San Francisco Bankruptcy Lawyer Blog

February 19 promises to be a memorable - even historic - day at British Columbia's Whistler-Blackcomb ski resort. That morning the world's top male alpine ski racers are scheduled to compete at Whistler in the Super-G event of the Winter Olympics. In the late afternoon the medal runs of both the men's and women's Skeleton will take place at Blackcomb's Olympic Sliding Center. Separate from the Olympic hoopla, February 19 is also the day creditors of Whistler-Blackcomb's owner, Intrawest, have set to sell the resort at a foreclosure auction.

Last October Intrawest's owner, a New York-based hedge fund named Fortress Investment Group, missed a $524 million debt payment related to its acquisition of Intrawest in 2006. Last week the creditors, led by Lehman Brothers, announced plans to move forward with the foreclosure sale. Intrawest is a Canadian company, based in Vancouver, but also owns a number of prominent US ski resorts including Winter Park and Steamboat in Colorado, Stratton in Vermont and Snowshoe in West Virginia. Here in California Intrawest runs a large residential resort property at Squaw Valley, though it does not own the ski resort itself.

Vancouver Olympic organizers are clearly a bit embarrassed by the timing of the foreclosure sale but insist it will have no effect on next month's Winter Games.

The take away from this high-profile foreclosure is the importance of managing the debtor-creditor relationship when financial troubles hit. Regardless of the size of the foreclosure you are facing, a San Francisco foreclosure attorney can be a key ally as you work to smooth your way through difficult financial times. An experienced Bay Area bankruptcy and foreclosure professional can assist in negotiations with creditors as well as prepare court filings and other legal paperwork associated with a Northern California foreclosure.

FirstTracksOnline: Ski resort operator Intrawest downplays foreclosure rumors

Toronto Star: Whistler Olympic ski venue faces foreclosure

A recent story that originated with the Detroit News, but has run in newspapers around the country, highlights the fact that bankruptcy can cut the financial legs out from under anyone - even people who might seem to have no financial problems. As the Salt Lake Tribune reports, Luther Elliss was a college football star, first-round NFL draft pick and earned over $11 million in five seasons with the Detroit Lions. Today, he is bankrupt and "relying on area churches and friends to pay bills, his savings depleted."

According to the paper, Elliss notes that when he was in professional football players were required to attend seminars on financial planning. During those sessions, he says, players were given "statistics on how many of us would be broke. Guys were saying 'That's not going to be me. I'm too smart for that.' And, here I am, one of those guys."

Elliss and his wife filed for chapter 7 bankruptcy last summer after losing one of their homes to foreclosure. At that time they listed liabilities that were about three times their reported $1.38 million in assets.

As Elliss told the media, "I made bad choices." That, of course, is a situation that is hardly confined to well-paid professional athletes. It highlights the importance for Bay Area families and business of consulting with a San Francisco bankruptcy attorney as soon as they sense financial trouble brewing, and not when the situation has gone too far to be fixed outside of the courts.

A full-service Bay Area foreclosure and loan modification lawyer can help clients avoid liquidation, and a California chapter 7 bankruptcy; as well as representing you in court should a California bankruptcy filing become unavoidable.

Wall Street Journal: Ex-football star facing bankruptcy, foreclosure

Salt Lake Tribune: Riches to rags: former Ute, NFL star Luther Elliss no longer can pay his bills

In a sign that business conditions remain bad for many in Silicon Valley, the San Jose Mercury News reported recently that around 20% of all commercial office space in the Valley stood empty at the end of 2009 - and that experts believe office vacancies will only rise in 2010.

Citing figures from NAI/BT Commercial, a broker, the paper reports that this is the Valley's worst vacancy rate for four years. It quotes a local economist who notes that, like Bay Area home foreclosures, vacant office space represents a stock of real estate that must be "worked off" as part of the painful process of economic recovery.

As vacancy rates rise, rents are also falling. This situation could, in turn, lead to an increase in Bay Area bankruptcies if a lack of tenants leaves building owners unable to service their mortgages. Signs of a downward spiral of this sort can already be seen. The paper quotes a managing director at Silicon Valley's BT commercial saying some landlords are already in "giveaway" mode, anxious, as the paper puts it, "for any lease revenue they can get in the worst market since at least 1995." A Walnut Creek foreclosure attorney can counsel distressed property owners on loan modifications and other foreclosure prevention options.

