Orange County bankruptcy filings are on the rise!

Orange County statistics indicate things will get worse before they get better. Unemployment in California rose to an all time high of 12.6% while foreclosures in Orange County are up 55% from February alone. Additionally, individual and business bankruptcy filings are up almost 50% from a year earlier and 30% higher than in February. As many counties have struggled throughout California, the Orange Crush is here!

Source: U.S. Bankruptcy Court

Just in the first quarter, 4,292 cases were filed in the Santa Ana court of the federal Central District Court of California. That’s a whopping 46.8% more than a year earlier. Even though Orange County bankruptcy filings may not be increasing at the rate of Los Angeles, Riverside or San Bernardino counties Orange County bankruptcy attorneys are busier than ever says James Zhou, bankruptcy attorney with The Law Offices of Zhou & Chini who files bankruptcy in all four counties. “Many Orange County residents are facing foreclosure and have suffered with a significant loss of income and just can’t repay their debts”. Zhou goes on to say, “bankruptcy is not something to be ashamed of, for many it’s a smart choice and the first step to a fresh start”. The bottom line is Orange County has been hit hard just like most of California and bankruptcy filing will probably continue to increase just like foreclosures and unemployment.

Attorneys who specialize in bankruptcies will continue to be busy, said Ron Chini, partner at Zhou & Chini who personally interviews all his clients before filing for bankruptcy. “I focus on helping homeowners avoid foreclosure and eliminating debt while my partner takes on chapter 11 business bankruptcy reorganizations. While many Californians have tried workouts with their mortgage lenders, for the most part loan modifications are not coming quick enough and 2^nd lien holders are now going after borrowers who have defaulted mortgages. Additionally, credit card defaults are at an all time high and debt settlement companies are coming out of the wood work to prey on consumers. Bankruptcy attorneys who focus on eliminating unsecured debt such as credit cards or medical bills with chapter 7 are held to a much higher standard, and far better choice than a debt settlement company. As for Orange County business owners, the economic downturn was so severe that many companies were wiped out before they could even get to a bankruptcy attorney, Chini added. “Typically, we can help them through the troubled times, and they are able to survive and get their affairs back on track”. If you are considering bankruptcy to stop foreclosure, repossession, eliminate debt or a deficiency judgment from repossession a California bankruptcy attorney who handles these matters daily is your best option for bankruptcy information. Bankruptcy laws can be confusing; with the income level of many Orange County residents the means test will help determine if they can file chapter 7 or chapter 13. It’s important to work with a bankruptcy attorney who understands how to work the numbers to help you get the best results. “There are now bankruptcy mills opening up where the attorney is never even involved other than filing under his name” says Attorney James Zhou. This could have a devastating effect to the client if the bankruptcy petition is not filed properly.That why we meet confidentially with every client and personally do the bankruptcy filings. Making mistakes when it comes to filing bankruptcy can be very costly, and we don’t take any chances when it comes to our clients. For a free and confidential consultation with an experienced bankruptcy attorney call the Law Offices of Zhou & Chini today at (888) 483-2902 or visit them on line at www.BankruptcyAttorneyinCalifornia.com.