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San Diego Bankruptcy Law Blog

Small San Diego music locker company seeks bankruptcy protection

After spending the last four and a half years in a legal battle against EMI Music and facing growing competition from other companies such as Apple, Amazon and Google, the founder of MP3tunes, which is a music locker service, announced that the company is filing for Chapter 7 bankruptcy protection.

MP3tunes, which is based in San Diego, was founded 7 years ago. The company had a successful year during 2011 with revenue totaling about $1 million. The service allows customers to store their music online for a monthly fee. About 300,000 customers have used MP3tunes so that they can access their music from any device that can be connected to the Internet.

However, the company's founder said that the small business has been plagued by a copyright lawsuit that was initially filed in 2007 by EMI Music. Because the lawsuit has yet to be settled, the company's legal fees have spiraled out of control and the founder sees no other solution than to file for bankruptcy protection.

Octomom's California house to be sold in foreclosure auction

Last week on our San Diego bankruptcy law blog, we discussed Nadya Suleman's decision to file for Chapter 7 bankruptcy protection in California. Suleman, who was dubbed "Octomom" in 2009 after giving birth to octuplets, is a single mother who has been struggling to financially support her fourteen children for several years now.

According to last week's bankruptcy filing, it was reported that Suleman's assets are estimated to be worth $50,000. However, her liabilities total nearly $1 million. While Suleman currently lives in a four-bedroom, three-bathroom home with her 14 children in La Habra, The Orange County Register reported this week that the home is scheduled to be sold at a foreclosure auction on May 21.

Typically, the foreclosure process will come to a halt when individuals file for bankruptcy protection in the state of California. But because Suleman does not own the home she has been living in for the past several years, the foreclosure process can proceed.

Bankruptcy finalized after completed sale of Los Angeles Dodgers

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."

'Octomom' files Chapter 7 bankruptcy protection in California

After facing the possibility of losing her home and surmounting bills for schooling and other expenses, Nadya Suleman, who is famously known as the "Octomom," filed Chapter 7 bankruptcy earlier this week in California.

Suleman is a single mother of 14 children. She was dubbed Octomom in January 2009 when she gave birth to eight children who were conceived through in vitro fertilization. Raising 14 children on her own has left little opportunity for full-time employment, but Suleman claims to have sought other business opportunities over the last couple of years to earn some extra cash for her family. Some of those business opportunities included a book, exercise videos and posing for photo shoots for the media. However, the book and video deals never went through and Suleman has been struggling financially to make ends meet for her family.

Repairing your credit after bankruptcy in San Diego, part two

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.

Repairing your credit after bankruptcy in San Diego, part one

As we have mentioned before on our San Diego bankruptcy law blog, completing a Chapter 7 or Chapter 13 bankruptcy is a great solution for many consumers who are in need of a fresh start with their finances. Challenging economic times, unexpected expenses and underwater mortgages may put a strain on any family's budget and contribute to burdensome debt that may seem impossible to repay.

Although bankruptcy protection is certainly a step in the right direction to resolve one's financial troubles, consumers must also understand that it may take some time for one's credit to recover after a bankruptcy filing. Bankruptcy filings are reported to all three credit bureaus, which automatically reduces one's credit score. However, there are certain steps consumers can take after bankruptcy to repair credit and to enjoy a fresh start.

San Diego company accused of debt negotiation scam

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.

California residents could inherit debt from the deceased

Money, property and other riches are not the only things that can be passed on at the time of a person's death. Debt could also be tied into an estate inherited by a loved one. This is why it is important to learn how certain financial situations are handled in the state of California when a loved one dies. There are some scenarios when San Diego residents could be on the hook for paying someone else's debt.

Typically, debt, such as home mortgages, car loans, student loans and medical bills, are cancelled after a borrower's death. Still, officials who handle such cases will look at how certain assets are titled or how certain loans were dispersed in order to determine if someone else should pick up the tab for one's debt.

For instance, if a husband and wife take out a loan together and one spouse passes away, the surviving spouse would be responsible for paying the debt off. The same would apply to joint credit card accounts, even if only one spouse used the credit card and racked up debt. The surviving spouse would still be accountable for paying that debt.

Will San Diego residents use tax refunds to file for bankruptcy?

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.

Former NFL player Warren Sapp files Chapter 7 bankruptcy

As we have discussed before on our San Diego bankruptcy law blog, even those who have not been affected by the economic downturn could still be at risk of facing serious financial problems if they do not manage their money well. The sudden loss of a job, a divorce or an injury could be costly. Without an emergency savings account to cover unexpected expenses, any San Diego resident could suddenly become overwhelmed by his or her debt.

After earning millions from playing in the National Football League and working on several other projects after his professional football career ended, it was reported over the weekend that Warren Sapp filed for Chapter 7 bankruptcy. According to the bankruptcy filing, the former NFL star does not earn enough to cover his current monthly expenses. As a result, his debt has been building up and is currently estimated at nearly $7 million. The bankruptcy filing listed Sapp's assets at less than $6.5 million.