Modesto Bankruptcy Lawyer Blog

Many Modesto residents are currently going through or considering Chapter 7 or Chapter 13 bankruptcy. While bankruptcy can be a huge relief for many people, it is not a process to be taken lightly. In Louisville, a federal bankruptcy judge recently froze the assets of a local businessman after allegations that he fraudulently transferred funds to his ex-wife in order to hide his assets from the court.

Randall Waldman was slapped with a $3.2 million judgment back in October of 2009 for defrauding a tool company owner, Ronald Stone. After that judgment, Stone's lawyers alleged that Waldman had his lawyer switch his two roofing businesses into his ex-wife's name in an attempt to hide his assets. He now faces even larger fines and possible jail time. His lawyer also faces disbarment if the allegations are true.

Bankruptcy is a Serious Matter
It simply doesn't pay to try to defraud the court system when it comes to filing for bankruptcy. If you're having financial difficulties, you don't have to go it alone. Contact a bankruptcy lawyer in Modesto who can help you examine your options for Chapter 13 and Chapter 7 bankruptcy.

Only a qualified lawyer can tell you what your choices are and what a court will and will not allow. Taking matters into your own hands or dealing with a less than reputable attorney can often make matters much worse. Never try to lie to the courts or falsely file for bankruptcy.

When housing prices were up in the mid 2000s, homeowners often hedged their home values against the market to take out home equity loans or lines of credit (HELOCs) in order to pay for various expenses. Some homeowners wisely invested the money back into their homes, making value-added improvements and needed repairs. Others unwisely spent the money on cars, credit cards and other items that would soon depreciate in value.

Now, with the housing market digging out of a major slump nationwide, homeowners are defaulting on home equity loans in record numbers. According to a recent article in the NY Times, lenders wrote off $11.1 billion dollars in uncollectible home equity loans and $19.9 billion in HELOCs in 2009, more than even primary mortgage loans that same year.

Struggling borrowers are contending with not only not being able to afford to repay the loans, but also having far lower home values than when they initially purchased. Lenders are trying to recover money where they can, but many banks are simply writing off losses because so many people can't afford to pay. Buyers, on the other hand, defend their inability to pay, citing that many banks engaged in practices that were unfair to homebuyers, including predatory lending and indiscriminate loan approval for unqualified buyers.

The delinquency rate in the first quarter of 2010 was 4.12 percent, slightly down from the fourth quarter of 2009 (which marked the highest in 26 years). If you are a part of the thousands of Americans struggling to pay back a home equity loan or line of credit, you can work with a Modesto bankruptcy lawyer to settle your accounts.

New census data regarding health care coverage in Stanislaus County is revealing a disturbing trend: nearly 1 in 4 adults (ages 18 to 64) live without health insurance of any kind. This statistic includes both those who cannot afford coverage as well as those who are young and healthy and opt to not pay for health insurance.

Many residents in the Modesto area who need care the most are going without health insurance in lieu of paying for the basic necessities. Among the 40 to 65 age group - those most at risk for chronic disease - a full 15 percent lack the ability to pay for treatment of conditions such as heart disease, diabetes, high blood pressure and cancer. On the other side of the age spectrum, an estimated 16,000 children in Stanislaus County do not have health insurance because their families can't afford it or because they are unaware of state-sponsored programs that provide coverage.

Without insurance, people don't get regular checkups and only have to visit a doctor when medical conditions are dire. This can lead to overwhelming bills for emergency surgery or ongoing treatment. No matter if a parent or a child gets sick, the exorbitant cost of medical bills for the uninsured and underinsured can be enough to drive any family to consider filing bankruptcy.

If you are swamped by incoming and past due medical bills, contact a bankruptcy attorney to examine your options. Chapter 7 or Chapter 13 bankruptcy may offer you choices that you didn't know you had. You can pay down your debts over time or perhaps get rid of your bills altogether.