California Family Law Blog

San Jose Bankruptcy Attorney  comments on one of Britain’s most expensive divorce battles.

One of Great Britain’s most expensive, and most public, divorce battles took an unusual turn last week when Michelle Young was evicted from her £8,666 per month Regent’s Park Townhouse for failure to pay the rent.  Mrs. Young is in a heated divorce battle over her husband Scot Young’s estimated £400 million fortune.  Mr. Young claims he is on the verge of bankruptcy and owes creditors £27 million.

Mrs. Young is asking for half of Mr. Young’s fortune, and she is alleging that he has hidden many of the assets.  Mr. Young counters that his empire has been hit hard by the current recession and decline in property values and that he has nowhere near the wealth that his wife alleges in her divorce filing.

As their divorce case has dragged on, Mr. Young has not paid any spousal support for nearly a year and their children’s private school tuition has gone unpaid since spring.  More than £24,000 in rent has been  unpaid on the townhouse, which led to the recent eviction. Mr. Young is contending that Mrs. Young has not adapted to the new economic reality and continues to live in a manner that exceeds his and her means.

Mr. Young’s financial empire is mostly in real estate, and he recently sold the family’s £19 million home on the Wentworth Park Estate in Egham, Surrey, to Boris Berezovsky, the Russian oligarch

Wife in £400m divorce battle with 'broke' tycoon downsizes after eviction from townhouse, Mail Online, November 26, 2009

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney  comments on Estelle Walgreen’s rise from the ashes of bankruptcy, losing her home, and a divorce, to launching a Hispanic new media company.

Estelle Walgreen has made headlines for much of her life.  Once married to and now divorced from Charles Walgreen, an heir to the company fortune, Ms. Walgreen made headlines in 2006 when her three pet pigs she was raising on her Lake Forest estate became the center of a public policy controversy.   She lost her multi-million dollar home when a fast-growing industrial firm she co-owned filed for bankruptcy. Now the mother of two has returned to her Hispanic roots, where she was crowned Miss Mexico of Chicago's Mexican Independence Day festivities in 1981.

The former Estella Gonzales , a former investment analyst, is launching Hispanically Speaking News, a website targeting coverage of Chicago’s Latino community.  The bilingual site will summarize news and sports, dispense financial advice, offer links to leading Mexican newspapers and track anti-immigration bills in U.S. legislatures.  It will employ three barrio reporters in the city’s Hispanic neighborhoods, and she hopes the site is profitable within 18 months.

Ms. Walgreen’s descent into bankruptcy began with a company that supplied Harley Davidson and Motorola Inc.  The company grew a hundredfold, but in 2006, it became one of the early victims of the crushing credit crunch that has crippled the U.S. economy.  When the company filed for bankruptcy, it owed Lasalle Bank more than $6 million, all of which Ms. Walgreen had personally guaranteed. The ensuing bankruptcy negotiations cost Ms. Walgreen her beloved home.

But it is a new day in the Windy City.  And Estelle Walgreen is hoping that her brand of ethnically-targeted news will allow her to put some of the past behind her.

News after swine, Crain’s Chicago Business, November 16, 2009

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney  comments on a lawsuit filed by a West Virginia woman against the state over unpaid child support following her ex-husband’s bankruptcy.

A West Virginia woman is suing the state Department of Health and Human Resources because she alleges that it did not file her child support claim in a timely manner following her ex-husband’s bankruptcy filing.   The suit asks for damages of more than $15,000 in lost and unpaid child support.

The woman, Carmel Johnson, and her ex-husband, Lon Robert Davis, divorced nearly 20 years ago.  However, he was ordered to pay child support from August 19, 1997 to August 19, 2007.  In 2006, Davis filed for bankruptcy protection in West Virginia.  On his bankruptcy petition, Johnson and the Bureau for Child Support Enforcement were named as creditors.  Under the current bankruptcy laws, domestic support obligations such as child support and alimony are not dischargeable in bankruptcy.

The Child Support Enforcement agency scheduled a hearing the bankruptcy petition, and the hearing was postponed until 6 months after the statute of limitations had expired.  Johnson is suing for $15,143 in unpaid child support, plus interest and attorney fees.

It is extremely important to make sure that your divorce attorney is notified if your former spouse files for bankruptcy protection.  While child support and spousal support cannot be discharged in a bankruptcy decree, they can, as this case demonstrates, get hung up in procedural errors that can tie up the money that is rightfully yours.  Keep your attorney posted on any of these types of proceedings.  The small cost of the attorney’s fees will be dwarfed by any lost support obligations.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney  comments on mother accused of drowning her 3-year old who had recently been through a bankruptcy and divorce.

