Riverside-San Bernardino, CA Bankruptcy Blog

The City of Rialto, California, is a convenient location for people to call home. The area has long history of expansion, attracting many businesses to build and operate facilities in the region. While it may seem normal and quiet just like any other town, there is a reason for residents to be concerned. Rialto residents have been experiencing a number of serious health problems, leading to an extensive investigation by state officials.

Their investigation has uncovered some alarming facts. Two of the city's water wells were found to be contaminated with perchlorate and trichloroethylene (TCE). Perchlorate is used to make rocket fuel and fireworks, and TCE is a commonly-used industrial solvent which has been linked to cancer.

As the economy struggles to rebound, many people have been out of work for a very long time. It can be tough to stand out from the rest of the crowd when there are hundreds of applicants for one job. Finding something in a specific area of expertise may be impossible, which can result in a person deciding to go back to school.

Several for-profit colleges realize there are many frustrated people out there looking to start over. Since they have been out of work for a long time, they may not have the funding they need to sign up for classes. No matter - the schools promise them very lucrative careers once they graduate. All they need to do is take out a few loans to pay for their education, and then it is time to start making money.

In a tough economy, it can be difficult to find work. Many people who have been out of work for long periods of time decide to switch careers, hoping that the change will allow them to find a job more quickly. Some of these jobs will have minimum educational requirements before an applicant will be considered.

Television and newspapers are filled with ads from career colleges, promising a wealth of opportunities if you attend their institutions. Space is almost always limited, and many schools pledge that you will find work after you get your degree. Financial aid is available to those who qualify, so what do you really have to lose by waiting to take advantage of this wonderful opportunity in your new career as a surgical technician, medical billing specialist or other profession?

Here comes April 15: tax time. If you've procrastinated, like many of us do when it comes to taxes, then you've got your work cut out for you. If you're an accountant, whether your clients have procrastinated or not, you also have your work cut out for you - April 15 is a busy time of year no matter what.

And if you've been a client of Sobti Law Group, you know first-hand the benefits of filing for bankruptcy. What you may not have been anticipating was Form 1099C, which is a document from a bank or other former creditor ("former" because you no longer owe the creditor any debt after bankruptcy) that, in effect, implies that you owe more on your taxes because you "gained" in income by being forgiven your debt.

Do Not Worry About the Trustee

If you're worried about the trustee, don't be. She won't make a pauper of you, force you out on the street, take everything you own and hand it over to your creditors. That's not what bankruptcy is. It's also not the Spanish Inquisition, the trustee peering down at you from on high.

In a conference room (generally not a courtroom) the bankruptcy trustee will ask you questions that are meant to clarify her understanding of your financial situation, based on the documents your bankruptcy attorney filed on your behalf. The typical hearing is 15 minutes or less. And your attorney will be by your side the entire time.

We've previously written about the Florida Attorney General's investigation into massive foreclosure fraud, as well as the nearly-unstoppable GMAC Mortgage foreclosure machine. Both of these stories, in one way or another, involve people like David Stern, who ran one of the nation's largest home foreclosure firms representing giant banks. The firm had revenue upwards of $260 million at the height of its powers in 2009, according to a report by ABC News.

It's a "Foreclosure Machine," says Attorney

Imagine making monthly mortgage payments and never missing a payment - not one, and never late - yet home foreclosure is nonetheless attempted by various mortgage lenders on three separate occasions.

That's what happened to Ohio couple Michael and Pamella Negrea.

The Negreas' mortgage took quite a journey, as have many other homeowners' mortgages, starting in 1998 after the Negreas refinanced their home. The mortgage was sold to Advanta Mortgage, then Nation's Credit, then Homecomings Financial.

Fairbanks Capital serviced the loan as it made its way through the now-notorious buying and selling process. Fairbanks went on to earn its share of infamy with foreclosure fraud when in 2003 the Federal Trade Commission and U.S. Department of Housing and Urban Development settled a lawsuit that charged Fairbanks with unfair and illegal practices.

"Being debt-free is the new rich!" says accountant Sweany Salt, as quoted in a recent USA Today article. Salt regards retirees' debt problems as simple math: costs go up, income goes down.

As former California governor Jerry Brown takes office for the second time, he faces a state that is in rough financial shape - along with millions of its residents, many of whom are retired and wondering what to do about mounting credit card debt and harassing debt collectors.