Times like these are also a reminder of the importance of planning ahead. Beginning consultations with a San Francisco bankruptcy lawyer at an early stage - well before bankruptcy has become a certainty - can be a decisive factor in how your home or business makes it through these troubled times. A Bay Area bankruptcy attorney with a specialization in loan modification and foreclosure prevention can be a key ally in your efforts to save your property.

San Jose Mercury News: Silicon Valley office vacancies to remain high this year

Northern California's weak economy is affecting everyone but, according to a recent report in the Contra Costa Times a case can be made that the hotel industry is feeling even more pain than the rest of us. The paper reports that over $1 billion worth of Bay Area hotel properties are now in default - about 12 times the value of the hotel properties in default just one year ago.

Contra Costa County loan modifications and other measures companies can take to avoid California foreclosure do not always work. The paper notes that in this distressed economy, "fewer people are traveling for business or pleasure, or finding ways to reduce their expenses when they do travel. Cutting back on hotel stays is one way to cope with a downbeat economy."

With at least 82 Bay Area hotels currently behind two months or more on their mortgages, according to the Contra Costa Times, this is a time when the advice an experienced San Francisco bankruptcy lawyer can offer becomes more important than ever. A full-service Bay Area bankruptcy attorney can offer advice on a wide range of issues, including California foreclosure and foreclosure prevention, negotiations with creditors and loan modification programs.

As the Contra Costa Times indicates, the reasons for the decline in traffic at any particular hotel vary from one property to another. Hotels close to the Oakland Airport, for example, have suffered from a 17 percent drop off in passenger traffic there compared to 2008. An experienced Oakland and Alameda County foreclosure attorney can help make a clear-eyed assessment of your situation, a key first step in getting out from under the debts that trouble you.

Contra Costa Times: Bay Area Hotel Problems Mount

Affiliated Media, owner of the San Jose Mercury News, filed a 'pre-packaged' Chapter 11 bankruptcy Friday, according to Bloomberg News. Affiliated is a holding company which owns the Bay Area paper, as well as the Denver Post and other properties, through its subsidiary MediaNews Group. The filing took place in Delaware, where Affiliated has its corporate headquarters of record.

The move was the 13th bankruptcy filing by an American newspaper publisher in as many months, according to an Associated Press report that appeared on the Huffington Post website. It came despite angry denials by Affiliated last summer that the company was in any financial trouble. Company officials said day-to-day publication of the Mercury News and other papers will not be effected by the pre-packaged Chapter 11 bankruptcy filing.

In a pre-packaged Chapter 11 filing an indebted company and its creditors reach agreement on the resolution of most or all outstanding issues before a bankruptcy petition is filed, and present their agreement to the court at the time of filing. The goal is to move the bankrupt company through the court process much more quickly.

California pre-packaged Chapter 11 bankruptcy filings are a complex option, but one some distressed companies may wish to consider if San Francisco bankruptcy becomes inevitable. If you are considering a pre-packaged California bankruptcy it is imperative that you consult a Bay Area bankruptcy attorney early in the process. An East Bay bankruptcy lawyer can offer advice on the best ways to proceed with a California bankruptcy, and help you consider whether a pre-packaged Chapter 11 bankruptcy filing is possible, and, if so, whether it would suit your situation.

Bloomberg: Affiliated Media files for bankruptcy protection to restructure

AP reprinted at Huffington Post: MediaNews Group Files for Chapter 11 Bankruptcy Protection

The left-leaning Air America radio network abruptly announced yesterday that it is ceasing operations and intends to file for Chapter 7 bankruptcy. Live programming came to an end at 3pm Pacific Time. The network said in a statement that it will air older, pre-recorded, programs over the weekend before going silent permanently on Monday evening.

In a letter to employees the network's chairman, Charlie Kirker, cited economic difficulties in the radio industry where, he noted, ad revenues have been "down for 10 consecutive quarters, and (were) reportedly off 21% in 2009." In San Francisco and the Bay Area Air America's programming aired on AM station KKGN.

Chapter 7 bankruptcy filings are especially serious as they are intended to liquidate, rather than reorganize, troubled companies. A San Francisco Chapter 7 bankruptcy attorney can be a crucial guide through this often stressful process. Liquidation may sound simple, but it is, in fact, often very complex. The advice of a qualified and experienced Alameda County or Contra Costa County bankruptcy and liquidation law firm can be an essential as you seek to navigate the legal system without making a failing company's problems worse than they already are.

Air America, a company that boasted a number of wealthy and prominent liberal backers (former Vice President Al Gore was involved in the network's 2004 launch), but which consistently struggled to find a niche in a crowded marketplace. Its demise is a reminder that any idea can fail to gel, despite deep-pocketed investors and good intentions.

