A company owned by Grey’s Anatomy star, Patrick Dempsey, aka Dr. McDreamy, won a bankruptcy auction to purchase Tully’s Coffee, a Seattle-based coffee chain.  The chain filed for Chapter 11 bankruptcy in October 2012.  Dempsey pushed for the purchase of the company in order to keep an alternative to Starbucks and also to save over 500 jobs.  There were a total of six companies bidding for ownership of Tully’s, including Starbucks Corp.  Starbucks offered to buy Tully’s for $10.6 million.  This bid was higher than Dempsey’s winning bid of 9.15 million.  

Based on the fact that Dempsey’s lower bid was the winner, Starbucks and others are now pushing US Bankruptcy Judge, Karen Overstreet, to reject Dempsey’s bid.  The companies claim that the actor unfairly charmed auctioneers to win without offering the highest bid (well, he is pretty dreamy).  If Starbucks is successful in challenging Dempsey’s bid, it plans to convert Tully’s locations into Starbucks coffeehouses and add more than 700 locations throughout Washington.

According to Tully’s executive, Scott Pearson, this may be a key reason why Dempsey’s bid was the winning one.  Despite his good looks, Dempsey’s offer may have won because of a conflict between Starbucks and Tully’s chief supplier, Green Mountain Coffee Roasters.  Starbucks would not sell any Green Mountain coffee in its converted stores.  Therefore, Green Mountain threatened to exercise its power to delay the bankruptcy sale if Starbucks was the successful bidder.

The winning bid is not finalized
yet, but should be finalized later this month.

***Update…McDreamy wins!  Judge Karen Overstreet ruled today, after a four hour bankruptcy hearing, that there was no fraud present in the bidding process.  Dempsey is the successful bidder.

For more information about Perez Law Group can be found on our website, http://www.perezlawgroup.com.  For a free consultation, call 602-252-9937, or email info@perezlawgroup.com.

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Here are ten important questions that you should ask a bankruptcy attorney at your initial consultation (yes, just ten.  Although, I am sure I could come up with a full 21):

1. What are your fees?  Ok, please don’t take these to be in order of most important.  I know this is always on a bankruptcy client’s mind.  After all, you are considering filing bankruptcy because of a tough financial situation.  However, I do not believe this should be your deciding factor in determining whether or not you file for bankruptcy.  Most attorneys will offer reasonable fees and payment plans to assist you.  As long as you are not under an emergency situation, such as a imminent foreclosure or garnishment, you can generally take time to pay your bankruptcy fees.  Additionally, the statement, “you get what you pay for,”  usually applies in the context of bankruptcy fees.  Remember that this is a legal process.  If you wouldn’t pay discount fees for your divorce or estate planning attorney, why would you pay that for your bankruptcy attorney?  Often paying less means that you are not getting personal service or carefulness in the case.

2. How will this affect my credit, or what are the impacts of filing for bankruptcy?  This is an important question because you want to weigh your debt management options.  Bankruptcy will have an impact on your credit and your ability to obtain future loans.  If you have debt that you may be able to manage in other ways with a lesser credit impact, bankruptcy may not be the decision for you.  On the flip side, if your credit is already hit with late payments, judgments, etc…, the impact of a bankruptcy may not be as important.

3. How much work does the attorney do on my case?  In an era of a bankruptcy boom, many law firms have decided to tackle a bankruptcy practice.  Because an individual bankruptcy is more administrative (i.e. a lot of paperwork), some firms shuffle that work to paralegals.  The attorneys may meet with a client initially and go with them to their Meeting of Creditors.  The rest is done by a paralegal.  While I know that attorneys get busy, you are paying hard-earned money for legal services, and you deserve to have an attorney handle your case.  Also, your attorney will be representing you at court, and he/she should have a firm and first-hand understanding of your case.

4. Is there anything I shouldn’t do as I prepare for my case to be filed? I have had a few people ask me this question, and I really like it.  It helps me remember that, as an attorney, not everyone knows the bankruptcy process like I do.  So, some rules that are second nature to me are not necessarily known by my clients.  Getting these out up front (such as no repayments of loans to family members) helps to prevent problems, or issue, in the future.

