options, consider consulting a Los Angeles Bankruptcy Lawyer. Many lawyers in our directory offer free bankruptcy consultations - it never hurts to explore your options.