Month: July 2020

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California Resources Files for Bankruptcy Protection

California’s Largest Oil Driller Files for Chapter 11 Bankruptcy

California Resources, the largest oil driller in the state, has filed for bankruptcy protection, the company said a press release.

The company said it had filed for chapter 11 bankruptcy, aiming to reduce its debt burden by about $5 billion. The company became the latest casualty of oil price crash caused by the coronavirus pandemic, which wiped out the demand for oil.

California Resources said the planned restructuring would “enable the company to operate safely through the current downturn in oil prices and establish a solid financial foundation to enhance future value creation.”

More than 18 oil and gas companies in the nation filed for bankruptcy during the second quarter of 2020. According to data from Haynes and Boone, as many as 41 companies in the energy industry have filed for bankruptcy protection this year.

The drop in the demand for oil and unsustainable debt levels has caused a number of companies in the industries to default on their bonds. The banking industry has also cut credit lines to the troubled industry.

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How to Choose a Bankruptcy Lawyer in California

How to Choose the Right Bankruptcy Attorney

If you are planning to file for bankruptcy, there are several factors you should consider when choosing a bankruptcy attorney. The most important thing is going to be whether you feel comfortable with that attorney handling your case.

One of the questions you want to ask is whether the attorney prepares the work themselves or whether they’re going to be delegating that to a paralegal.

Secondly, you should find out if the attorney is going to be available to answer your questions when you need it and what the turnaround time on that will be.

You may also want to check their reviews online to see how other clients have interacted with that attorney and ensure that it’s a good fit for you. You can also interview them over the phone or at the office to make sure they are a good fit, and that you’re feeling comfortable with them.

It is advisable to go with an attorney who has an office in your state rather than going with a national law firm. This is because if you hire an out of state attorney, you may not know if they are up to speed on all the state laws in your area, and the local customs.

Hiring a local, a local attorney increases the likelihood that they’re available to you and you’re not just dealing with a paralegal in some national law firm.

Mark Shayani of Pacific Attorney Group is always available to help you in your bankruptcy case. Schedule a free initial consultation today.

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How to Stop the Repossession of Your Car

How to Avoid Car Repossession

A repossession can happen without warning, as long as the car is in a public place, on the street, or even in the driveway of a private home.

When the repossession occurs, it’s still possible to file for bankruptcy and get the vehicle back. However, the date that you have to beat is the auction date for the vehicle. Unfortunately, you may not know the day of the auction and so it’s advisable to ensure that you file for bankruptcy before the car is repossessed.

If you want to save the vehicle, you should file a chapter 13 bankruptcy. If you file a chapter 13 bankruptcy, you can force a creditor to take payments for the vehicle over the course of three to five years.

Upon filing a chapter 13 bankruptcy, you won’t make a car payment anymore, but you’ll make all of your payments through the appointed chapter 13 trustee.

When you file a bankruptcy, the automatic stay goes into effect and that’s a very powerful law that, among other things, means that your car can’t be repossessed anymore.

If you have questions on how to stop a repossession using a bankruptcy, reach out to Mark Shayani of Pacific Attorney Group and ask for a free consultation.

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The 3 Biggest Bankruptcy Fears and Myths

The thing that people fear the most is that everyone will know they have filed for bankruptcy. The truth is that unless you’re a prominent person or a major corporation and the filing is picked up by the media, the chances are very high that the only people who will know about the filing are the creditors and the close friends. While it’s true that bankruptcy is a matter of public record, the number of filings is so massive that unless someone is specifically trying to track down information on someone, there is almost no likelihood that anyone will even know someone filed.

Another thing that people fear is that they will lose everything they have. The truth is that most people who file for bankruptcy don’t lose anything except the financial misery caused by their debts. While bankruptcy laws vary from state to state, every state has exemptions that protect certain kinds of property. In some states have exemptions to protect property such as house, car, household goods, IRAs, retirement plans, the cash value in life insurance, wages and personal injury claims.

In rare situations where one has more property than can be protected by available exemptions, one can file chapter 13 bankruptcy since it can even keep this property by paying a higher chapter 13 plan payment. If one wants to keep the property that serves as collateral for a loan, all they have to do is ensure they remain current on loan payments and have enough exemptions to cover any value above what is owed.

People who are thinking of filing for bankruptcy also fear that they might never get credit again. The contrary is true. Filing for bankruptcy gets rid of debt and puts the debtor in a position to handle more credit, making them look more attractive to potential creditors. One should be aware that the first potential creditors will want more money down and will want to charge higher interest rates. However, by making good financial decisions, one will put good marks on their credit report and improve the quality of their credit.

If you need answers to your specific situation, contact Mark Shayani of Pacific Attorney Group for a free, private and confidential consultation.

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Disputing Credit Report Errors

How to Dispute a Credit Report Error

It’s essential to check in on your credit every once in a while to know where you stand. This can be done by requesting annual credit reports.

When you get your credit report, you may want to watch out for any credit report errors to find and dispute errors on your credit report.

You’ll need to first obtain a copy of it from annualcreditreport.com. Everyone is entitled to a free copy of the report each year from each of the three major credit bureaus i.e., TransUnion, Equifax and Experian.

If you find an error, you’ll need to write a letter to the bureau telling them what information is inaccurate. It is advisable that you don’t use the bureau’s online form because it limits how much proof you can attach and may require you to sign away some of your rights.

Your correspondence should include copies of documents that prove your claim, a clear identification of the error, and a brief description of the facts. You can then request for the deletion or correction of the errors.

It is a good idea to keep a copy of the letter if you’re mailing it and keep the receipt once your letter is received.

The bureaus will investigate the item in question, usually within 30 days, after which they notify the party holding the error. This can be a bank or a lender.

When an error is discovered, all credit bureaus are notified so that the report can be updated. If your reports have been changed, you’ll get another free copy of it. You can also request the bureaus to send correction notices to anyone who has pulled your report in the past six months.

Contact Mr. Mark Shayani of Pacific Attorney Group for credit and debt counseling. Mark is a professional and compassionate financial expert who will help you ease your financial stress and develop a plan for living a financially healthy life.