A Sacramento mother accused of drowning her 3-year old daughter had undergone a host of personal issues within the last year including allegations of domestic violence, divorce and bankruptcy.  Added to her legal troubles are charges of murder and an alleged immigration violation.

Anul Ram filed for bankruptcy in 2008 with her debts more than doubling her assets.  From the court filings it appears that most of her financial issues were related to property co-owned with her ex-husband.  During that same time period she filed for divorce from her husband.

Her husband called police asking them to make a welfare check on his children. When police arrived at Ram’s apartment the 3-year old girl was unresponsive and later pronounced dead at the hospital.  The 7-year old boy in the home was unharmed.

While this is an extreme case, the incidences of irrational behavior by people undergoing financial stress and divorce are well-documented.  If you believe that your spouse may do something to harm one of your children, let your family law attorney or bankruptcy attorney know.  They can help you ensure that your children can be kept in the place that will provide them with the safest possible environment.  No parent should have to wonder if they will ever see their child alive again when they drop them off at their ex-spouse’s home as part of a child custody arrangement.

Mother accused in drowning had filed for bankruptcy, Sacramento Bee, November 16, 2009

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney  explains how better financial education for couples could reduce the instances of divorce and bankruptcy.

A recent article published in Australia raised the question of whether better financial education could reduce the instances of bankruptcy and divorce.  It’s an interesting thought, since financial stress is one of the leading causes of divorce and separation.  Ironically the financial stress that is there when two people, often with two incomes, are living together doesn’t go away when they are trying to maintain separate households and pay spousal support and child support.

Some of the issues that lead to the financial issues that can strain marriage include lack of budgeting, poor spending habits, overuse of credit cards, along with unemployment, declining home values and wide fluctuations in the stock market battering the net worth of families.

Good financial skills can help prepare for many of these situations.  Learning to live within a budget, to not overuse credit and setting aside money in a rainy day fund for emergencies are all tools that can be learned wherever you are in a marriage.  Even bankruptcy doesn’t have to be the death knell of a marriage.  In many instances a Chapter 7 or Chapter 13 bankruptcy can give you the breathing room to get your feet underneath you as you reestablish your financial future.  Your bankruptcy attorney can explain what can and cannot be discharged in bankruptcy, and how it may benefit you in your situation. The financial counseling classes that are now required for bankruptcy filers are a good place to start to get rid of any bad financial habits that may have developed.  It’s never too late to break a bad habit and  get yourself on the way to wealth instead of the road to debt.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney  comments the divorce, bankruptcy, and foreclosure that drove Jason Rodriguez to go on a shooting spree at his former employer.

America was horrified last week when Jason Rodriguez, a former engineer, returned to his former employer and began shooting, killing one and wounding five others.  Rodriguez’s life had been in a downward spiral for some time.  His wife had filed for divorce, he was behind on child support, and he had lost his home to foreclosure and had filed for bankruptcy protection.  These factors, along with an alleged mental illness, drove Rodriguez to his deadly rampage last week.

According to his bankruptcy filing, Rodriguez was behind on child support, and owed more than $90,000 in bills.  After losing his job as an engineer, he worked in the fast food industry and a brochure on unemployment benefits was on his car seat the day he was arrested.  Rodriguez offered little explanation for his actions other than he was going through a tough time personally.  His attorney claims that Rodriguez is mentally ill, and his former mother in law said he is schizophrenic and prone to paranoia.

If you find yourself in a situation where you are in need of help with a divorce settlement or child support, consult a San Jose Divorce attorney, who can show you your options and help you devise a plan to manage your obligations.  Your attorney can help you locate specialists, such as bankruptcy attorneys and financial counselors who can assist you during these difficult economic conditions.

Shooting spree at Orlando office appears driven by suspect's failures in life, San Francisco Examiner, November 7, 2009

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney  comments downward spiral of former NFL quarterback Bernie Kosar into divorce and bankruptcy.

According to media reports, former NFL star Bernie Kosar’s life after football has spiraled downward into a series of failed business ventures, divorce and bankruptcy.  The former University of Miami and Cleveland Browns star quarterback’s wife filed for divorce in 2007 alleging that Kosar was acting irrationally and giving away their money.   Kosar filed for Chapter 11 bankruptcy protection in June.  Chapter 11 is typically used for business reorganization during bankruptcy, but it is also used by high net worth individuals who exceed the asset limits for Chapter 13 bankruptcy.

