MKD LAW

For the last forty years Michael Mastro has been Seattle’s Donald Trump.  He is now in need of a really, really good Washington bankruptcy attorney.  While there are chronological inaccuracies in that statement (Donald being 20 years younger), the analogy is sound.  For years, Mastro’s decisions on which properties to develop and not develop have literally shaped the face of Seattle.

Known for aggressive tactics, Mastro lined up a successful string of business decisions including the sale of $211 million in office buildings and garages to Boeing, the sale of two apartment complexes in Lake Stevens and Federal Way to Dino Rossi, culminating in 2007-2008 with a reported income of $56 million!

However, the greater the reward, the greater the risk, and when the market crashed in Seattle, as it did all over the nation, Mastro was caught in the same pickle as many homeowners; owing more on his properties then the property is worth.  Mastro owes $27.5m on the $20m valued Lakeview office building in Fremont, $30m on a $15m valued subdivision in Pierce County; and these are just two of over a dozen different properties spread out over the Puget Sound area.

The grand total of all this is over $550 million in liabilities and debts, and only $250 million in assets.  It’s being called Western Washington’s “biggest” bankruptcy case ever, and might take up to half a decade to sort out.  This is one huge Washington bankruptcy case!  In Mr. Mastro’s case, a good Washington bankruptcy lawyer can do many things to protect him and his assets.

The complexities of asset liquidation, court rules, and bankruptcy laws are extreme.  No doubt Mastro will have a team of Washington bankruptcy attorneys working on his case for the next five years. When it comes to protecting your assets and navigating a bankruptcy, you better go with the right team of lawyers.

Detroit is a city in ruin, subject to the fallout of an economic a-bomb.  Once the fourth largest city in the US containing the iconic leaders of the automotive and music recording industries, Detroit is now the modern day equivalent of Dresden; a burned out shell of its former existence.

Having lost half of its population to a modern day exodus, Detroit is now one of the poorest, most segregated, and most uneducated cities in the country.  In truth, it’s really kind of sad given its proud history.

Reeling from the financial fallout of a drastically diminished tax base, Detroit struggles to provide even minimal services to its citizens.  In response, residents began to celebrate Halloween by going out on the town…and setting fire to all of its abandoned, dilapidated buildings.  No, we’re not joking her folks.  Apparently, it’s absolutely true.

With a budget of $1.6 billion, Detroit is looking at a deficit of over $450 million.  In other words, unless the city completely redesigns its government, drastically cuts its finances, or suddenly finds a million middle class folks who want to live there, it will go literally bankrupt.

While many will not be surprised by Detroit’s financial situation, some will be surprised by the possibility of Los Angeles also facing bankruptcy.  L.A. currently has a deficit of over $500 million.  It’s problem, however, is slightly different then Detroit’s; rather than have a deficit as result of not enough people, L.A. has a deficit because too many people…as in too many contractually obligated, unionized employees.

L.A. has a decent economy, in as much as any city can have one during these tough times, but even a small dip in tax revenue has caused the city’s overblown payroll to come back and bite hard.  As a result of entrenched employee interests, the city now struggles to find areas of its budget to cut and is staring down the barrel of a bankruptcy.

The two stories above show how changing conditions can quickly affect one’s financial situation.  Washington State is facing a similar problem on many levels.  The current recession has dramatically impacted the state’s tax base and Olympia is facing a 2.9 billion dollar shortfall.

Many of our friends and neighbors here in Washington are facing a similar crisis on a personal level.  Washington bankruptcy filings continue to rise every month.  Whether you didn’t see trouble coming, weren’t able to respond quickly enough to changing market forces, or simply got laid off, times are hard and money is short.

If you and your family find yourself coming up short every month and struggling just to pay your rent, put food on the table, keep the electricity on, and put gas in your car, it may be time to consider getting a fresh start through a Washington bankruptcy.  Declaring bankruptcy is not for everyone, and there may be other viable options available. 

If you qualify, however, filing a WA State bankruptcy may just be your best option.  It can leave you debt free while also dramatically increasing your monthly cash flow, which will allow you to at least get by until our economy starts picking up again.

George Clinton is known as one of the most innovative funk musicians of all time. During the 70’s, he defined African American music while many of today’s iconic rappers and hip-hop artists were still in diapers.  Perhaps that is how Clinton became one of the most sampled musicians of all time and his name the prophetic embodiment of the last twenty years of American politics.

