San Francisco Bankruptcy Law Blog

A landmark settlement was reached today between the federal government, attorneys general from California and 48 other states, and the nation's five largest mortgage servicers. The $25 billion settlement is meant to hold the servicers accountable for foreclosure abuses as well as aid up to 2 million homeowners who have been affected by the housing market's collapse.

Foreclosures were slowed in 2011 while the lenders negotiated for more than a year with the attorneys general over accusations of shoddy paperwork and other fraudulent activities that have been used to repossess homes.

The sports agent who was the inspiration for the film "Jerry Maguire" filed for Chapter 7 bankruptcy protection earlier this month in Santa Ana, California. The man's debt reportedly amounts to several million dollars.

The man, Leigh Steinberg, has represented NFL players including Troy Aikman, Warren Moon and Ben Roethlisberger. He has said he delayed filing for bankruptcy protection for several years, because he had borrowed money in good faith and wanted to pay it back. However, facing creditor harassment and negative publicity, he finally decided to file.

Medical debt affects people from all walks of life, including the employed and unemployed, the insured and uninsured, and the young and old. Even those eligible for Medicare face medical debt. In California, where the joblessness and foreclosure rates are significantly higher than the rest of the country, medical debt is a very serious issue.

A number of factors contribute to medical debt, including the rising health care costs, a slowing economy and shrinking workforce. Since 2003, health care costs have risen faster than the U.S. economy as a whole.

Many southern California residents have visited and enjoyed Tia Juana's Long Bar & Grill in Irvine. Earlier this month, the historic restaurant closed its doors for the last time after filing for bankruptcy liquidation. Tia Juana's had been operating in this location since 1988 and is rumored to have been located in one of the oldest buildings in the area.

The owner of the iconic bar and grill said that a poor economy and a dispute with the landlord led to the filing for bankruptcy. According to the owner, the landlord wanted to double the current rent which played a major role in the decision to file for bankruptcy. Tia Juana's filed for Chapter 7 bankruptcy liquidation back in October. It listed more than $17,000 in assets and more than $495,000 in liabilities, according to court records. On Dec. 9, the trustee who was handling the bankruptcy filing submitted a motion to abandon the bankruptcy estate's interest in any remaining assets.