Talking Points Memo: Air America filing for bankruptcy, ceasing live broadcasts

Politico: Air America Declaring Bankruptcy

Air America Press Release

The Irvine-based data company RealtyTrac predicts that 2010 foreclosures will touch the 3 million mark, surpassing even 2009's record total of 2.82 million, according to a recent article published by Bloomberg News.

The news service also quotes a Berkeley professor saying "this will be the peak year" for California foreclosures, with the rising numbers spurred by persistent high unemployment and housing prices that have only barely begun to recover from the drop-off of the last two years.

This is, in short, an economy in which a San Francisco foreclosure attorney remains a key resource if you are struggling to make ends meet in a slowly recovering economy. As Bloomberg notes, the Obama administration has targeted 4 million homeowners nationwide for mortgage relief. Lenders, however, have been reluctant to move ahead with administration-supported loan modification programs. As a result only about 31,000 homeowners actually received 2009 mortgage loan modifications designed to help them avoid foreclosure.

The California foreclosure process can be complex and emotionally stressful. Especially in hard-hit portions of the East Bay, an Alameda County or Contra Costa County foreclosure lawyer can be a key ally, helping you navigate the process and making difficult legalisms understandable.

Bloomberg: U.S. foreclosures may rise to 3 million this year

A recent ABC News profile highlights the fact that Stockton, California was, for much of last year, the single hardest-hit community in the country in terms of America's housing crisis. At one point, 10% of all the city's homes were in California foreclosure. Some homeowners have seen their pre-crash $500,000 homes drop in value to around $200,000 today.

The ongoing distress in Northern California highlights the need for advice from a strong, experienced Bay Area foreclosure lawyer when you are facing this difficult situation. A Stockton or Walnut Creek foreclosure attorney can advise you on the best ways to approach this complex legal process. If you start the process soon enough, he or she may also be able to advise regarding Contra Costa County loan modifications and other ways to avoid foreclosure.

As ABC reports, San Joaquin County, of which Stockton is the county seat, was the fourth-most distressed county in the country with a population greater than 25,000. As a result, "whole neighborhoods have been decimated by the mortgage disaster."

The trying economic times we are all experiencing show no sign of easing in the immediate future. This is a moment when a San Francisco foreclosure lawyer can be an important ally as you fight to overcome bad economic times and emerge stronger for the future.

ABC News: In Foreclosureville, USA, So Much Change

A recent analysis by the San Jose Mercury News indicates that Bay Area bankruptcy filings have reached levels not seen for two decades, with 2009 filings up 50 percent or more compared to 2008 in many parts of the region. Silicon Valley alone saw approximately 11,500 business and personal bankruptcy filings in 2009, according to the paper.

A similar analysis by the Contra Costa Times paints an equally bleak picture in San Francisco and the East Bay: 2009 Contra Costa and Alameda County bankruptcy filings were up 59 percent over the previous year. In San Francisco and nearby San Mateo County the figure was a whopping 62 percent.

The ongoing recession, lagging housing prices and continuing job losses all figure as parts of the broader explanation for these depressing economic numbers. The Times reports that the profile of people filing bankruptcy is also changing, with increasing numbers driven to California bankruptcy filings because of the loss of a job. Financial problems stemming from medical expenses or divorce used to be the most common reason why homeowners were forced to seek Northern California bankruptcy protection.

If economic circumstances leave you forced to consider a personal or business bankruptcy filing, one of your first - and most important - decisions will be the choice of a Contra Costa County or San Francisco bankruptcy lawyer. An experienced Bay Area bankruptcy law firm can advise clients on their options, including the significant differences between chapter 11 bankruptcy, chapter 7 bankruptcy and chapter 13 bankruptcy. A San Francisco bankruptcy attorney can also help you review possible ways to avoid a bankruptcy filing, such as loan modification services.

Contra Costa Times: Bay Area sees boom in bankruptcies

San Jose Mercury News: San Jose area bankruptcy filings at 20-year high

Perhaps unsurprisingly, end-of-year data compiled by the Associated Press indicates that 2009 was a big year for bankruptcies. According to ABC News, the wire service calculates that 1.4 million homeowners filed bankruptcy petitions last year, with California among the worst-hit states. Bankruptcies in California jumped 58 percent compared to 2008, placing the Golden State fourth nationally in terms its percentage increase in bankruptcies, behind Nevada, Wyoming and national leader Arizona.