Or maybe he was just a really good musician.  I tend to think it’s the latter myself.

Anyways, one thing Clinton wasn’t good at was reading legally binding documents.  After a legendary run in the 70’s with the bands Parliament and Funkadelic, Clinton had to go solo as a result of complicated copyright and trademark issues associated with the band names.

To this day he struggles with old business partners and managers, who he claims, forged his signature to sign away all of the rights to his back catalogue.  Given that the music industry has a well developed a reputation of exploiting musicians, it’s hard fault Clinton for these problems, as it appears as if he was indeed victimized.

In 1984, however, when all of the mismanagement of his career forced Clinton to file bankruptcy, he made a mistake that dwarfed all others.  He failed to disclose every song between 1976 and 1983 as a possible source of income.

The result was catastrophic … an estimated loss of $100 million in royalties.  Blame for this lack of foresight can fall on both Clinton and his attorney; it is always important to maintain open communication between client and attorney.  Frankly, whomever his bankruptcy attorney was at the time should probably be disbarred.

You know, during these incredibly difficult times, more and more people find themselves behind the financial eight ball.  If you or someone you love lives in WA State and is struggling to meet their monthly obligations, it might be time to consider seeking protection under federal and Washington bankruptcy laws.

Despite what you may have heard, the new 2005 bankruptcy laws have actually done very little to prevent most people from still qualifying for bankruptcy relief.  If you have questions about your legal rights and bankruptcy options, you owe it to yourself to consult with a good Washington bankruptcy lawyer.

Declaring bankruptcy is always an uncomfortable choice.  Many of our Washington bankruptcy clients struggle to reconcile the decision with their naturally ingrained work ethic; even when they know that a bankruptcy is a legitimate chance to wipe the slate clean and start again, they still consider it a “failure.”

Sometimes, however, it is the only choice after a series of difficult choices.  Take Lorraine Bracco, for example.  What else is an actress who hasn’t acted in five years because of a protracted and very expensive legal custody battle going to do?  Like many of our WA State bankruptcy clients, she was completely out of options.

As another example, take Kim Basinger.  The reason Basinger went bankrupt is that she backed out of a verbal contract with Main Line Pictures and was ordered by a court to pay $8.1 million.

When hit with a suit like that, the court often takes into account personal assets.  That $20 million dollar community, sold for just over $1 million.  But don’t worry, Basinger was able to bounce back from her bankruptcy three years later when a little film called LA Confidential hit the theatres and earned her an Oscar.  That other film she backed out of, Boxing Helena, also won an award…Worst Director.

Many people end up filing for bankruptcy as a result of a large judgment.  If you live in WA State and have questions about whether or not filing for bankruptcy is a good way for you address your financial problems, it’s always best to consult with an experienced Washington bankruptcy attorney.

A good WA State bankruptcy lawyer is familiar with the bankruptcy code.  They should be able to determine in a relatively short period of time, and several hours at the most, whether or not you can qualify for bankruptcy under the 2005 revisions that introduced the means test.

In our experience, however, the overwhelming majority of people who could qualify for a Washington bankruptcy under the old laws, can still qualify today.  This is because the primary tenet of bankruptcy law remains the same.  If you have little no ability to pay your debts and obligations after you cover your bare minimum living expenses, the federal and Washington state bankruptcy laws are here for your protection. 

Despite a lot of press coverage touting the difficulty of filing under the new laws, the 2005 revisions did little to change this primary basis for seeking relief under the bankruptcy code.

Speaking of politicians…what former US President once had to pay 150K in debts to a Vanderbilt?

Ulysses S Grant, my nominee for best presidential name ever, can best be described as the one of the greatest military leaders and one of the most ineffective presidents in the history of America.  As a military man, Grant was known for an ability to outmaneuver his enemies and strike where and when it was least expected.

As a president, Grant established his legacy as a supporter of civil rights during the Reconstruction period, and as man concerned about the African American and Native American populations, as fighter of the KKK.  Despite being a leader of men, however, as president he was apparently only able to attract idiotic and corrupt men into positions of political power.  The economic depression of 1873, combined with a variety of domestic and international scandals forever marred his reputation as a president.

Unfortunately for Grant, life after the presidency did not get any better.  Having forfeited his military pension upon being elected president, Grant made a series of decisions that eventually led to bankruptcy.  A world tour on his own dime saw him visit England, Scotland, Ireland, Germany, Russia, Egypt, Israel (then the Holy Land), Siam (Thailand), Burma, China, and ended with Grant arbitrating a territorial dispute between Japan and China and receiving an honorary doctorate from the University of Wisconsin.