5. Can you explain both chapters of personal bankruptcy to me? If I know that someone has the income to qualify for a Chapter 7 bankruptcy, a lot of times that is where the focus of my explanation tends to go. However, there may be reasons why a potential client would want to file Chapter 13 bankruptcy.  I will find this out and explain Chapter 13 as well.  If you find that the attorney your speaking to is only talking about one chapter of bankruptcy, make sure you ask him/her to explain both.  You have the right to choose either chapter, and you should know and understand what each entails.

6. When will my case be filed?  If you are facing a garnishment or foreclosure, you need to know the timeline for having your case filed.  Therefore, you should ask the attorney’s policy on at what balance he/she will start to prepare your bankruptcy petition and if fees must be paid in full to file the case.  You also want to know the attorney’s typical turnaround time on getting a case filed once a fee is paid and all documents are provided.

7. What is the typical process of filing for bankruptcy from beginning to end?  You need to have accurate expectations of what happens in a typical bankruptcy.  For example, you should know how many times you will have to go to court, or what the role of the trustee is in a bankruptcy case.  Also, you want to know when you should expect to receive your bankruptcy discharge.  This is the time when your credit can start to rebuild.

8.  How much legal experience do you have?  Just like fees, this is one of those questions that is important, but maybe shouldn’t be given unequal weight.  A better question might be, “how much bankruptcy experience do you have?”  The reason is that bankruptcy is its own little world.  It has its own code of laws and rules of procedure.  A lot of attorneys who have had years of experience practicing in other areas of law find it hard to dabble in bankruptcy, or begin a bankruptcy practice.  You want to find an attorney who has filed many successful bankruptcy cases and has experience with a wide variety of circumstances.  This person should also be familiar with the current bankruptcy laws.

9. What can I do to help my credit once  I file for bankruptcy? Everyone wants to get their credit back up almost immediately after filing.  This is understandable, but you want to do it in the right way.  Trying to apply for too much credit can actually hurt you more than it can help you.  Ask the attorney the safe and best ways to rebuild credit post-bankruptcy, such as applying for a secured credit card.

10. I am joint on my car, house, bank account, credit card, etc.. with my parent, sister, child, etc.. Is that a problem? It is typical to go over assets in a bankruptcy consultation because there is the possibility that some assets might be liquidated by the bankruptcy trustee.  I always find that people forget those assets that are not entirely theirs, like the joint bank account, or vehicle.  However, this is so important to mention because it can have an impact on your case and your family member or friend.  So, if you know you have this situation, remember to ask the attorney if this would be an issue in your case and how you might be able to plan for any complications.

As I said, this is just a starting point.  There are many other questions that could, and should be asked, during an initial consultation.  However, I think these ten are a good start and will get the conversation flowing.

For more information about Perez Law Group can be found on our website, http://www.perezlawgroup.com.  For a free consultation, call 602-252-9937, or email info@perezlawgroup.com

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The new bill puts a total ban on Americans adopting Russian children and is believed to be the response of growing tension between the two countries.  The adoption legislation follows the heels of a highly controversial law signed by President Obama last month.  The US law is in honor of Sergei Magnitsky, a lawyer who uncovered political corruption among several Russian tax officials.  Magnitsky was arrested and detained.  While in detention, he died.  It is strongly believed that his death was the result of the actions of prison officials.  The United States’ bill imposes a ban on the entrance into the US by several of the Russian officials involved in the Magnitsky case and prohibits them from using the US banking system.  Russia touts its adoption ban as its own human rights’ measure because the bill is named after a Russian child who was adopted by Americans and died in 2008 from neglect. What is the real effect of this new legislation?  Well, it certainly won’t stop Americans from participating in international adoptions all together, but it will have an impact.  Americans have adopted over 60,000 Russian children in the last 20 years.  American adoptions from Russia are third in line after those from China and Ethiopia.  This ban will definitely have an impact on Russian children.  The US State Department also reports that it will most likely jeopardize the pending adoptions of 46 children.  While, the adoptive parents of those children could certainly go elsewhere to adopt a child, many of them have already met and interacted with those children and created a bond.  Adoption is a happy time, but it can also be tense because of the many unknowns involved.  This could be a hard blow for these families who thought that the realization of their dream of having a child was near.

While Russia’s legislation has rocked the adoption community, it is not uncommon for countries to impose restrictions on the adoption of its children.  Many countries have specific requirements for inter-country adoptions.  The list of requirements can be viewed on the US State Department’s website.

