Last year, California-based clothing retailer Pacific Sunwear, better known by its shortened name PacSun, drastically reduced its debt from $88 million to just $30 million by giving stock to senior lender Golden Gate Capital as part of a Chapter 11 reorganization plan: a debt reduction of $58 million.

The Bankruptcy Code puts specific demands upon the debtor seeking to eliminate debt through a bankruptcy filing. It is important for clients to realize that these demands are inherent in the bankruptcy code and are not needless demands from their bankruptcy attorney. In many cases, debtors will wrongfully assume that the demand is coming from+ Read More

In February, the FBI reported pastor Karl Robinson was sentenced to four years in federal prison for his role in a mortgage rescue scam that falsely promised California homeowners they could stop foreclosure and stay in their houses by paying fees for “experienced consultants.” Unfortunately for the victims of Robinson’s scam, his financial promises were too good to be true, and their money was wasted on useless, fraudulent services. However, there is a way to stop foreclosure that doesn’t involve empty promises or criminal activity: filing for Chapter 13 bankruptcy in California.

One of the oddities of Wynn at Law, LLC’s flow of phone calls is this:  A potential client will call within seconds of getting a $180 speeding ticket, but will wait to call until well into buying a $300,000 home. The stakes are so much higher in the latter, and in fact, a real estate attorney on the front end can end up saving you money. Here are four ways how:

Last month, a California-based adoption agency closed its doors after filing for Chapter 7 bankruptcy. Unfortunately for nearly 2,000 hopeful adoptive parents – many of whom had already sunk tens of thousands of dollars into the adoption process – the agency arguably failed to prepare its clients, instead surprising families with last-minute email notifications. Whether it is a corporation, an LLC, or other type of business entity, every company should take steps to avoid this situation by preparing for Chapter 7 and subsequent closure well in advance of filing.

Last month, Medill Reports Chicago covered a surprising source of bankruptcies in Illinois: expensive parking tickets. The report is a good reminder that while medical debt, credit card debt, and mortgage debt are common, the financial factors that can lead to bankruptcy are sometimes less obvious. Our Roseville bankruptcy lawyers explore some lesser-known sources of debt and spending in California.

In December, an Irvine-based bankruptcy attorney was disbarred after being convicted of conspiracy to commit bankruptcy fraud. The disbarment makes it clear that actual or attempted bankruptcy fraud can result in dire consequences – but you don’t have to be a lawyer to receive harsh penalties. If the trustee suspects that a filer has committed or tried to commit bankruptcy fraud in a Chapter 7 or Chapter 13 case in California, not only can there be negative ramifications for the bankruptcy, but the filer can even be criminally prosecuted.

Most of Wynn at Law, LLC’s bankruptcy clients face sudden situations that have them considering filing Chapter 7 or Chapter 13 bankruptcy. We’re talking about things like massive medical bills or sudden job loss. Finances can be a difficult balancing act at other times as well, so we put together a quick list of warning signs.

Thanks to an error in the postal system, the late filing of a bankruptcy-related complaint was permitted under a March 3 ruling by a California district court. That decision proved unfortunate for Chapter 7 filer Michael A. Turchin, as the complaint, filed by creditor Steven Berkowitz, would make a $624,000 debt owed to Berkowitz non-dischargeable. This case brings up an important question for debtors in California: can creditors dispute which debts are dischargeable? And if so, what are some common reasons a creditor might object to a discharge?

We are pleased to announce that we've moved to a new location near Grand Central Terminal.  Our new address is: Shenwick & Associates, 122 East 42nd Street, Suite 620, New York, NY 10168.  Please update your records accordingly.

Our phones and e-mail addresses remain the same.  We look forward to continuing to serve you from our new location!