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 …
WHEN ARE YOU ENTITLED TO THE HOMESTEAD EXEMPTION? Read More »
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 …
WHAT HAPPENS TO NON-EXEMPT ASSETS IN A BANKRUPTCY? Read More »
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 …
If you own a business that runs into financial difficulty, and faces shutting down while owing quite a bit of money, you may wonder if you are liable for the debts of the business. Here are some of the circumstances under which you are, or could be liable. NO SEPARATE ENTITY. If your business is …
ARE YOU PERSONALLY LIABLE FOR YOUR COMPANY’S DEBTS? Read More »
When anyone files a bankruptcy, an “Automatic Stay” goes into effect. This stops most types of legal action against or attempts to collect a debt from the debtor (the person or entity that filed the bankruptcy). A lawsuit cannot be started or continued. Foreclosures on the debtor’s real estate are stopped. Eviction proceedings are generally …
There are 2 ways that a bankruptcy proceeding can end – with a DISCHARGE or a DISMISSAL. Since these two terms are similar, they are often confused. A DISCHARGE is a court order prohibiting further attempts to collect debts. This is goal that most people filing bankruptcy are seeking. It usually means that the bankruptcy …
In a foreclosure, a secured creditor takes ownership of, or sells, the collateral securing the loan, usually because of a default in payments on the loan. The most typical example is where a borrower fails to make mortgage payments on a home, and the bank, or other lender, takes possession of the property. As of …
A JUDGMENT is a final court order determining the rights and obligations of the parties to a lawsuit. Typically, it is an order establishing that one party (usually the plaintiff) is owed a certain amount of money by the other (usually the defendant), and is entitled to use any legal means to collect the judgment. …
