Indiana Lawyer for Bankruptcy’s Lessons From the News – Part #1

July 8, 2012 2:40 pm Published by

Goodness knows, we don’t suffer from a lack of news these days.  What with radio, TV, newspapers, magazines, and now Twitter, Facebook, and blogs, it should be easy for everyone to stay abreast of what’s happening.

Problem is, there’s too much news, and it’s often overwhelming.  Many Bankruptcy in Indiana readers and many clients of the Zuckerberg bankruptcy law offices tell me they have a hard time making sense of it all.

This week, I’m going to try and help, at least regarding news that relates to my work as a debt consolidation lawyer and Indiana bankruptcy attorney.

The biggest piece of news comes to us out of California, where the largest municipal bankruptcy in U.S. history was filed last month.  According to Reuters, “Stockton may be a new breed of failing city.” Why? In Reuters’ view, Stockton, California, unlike other cities that filed bankruptcy, did not make bad investments or start ill-conceived public works projects. Instead, the city became swamped by routine costs, the general economic slide, and a depressed housing market.

I asked all the good Indiana bankruptcy attorneys who are my colleagues what one lesson they each thought my Bankruptcy in Indiana readers could take away from the news about the Stockton bankruptcy. Here are some of their answers:

From one of our Richmond, Indiana bankruptcy lawyers:

Stockton mayor Ann Johnston pronounced that the city had to file bankruptcy “to gain relief and continue providing services.”  That’s precisely the reason anybody files personal bankruptcy in Indiana.  The burden of debt has become so great for some individuals, they just have to seek legal relief to be able to carry on with their lives.


From one of our Indianapolis bankruptcy attorneys:

According to a CBS report, the court document filed by Stockton in bankruptcy court is 211 pages long, “listing every single person or company to whom the city of Stockton owes cash.”
While my colleague and I agreed that not a single one of the tens of thousands of small business bankruptcy cases or individual Indiana bankruptcy cases our firm has handled had 211 page documents, it’s still true that a very, very important step in the bankruptcy process is gathering information and filling out the paperwork.

 From one of our Columbus bankruptcy lawyers:

In California, the law says a city must go through mediation before filing bankruptcy.  And, even though the mediation didn’t prevent the bankruptcy, it forced the debtor (Stockton) and the creditors to talk to each other ahead of time.  That put the city in a better position going into court.

This attorney encourages clients to come into our Zuckerberg bankruptcy law offices long before they’ve reached the point at which bankruptcy is their only alternative.  “We do everything possible to help debtors talk to their creditors, try to negotiate mortgage modifications for them, and even help them talk to their credit card companies and medical collection agencies to attempt to reach compromises.

“Bankruptcy is no easy road for municipalities,” admits Reuters, “but Stockton is incredibly well-prepared.  At the Zuckerberg Bankruptcy law offices, we want every person, even if they cannot stave off bankruptcy in Indiana, to be incredibly well prepared to make a fresh financial start!




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This post was written by Mark Zuckerberg

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