Kosar listed assets between $1 million and $10 million and debts between $10 million and $50 million.  Included in his list of creditors are more than $3 million owed to his wife as part of their divorce property settlement.  He also has a $4.2 million judgment from a bank, $1.5 million owed to the Cleveland Browns, and $725,000 owed to the owner of the Cleveland Gladiators.

Kosar blames his trusted financial advisors for many of his problems, claiming that they have mismanaged his funds and even lost $15 million in a short period of time.  But he isn’t interested in having a public fight with his ex-wife.  Instead, he is focused on being a single parent and helping his four children through the next phase of life.  The divorce and bankruptcy are soon to be behind him and he is looking forward to guiding his daughters as they grow into young women.

If you are facing divorce, consult a San Jose Divorce Attorney, who can guide you through your options.  Their expertise can save you from a great deal of heartache later on.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Family Law Attorney  explains how judges may consider your financial situation, including bankruptcy, when establishing domestic support in a divorce.

If you are going through a divorce, you should know that judges can take a wide range of factors into consideration when establishing domestic support obligations, such as child support and spousal support or alimony.  Whether you are the custodial parent or non-custodial parent, here are some thoughts to keep in mind.

Income plays a large role in determining support.  If there is a significant income disparity between the parents, the one with the lower income may receive support, especially in the cases of split-custody, or where the lower-earning parent is the custodial parent.  The family’s standard of living prior to the divorce is considered, as are the number of children and any special needs the children may have.

If the non-custodial parent is unemployed, has health problems, or has filed for bankruptcy protection, the judge may consider the inability to pay support altogether and may temporarily suspend child support payments until the parent finds a better job or circumstances change.  After the circumstances change, the judge may order the non-custodial parent to reimburse the other parent for the suspended payments.

The court may provide for the earmarking of funds for specific items, such as school fees, day care or medical expenses.  For example, the court may require parents to pay tuition fees directly to their child's school, rather than remitting money to the custodial parent.  To decide what is best for you, please consult an attorney.

Here at Sagaria Law, we offer a full range of family law and legal services including  divorce,  paternity, adoption, child custody and visitation matters, child support, spousal support, alimony, juvenile dependency, domestic violence, division of property, grandparent visitation and custody, etc. We have seven California locations including San Jose, San Francisco, Redwood City, Fremont, San Diego, Roseville and Sacramento. We offer a free thirty minute consultation, either in person at any of our offices, or over the phone. Call our offices today and we can connect you with an attorney immediately or we can schedule your free consultation with one of our family law attorneys : (408) 279-2288 or (800) 941-6730 or visit www.sagarialaw.com

San Jose Family Law Attorney explains how to protect your financial interests in a divorce if you think your spouse may later file for bankruptcy protection.

If you are going through a divorce, you may be better served by seeking more spousal support and child support, and less physical property, in the property settlement if you suspect your spouse may be considering filing for bankruptcy.  The advantage to you is that domestic support obligations are no longer dischargeable in bankruptcy.  So even if your spouse files for bankruptcy, the spousal support and child support obligations do not go away.

Property settlements, however, can be discharged in bankruptcy.  Even worse, they can come back to bite you if your name is on the loan document when your former spouse files for bankruptcy.  In that event, the lender may come after you for the entire amount owed, instead of just the part that was awarded to you in the property settlement.

Bankruptcy courts have the task of determining what is considered support and what is a property settlement.  Some of the criteria they use include asking:

Does the obligation terminate or reduce with the occurrence of certain events, like remarriage or a child turning 18?

• Is the obligation in installments or a lump sum?
• Are there minor children?
• What is the relative health and education of the parties?
• Was there a need for support at the time of the divorce?

So if you think your spouse is contemplating bankruptcy after your divorce is final, you'll want to word your property settlement in such a way that your soon-to-be-ex's obligation looks and acts as much as possible like a support obligation instead of a property settlement. That is so simply because support obligations are more difficult to have discharged in bankruptcy court.