Later he would invest in a banking partnership only to have his partner, Ferdinand Ward, bankrupt the company and flee with the money.  Grant eventually paid off Vanderbilt to the tune of $150,000 with many of his Civil War mementoes.

It wasn’t until after his death that congress established the presidential pension, ensuring that our presidents would no longer die penniless.  If only we all had that backup plan.  It just goes to show, if the president of the United State can go bankrupt, anyone can.

Here’s my advice, if you are facing a financial crisis, do not try and bury your head in the sand.  It will only make things worse.  Instead, seek out the advice of an experienced Washington bankruptcy lawyer.  Just make sure it isn’t a backstabber named Ferdinand, my nominee for best villain name (see Rio Ferdinand).

In today’s troubled economy, much like the financial crisis and depression of 1873, many of those around us are hurting.  With our economy still in shambles, unemployment at double digits, and our local housing market still in the toilet, it’s not surprising that so many Washingtonians are having difficulty just paying their rent and covering the basic necessities.

Fortunately, help is available.  Your creditors either want you to believe that filing for bankruptcy is not an option any more, or that even thinking about filing a Washington bankruptcy somehow makes you a bad person.  This is absolutely poppycock!  The real truth is that over 90% of people still qualify under the new bankruptcy laws.  More importantly, the Federal and Washington State bankruptcy laws were specifically put into place to help honest and hard working people who have fallen on hard times.

Of course, filing a WA State bankruptcy is not for everyone.  And, there are other alternatives.  If, however, you are able to qualify, it may be your best option.  A Washington bankruptcy can do many things such as help you save your home from foreclosure, wipe out your credit card debts and medical bills, and it will also free up immediate monthly cash flow to help you pay for basic necessities. 

You don’t get many chances to hit the “reset” button in life.  But a Washington bankruptcy is one of those rare chances.  And, if by chance you are looking for a good Washington bankruptcy lawyer, might we recommend David M. Lux.  He successfully files hundreds of bankruptcies in Western Washington every year.

There is a saying in Ireland, “Maradona good, Pele better, George Best.”

Maradona was the captain of the 1986 World Cup winning Argentinean national team. During the quarter final he scored the “Goal of the Century,” by dribbling past six English defenders and the goalkeeper.  Many South Americans still consider this to be the greatest goal ever scored.

Pele is the only player to win three World Cups, and is the all time leading goal scorer of the Brazilian national team which, in turn, is the all time best national team in the world.  Pele’s soccer accomplishments are legendary to say the least.

George Best, by comparison, never went to the World Cup and is comparatively unknown outside of Europe.  As a player for Manchester United, however, Best won two league titles and the European Cup.  But he was perhaps best known for his life off the field.

For the soccer illiterate American out there, he can best be compared to Babe Ruth, the first celebrity soccer player.  Pele himself once said, “George Best was the greatest player in the world.”  No small compliment considering the source was probably the man considered the greatest soccer player of the 20^th century.

And yet even the great Best had his low points.  As a lifelong alcoholic, the disease that would eventually kill him, Best struggled with the dissolution of his 1^st marriage, more than one failed business venture, and multiple run ins with the law.  This all cumulated in 1982 when he declared bankruptcy.  Best took ten years to be discharged from his bankruptcy and continued to struggle with his finances.  By 1998, he was 70k in the hole on his mortgage.

Why Best couldn’t recover from his bankruptcy remains a mystery; many believe it had to do with his champagne lifestyle.  Best once famously said, “I spent a lot of money on booze, birds and fast cars.  The rest I squandered.”  I can’t help but think that it might have something to do with the fact that Best often chose legal help from a lifelong drinking buddy.  God knows if I go into bankruptcy, I’m not going to get help from the guy with the gin and tonic.

And, if you live in WA State and are contemplating whether or not filing for bankruptcy is the best option for you and your family, a word of advice:  Don’t hire your drinking buddy.  Seriously, friends, things are tough out there for a lot Washingtonians.  If you or loved one is sinking further and further behind every month, it just might be time to consider a Washington bankruptcy.  If so, might we recommend Washington bankruptcy lawyer David M. Lux.  He is experienced, knowledgeable, and dedicated.