San Diego Bankruptcy Law Blog

As we have previously discussed on our San Diego bankruptcy law blog, perhaps one of the most complex and contentious bankruptcy filings we have seen within the last year has been that of the Los Angeles Dodgers.

After nearly one year from when the Chapter 11 bankruptcy was first filed by the Major League Baseball team's owner Frank McCourt, it appears that the team has finally exited bankruptcy. Last week, it was reported that the official sale of the team was completed. This was the last step that needed to be taken, according to a reorganization plan that had been approved by a judge last month, before the bankruptcy could be finalized.

Although the team's creditors initially attempted to object to the sale of the Dodgers, which would have further prolonged the bankruptcy process, the bankruptcy judge did approve the final sale amount. The team was sold to Guggenheim Baseball and several other owners for more than $2 billion. After the sale was announced, the team said that they will "move forward with confidence -- in a strong financial position, as a premier Major League Baseball franchise."

As we mentioned last week on our San Diego bankruptcy law blog, Chapter 7 and Chapter 13 filings are reported to all three credit bureaus. This automatically affects one's credit score and credit history, but consumers can take certain steps to repair credit so that they can have access to loans, credit cards and other financial instruments in the future, even after bankruptcy.

A simple solution to repair one's credit is to make payments on loans, credit cards, mortgages and other bills on time every single month. Typically, lenders will not report late payments to the three credit bureaus unless the payments are 30 days late. But missed payments can result in late fees and it can also put consumers in the same situation they were in prior to bankruptcy. For those who simply forget about payment due dates, putting reminders on calendars may be helpful to prevent making a late payment or missing a payment entirely.

If your budget has been tight over the last few months, an easy solution to your financial problems might be to consider refinancing your car loan or modifying your home mortgage in order to lower your monthly payments.

A loan modification in San Diego not only frees up a little extra income for any unexpected expenses, but this type of debt negotiation plan can also help individuals find financial stability before needing to explore other options such as Chapter 7 or Chapter 13 bankruptcy protection. However, before San Diego residents make loan modification and debt negotiation agreements with lenders and other companies, consumers may want to consider seeking assistance from an attorney in order to make sure that these agreements are sound and that any new loan or mortgage terms will do more good than financial harm.

Some companies may take advantage of a consumer's need to lower his or her monthly payments through loan modification scams. Just this month, a lawsuit was filed against a San Diego company that had said it would help consumers lower their monthly auto loan payments.

Filing for personal bankruptcy protection in San Diego is certainly one way consumers can discharge or restructure their unmanageable debt. But when finances are already tight, how does one pay for a Chapter 7 or Chapter 13 bankruptcy filing in California?

According to a study conducted by the National Bureau of Economic Research, at least 200,000 U.S. households will be taking their tax refunds to a bankruptcy attorney so that they can file for Chapter 7 or Chapter 13 bankruptcy protection this year.

Many consumers may understand that bankruptcy is the best solution for their situation, but the costs of bankruptcy filings and legal fees may cause some Americans to put off seeking personal bankruptcy protection until they have enough money to proceed with the legal process. With a big tax refund, or after saving some extra cash, San Diego residents may finally have the funds to seek bankruptcy protection.