Modesto Bankruptcy Lawyer Blog

The number of January bankruptcy filings dipped below 100,000 last month for the first time in a year. January 2010 was the last time fewer than 100,000 filings were recorded, according to the National Bankruptcy Research Center, which reports filings were down 22 percent compared to December.

Bankruptcy lawyers in Stockton and Modesto continue to see consumers seeking Chapter 7 protection and Chapter 13 bankruptcy in record numbers throughout the U.S. Bankruptcy Court's Eastern District of California.

Primary drivers of bankruptcy filings continue to be foreclosures and bad real estate debt, unemployment, medical bills and insurmountable credit card debt. January filings totaled 3,924, up 5.7 percent from a year ago. By comparison, just 1,829 were reported in the Eastern District in January 2005.

Last year, 54,365 sought bankruptcy protection in the Eastern District of California, compared to 17,397 in 2007, before the economic downturn.

Nationwide, about 1 in every 3,000 people sought bankruptcy protection. As the economic recovery took tentative hold last year, the number of filings grew increasingly uneven across the country.

Filings in Nevada remain at a level more than twice the national average. And rates in Georgia, California and Tennessee remain at more than 1.5 times the national average. Eight areas reported rates less than half the national average: Alaska, South Dakota, District of Columbia, South Carolina, Vermont, New York, Wyoming and North Dakota.

California is one of just four states where January filing rates were higher than last year. The others were Delaware, Idaho and Utah. Several state reported levels at least 30 percent below last year's, including Vermont, Connecticut, New York and D.C.

Continue reading "Bankruptcies in Modesto, Stockton, Continue to Increase Even as Numbers Fall Nationwide" »

A controversial California civil rights attorney has been disbarred and sentenced to prison for bankruptcy fraud, according to the California Bar Journal.

Stephen G. Yagman, made a name for himself suing the Los Angeles Police Department for a variety of offenses and the Federal Bureau of Investigation over its handling of Ruby Ridge. He was convicted of not paying more than $100,000 in federal taxes and of hiding assets when he filed for personal and corporate bankruptcy in 1999.

A proper accounting of assets and liabilities is critical when filing for bankruptcy and is one area in which a Modesto bankruptcy lawyer can provide valuable assistance. Failure to properly declare assets can result in significant legal issues. Conversely, failure to declare all liabilities is equally critical. Clients most frequently have problems on the liability side of the equation. Failure to declare a liability means it will not be discharged in a bankruptcy. And a client's inability to declare bankruptcy again for years after an action is discharged means they may be ineligible for additional relief. Whether filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Modesto, consulting an experienced attorney is the best course of action for protecting your current and future financial well-being.

In this case, Yarman was sentenced to three years in prison on charges of tax evasion and bankruptcy fraud. Investigators say he transferred his Venice Beach home into the name of his girlfriend and hid assets in her account before declaring bankruptcy. He is also accused of failing to pay more than $158,000 in tax liabilities, and of failing to pay federal payroll taxes at his law firm, Yagman & Yagman, P.C.

He is accused of concealing $776,000 in assets when he filed for corporate and personal bankruptcy in 1999. He claims he was singled out because of his years fighting with the federal government, which included a lawsuit challenging the detention of terror suspects at Guantanamo Bay.

Continue reading "Attorneys Case Illustrates Importance of Claiming Assets and Liabilities when Filing for Bankruptcy in Modesto" »