Here at Sagaria Law, we offer a full range of family law and legal services including  divorce,  paternity, adoption, child custody and visitation matters, child support, spousal support, alimony, juvenile dependency, domestic violence, division of property, grandparent visitation and custody, etc. We have seven California locations including San Jose, San Francisco, Redwood City, Fremont, San Diego, Roseville and Sacramento. We offer a free thirty minute consultation, either in person at any of our offices, or over the phone. Call our offices today and we can connect you with an attorney immediately or we can schedule your free consultation with one of our family law attorneys : (408) 279-2288 or (800) 941-6730 or visit www.sagarialaw.com

San Jose Family Law Attorney comments on the bankruptcy and divorce saga of the Advantage Rent-A-Car owner.

When Denny Hecker’s auto empire of 26 automotive dealerships, the Advantage Rent-A-Car chain and other businesses filed for Chapter 7 bankruptcy protection, he never envisioned that it would become a personal issue embroiled in a bitter divorce with his wife Tamitha.  But the bankruptcy liquidation of his assets is now tied up in family law court as well as Ms. Hecker.

As the bankruptcy trustee prepares for a public auction of Mr. Hecker’s assets including Rolex watches, a Cartier travel clock and numerous personal jewelry items, Ms. Hecker is questioning how her husband is spending $25,000 per month while unemployed, bankrupt, and contesting her request for $7,500 per month in alimony and child support for her and the couple’s two children.

The December 2008 business bankruptcy filing was prompted by Chrysler Americas LLC and other creditors demanding payment on several hundred million dollars debt.  Mr. Hecker filed for personal bankruptcy in June to deal address his more than $760 million in debt.  He is the subject of a federal grand jury investigation and state investigations into allegations of forgery, conspiracy, money laundering, and mail, wire and bankruptcy fraud. Some of the allegations state that Mr. Hecker sought to defraud lenders by seeking loans for more than he was entitled to as he desperately sought to keep his business empire from crumbling.

Federal grand jury considering charges against Denny Hecker, Star-Tribune.com, September 18, 2009

Fallen Auto Magnate Faces Grand Jury Probe, Wall Street Journal, September 21, 2009

Bankruptcy Plus Divorce Equals Major Drama, Wall Street Journal, October 13, 2009

Here at Sagaria Law, we offer a full range of family law and legal services including  divorce,  paternity, adoption, child custody and visitation matters, child support, spousal support, alimony, juvenile dependency, domestic violence, division of property, grandparent visitation and custody, etc. We have seven California locations including San Jose, San Francisco, Redwood City, Fremont, San Diego, Roseville and Sacramento. We offer a free thirty minute consultation, either in person at any of our offices, or over the phone. Call our offices today and we can connect you with an attorney immediately or we can schedule your free consultation with one of our family law attorneys : (408) 279-2288 or (800) 941-6730 or visit www.sagariaw.com.

San Jose Family Law Attorney explains the spouse receiving support should try to maximize the amount of domestic  support vs. a property settlement in a divorce decree.

Persons going through, or contemplating, divorce should do some planning with their family law attorney if they believe they will be receiving child support or spousal support as a result of the divorce.  Recent changes to the bankruptcy laws make domestic support a much more attractive option than a property settlement.

If the divorce decree has a significant property settlement within it, the property may be at risk if the former spouse files for Chapter 7 bankruptcy protection.  While you may each own half of the property, if your spouse files for a bankruptcy liquidation, the bankruptcy trustee can liquidate their ownership interest in the property, which may force you to raise cash in a hurry or sell the property to satisfy the creditor who will now be pursuing the entire debt from you. To decide what is best for you, please consult an attorney.

By contrast, domestic support is not dischargeable in bankruptcy.  So if your spouse files for bankruptcy, it does not remove the child support or alimony payments.  The 2005 bankruptcy reform law moved domestic support to the front of the creditor line to ensure that bankruptcy laws were not used to shirk responsibility for domestic support obligations.

Your family law attorney can guide you through the property settlement process to ensure that you receive the best possible settlement for you and any children that you may have.  If necessary, your attorney can consult with a bankruptcy attorney to ensure that your settlement will stand up to a bankruptcy filing by your spouse.

Here at Sagaria Law, we offer a full range of family law and legal services including  divorce,  paternity, adoption, child custody and visitation matters, child support, spousal support, alimony, juvenile dependency, domestic violence, division of property, grandparent visitation and custody, etc. We have seven California locations including San Jose, San Francisco, Redwood City, Fremont, San Diego, Roseville and Sacramento. We offer a free thirty minute consultation, either in person at any of our offices, or over the phone. Call our offices today and we can connect you with an attorney immediately or we can schedule your free consultation with one of our family law attorneys : (408) 279-2288 or (800) 941-6730 or visit www.sagarialaw.com