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A party who files a bankruptcy proceeding is called the “debtor.”  A party who is, or claims to be owed money by the Debtor is called a “creditor” (whether or not the Debtor agrees that money is owed). When a bankruptcy case is filed, the “Automatic Stay” immediately goes into effect.  This is a court […]

During the Covid pandemic, a number of businesses got loans from the Small Business Administration.  Now, some of these loans are in default.  Based on our experience, and other information available, the SBA has not been overly aggressive on collecting past due loans.  Although we’ve had quite a number of clients facing lawsuits, we haven’t

Most people would probably respond “no.”  The statute of limitation to sue for a debt is generally 4 years in California.  [California Code of Civil Procedure Sec. 337]  But what does that mean, exactly?  The statute of limitation is the period in which a lawsuit can be filed.  In other words, if Joe owes $5,000

If you are going through a divorce, how much should you let your spouse know?  The short answer is “everything.”   At least everything that might relate to your finances.  California Family Code Sec. 2100 requires that shortly after a divorce proceeding is filed, both parties must make a full and accurate disclosure of all assets

“Summary” means a brief account of something giving the main points, or done quickly without formality.  In legal proceedings, it means short and free from the complexities of a full trial.  Summary comes from Latin summa, meaning “whole, totality or gist.” Summary Dissolution is a procedure in California under which a married couple can get an easier (but not faster) divorce.

A judgment continues to exist for 10 years after its entry, [CCP Sec. 683.020] but can be renewed for another 10 years for an indefinite number of times.  [CCP Sec. 683.120]. The longest I heard of was one client who now owed more than $40,000 on a judgment for $10,000 that had been entered 40

Generally, taxes cannot be discharged (eliminated) in a bankruptcy.  However, personal income taxes (as opposed to corporate tax, sales tax, payroll tax, etc.), can be discharged if: First.  The date the tax return was due to be filed is more than 3 years before the bankruptcy is filed.  The 3 year period starts when the

The homestead exemption is the amount of equity in a property used as a home that cannot be taken by creditors or a bankruptcy trustee.  Generally, when one files a bankruptcy, the amount of the homestead exemption is based on the law of the state where one resides.  The homestead exemption varies quite a bit

A Chapter 7 bankruptcy is called a “liquidation,” meaning that any assets the debtor has are sold or converted to cash, and are then divided among the creditors.  In a Chapter 7, the court appoints a Trustee who has the task of finding, liquidating and distributing any assets. A debtor is allowed to keep certain

In California, a corporation is deemed to be a “person.”  [Cal. Corp. Code Sec. 28043].  It has most of the same rights as does a “natural person” (a human being rather than an artificial entity such as a corporation or LLC), including the rights to incur liabilities, borrow or lend money, or carry on a