Nationally, bankruptcy filings increased 32 percent compared with 2008. For December alone the year-to-year increase was 22 percent.

If you are facing the prospect of a Northern California bankruptcy filing it is especially important to contact a San Francisco bankruptcy attorney as early as possible. The earlier consultations begin the easier it may be to make your way through the complex and emotionally-draining process of filing a California bankruptcy petition.

The AP story notes that, nationwide, bankruptcies have been "coming in waves", a fact that indicates December's lower filing numbers may represent only a temporary lull. As the recession continues and more people lose their jobs people who thought they were secure in their ability to meet mortgage payments and other bills find themselves moving closer and closer to bankruptcy court.

A full-service Oakland, Fairfield and Walnut Creek bankruptcy law firm can help you tackle this difficult situation, offering advice on loan modifications and other ways to avoid California bankruptcy while preparing for an orderly filing if bankruptcy becomes inevitable.

ABC News: AP: 2009 Bankruptcies Total 1.4 million, up 32 pct

In a development illustrating how much worse the home foreclosure situation can get, Florida's Supreme Court is ordering the use of managed mediation proceedings as a way of clearing the state's backlog of foreclosure and loan modification cases. The order, of course, does not apply here in California, but since the two states are closely linked as centers of the mortgage and housing crisis it can be seen as an indication of how bad things might soon get.

According to a report in the online industry publication eCreditDaily.com last week's order by Florida's chief justice supported the findings of a task-force appointed by the court itself. It requires lenders and distressed homeowners to meet and attempt to resolve their differences with the help of a legal mediator who is paid a fee of no more than $750. Florida trails only California and Nevada in the number of pending foreclosure actions on the state's legal docket. The court-mandated mediation sessions are an attempt to get a slow-to-stalled system moving again.

In recent months California has enacted new laws regulating California loan modifications. The recent action in Florida raises new questions: Would a mandated California mediation program be a good idea here as well? Especially in hard hit Bay Area districts including Alameda County and Contra Costa County? Is managed mediation actually a good choice for individual homeowners?

These are issues a California mediation attorney is well-situated to help you consider. An experienced Contra Costa County loan modification and mediation lawyer can explain your options and help distressed home and business owners determine whether California bankruptcy or some form of Bay Area mediation leading to a loan modification is best for them.

eCreditDaily.com: Florida's Fix: Can 'managed mediation' stem foreclosures?

The economy still looks dismal and Northern California's housing foreclosure and bankruptcy crisis continues, but consumers can take heart that new laws coming into force offer them some help.

As TV station KCRA reports, Gov. Arnold Schwarzenegger signed a total of 724 bills into law during 2009 and a number of these are designed to help homeowners struggling to make their mortgage payments or seeking California home loan modifications. The best known of these is the state's new law banning the charging of advance fees for loan modification services. This law was declared an "emergency" measure and took effect in October. Other notable bills came into force on the first of the year.

The most notable of these bills, SB 239, makes it a crime to commit mortgage fraud. Until now California mortgage fraud had been prosecuted under the state's existing fraud statutes. Other measures regulate the ways in which purchasers of foreclosed properties can resell those properties and require mortgage loan originators to pass an exam and register with a national database of mortgage professionals.

How all of this affects individuals will vary widely from person to person. That, in turn, makes it more important than ever to have a trusted and experienced Northern California loan modification and foreclosure attorney in your corner. Understanding legal changes can be difficult. A qualified San Francisco bankruptcy lawyer can, however, help you sort through the new laws. The legislature and governor have given consumers new protections and new tools to help them cope with these trying times. Experienced legal help is your path to deriving the full benefits envisioned by these new laws.

KCRA.com: New Laws protect home, car buyers

Spansion, the Sunnyvale-based manufacturer of flash memory, has announced its first quarterly profit since it went public in 2005 and, with that, plans to emerge from California Chapter 11 bankruptcy during the first quarter of 2010.

The Bay Area company declared bankruptcy last March, according to the electronics industry publication EE Times. "By focusing on our core businesses and exiting unprofitable applications, we have shown that our strategy is working to deliver strong financial results," EE Times quoted Spansion's CFO as saying. Third quarter 2008 net income at the firm improved by $135 million year-on-year.

Spansion's news is a reminder that bankruptcy, as traumatic as it can be, holds the potential to be a new beginning rather than merely an end. In making sure the process really is a beginning, a Bay Area bankruptcy attorney can be one of your most important guides and advisors. California chapter 11 bankruptcy is designed to allow troubled companies the time and space needed to reorganize with the goal of emerging stronger once they exit bankruptcy and return to profitability.