For more information about Perez Law Group can be found on our website, http://www.perezlawgroup.com.  For a free consultation, call 602-252-9937, or email info@perezlawgroup.com

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Domestic violence affects one in four Arizona residents.  A victim is beaten every 9 seconds.  A domestic violence related death occurs every four days in Arizona. Nearly 10 million children will witness domestic violence annually.  These are staggering and frightening facts.  When we envision a “typical” domestic violence situation, we tend to think of a woman who is physically abused by her husband.  However, can present itself domestic violence in many forms.  It can include not just physical abuse, but also verbal, emotional, and sexual abuse.  Domestic violence can occur between individuals in all different types of relationships.  For example, Arizona law states that domestic violence can occur between parents and children, siblings, and those involved in non-marital romantic relationships.  What particularly affected me to hear at this luncheon is that many teens are involved in forms of teen dating domestic violence.  In fact Eve’s Place stated that their teen outreach programs and counseling services are often some of the most utilized services that they offer.  This is a serious issue because this type of violence, in my opinion, is a cycle.  You become what you know, or accept that there is nothing different, or better, than what you know.  It is so important to help this teens so that the a cycle of abuse can be prevented.  Another surprising fact presented is that victims of domestic violence are not always women.  While it is more prevalent for women to be the victims of domestic violence, men are also affected by this crime.

So, what can the average person do to help change the outcome for the men and women who experience domestic violence?  I say, “VOLUNTEER, VOLUNTEER, VOLUNTEER!”  Eve’s Place is a great organization to get involved with (although there are many out there), and a non-profit organization, such as Eve’s Place, cannot thrive and grow without volunteers.  Eve’s Place offers many services to its clients, not just shelter.  In addition to emergency housing, Eve’s Place also offers access to support groups and ongoing counseling.  They have also just moved their shelter facilities to an apartment complex, so that they can offer transitional housing for their clients.  Eve’s Place also emphasizes life skills training and works with the community to locate jobs for the these victims.  Thus, helping victims break free of any economic dependence that they may have on their abusers.  One of the other special things about Eve’s Place is that it offers services to both men and women.  It is one of the few shelter organizations that will do this.  This important because male victims of domestic violence need just as much support as female victims.  If you wish to learn more about this organization please check out their website at http://www.safetyatevesplace.org/ or Facebook page at http://www.facebook.com/#!/pages/Eves-Place/163364277014297?fref=ts.  And, as you go out and finish your Friday, please remember “the color purple.”

For more information about Perez Law Group can be found on our website, http://www.perezlawgroup.com.  For a free consultation, call 602-252-9937, or email info@perezlawgroup.com

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First of all, I do not believe that filing for bankruptcy should be viewed as shameful or embarrassing.  Now, I know that I am a bankruptcy attorney and that people will think this is a biased opinion.  But, I really do believe this.  We all experience tough times and sometimes it is harder to pull ourselves out of those tough times than usual.  We need help, and there is nothing wrong with needing help. 

Second, there is no branding involved in filing for bankruptcy.  You will not have to display your bankruptcy filing to the world.  Bankruptcy is a public proceeding. This means that anyone could view your bankruptcy paperwork, or petition, and learn about your case.  It also means that the 341 Hearing (the one court appearance that you will have) will generally be an open proceeding with other bankruptcy filers, and their attorneys, present.  However, the whole world will not know that you have filed bankruptcy.  To my knowledge, the State of Arizona does not publish notice of individual bankruptcy filings in any public forum.  There are publications of business bankruptcies in the newspapers.  In order to access online case information, you must have an account with the US Bankruptcy Court.  This not something that a simple curious bystander is probably going to obtain.  Attorneys are only required to directly notify creditors and co-debtors of a bankruptcy filing.  Your employer will not get direct notification unless you have an ongoing garnishment.  In this case the employer must be contacted with the case information to stop the garnishment.  Besides these instances, there should be no one else who would know of your filing, unless you tell them.  So, despite being a matter of “public record,”  it is not foreseeable that many people will ever know that you filed for bankruptcy.  Therefore, if you must look to bankruptcy to help you with your debt relief, there is nothing to fear and nothing to be ashamed of.

For more information about Perez Law Group can be found on our website, http://www.perezlawgroup.com.  For a free consultation, call 602-252-9937, or email info@perezlawgroup.com

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