Making your way back to profitability after a bankruptcy filing, and exiting court protection, can be as legally tricky as declaring bankruptcy in the first place. A San Francisco bankruptcy lawyer can help you throughout the process: minimizing the pain of declaring chapter 11 bankruptcy in the first place, and helping to keep you on track as you make your way back out of the bankruptcy court system.

EE Times: Spansion plans to emerge from bankruptcy in Q1

There has been much talk about the national economy turning the corner (or at least hitting bottom) sometime soon. A couple of end-of-year analyses took a good news-bad news view with Northern California, as it so often is, at the epicenter of things.

US News & World Report cites an analysis by Mark Zandi, chief economist at Moodys.com, that housing prices will continue to fall before they begin a widespread rebound. Zandi does not expect the housing market to hit bottom until the third quarter of 2010. Of course, this will vary from place to place, even across the Bay Area (the city of San Francisco, for example, has not been hit nearly as badly as many parts of the East Bay), but the overall message is clear: there are at least a few more months of rough sailing ahead for homeowners. That means Oakland, Walnut Creek and Fairfield foreclosure prevention will remain a priority for many homeowners at least for the foreseeable future.

The continued drop in home prices in a market where many Bay Area homeowners are already underwater is likely to mean the local market in California loan modification remains brisk. As I have outlined in earlier blog posts, new state laws on loan modifications make it imperative that you seek out an experienced and reputable Bay Area loan modification attorney as you embark on the process of California foreclosure prevention, and holding onto your property.

The trick in the coming months will be to watch the California loan market and Bay Area foreclosure situation closely. A Contra Costa County bankruptcy and foreclosure prevention attorney can and should be one of your key allies throughout this process.

US News & World Report: 10 Things to Know About Real Estate in 2010

Economist: Off the Road

In the waning days of 2009 news emerged of a significant development regarding Northern California loan modifications. On December 29 Campbell, California-based loan modification company Whitfield Financial was forced to out of business after surrendering its real estate license. According to an article in the Sacramento Bee word of the closure came in a statement from the California Department of Real Estate. The statement noted that Whitfield had actually surrendered its license to the Department a week earlier.

The move marks a very visible effort on Sacramento's part to enforce new laws governing California loan modifications signed last year by Gov. Arnold Schwarzenegger. According to the Bee, Whitfield was accused of collecting advance fees for California loan modifications - a practice that is now illegal in California.

The news regarding Whitfield is a reminder of the importance of working with a reputable Bay Area loan modification attorney if you are considering an attempt to negotiate with lenders regarding your mortgage. San Francisco loan modifications can be a powerful tool for avoiding bankruptcy, mortgage default and foreclosure, but it is important to ensure that the professionals assisting you are working within the law.

The Bee quotes the state DRE as saying "it has 1,300 pending investigations of complaints against California loan modification firms." That is good news from a consumer protection standpoint, but it reinforces the need to choose carefully when selecting a San Francisco, Oakland or Contra Costa County bankruptcy professional to assist with your loan modification efforts.

Sacramento Bee: Whitfield financial surrenders its license

The final round of housing and foreclosure data for 2009 was released as the year drew to a close. The numbers cover October, and contain some surprisingly good news regarding California foreclosures.

According to a brief analysis published earlier this week in the New York Times, seasonally-adjusted "price recovery in California seems to be strong." This is in contrast to Florida and Nevada - both, along with California, among the worst hit parts of the country in the housing and foreclosure crisis - where housing prices fell again in October. This, the paper reported, "could mean foreclosure sales are once again dragging prices down." The newspaper was looking at data from S&P Case-Schiller.

In San Francisco and throughout Northern California, Bay Area foreclosure prevention efforts consumed much of 2009. In addition to helping families keep their homes, Contra Costa and Alameda County foreclosure prevention also helps stem the broader slide in the region's housing prices.

When tackling this complex area of financial and real estate law it is especially important to seek the advice and assistance of an experienced San Francisco foreclosure attorney. Loan modification, foreclosure and bankruptcy prevention are all areas in which a Bay Area bankruptcy lawyer can offer help. The fact that we wrapped up 2009 with a smattering of good news does not change the fact that 2010 promises to be another challenging year both for the country's economy as a whole and for the Walnut Creek and broader San Francisco and Oakland housing markets in particular.

New York Times: Bubbles keep bursting