September 19, 2020

New California Homestead Exemption Increased For Bankruptcy Cases

2022-02-09T11:04:24-08:00September 19th, 2020|

What Is A Homestead Exemption? A huge concern for those who need to file bankruptcy is whether they will lose their home. [pullquote]See More On Exemptions In Bankruptcy[/pullquote] Every state has "exemptions" which protect the homestead (where one resides) up to a certain value. Until now, California's homestead exemptions were relatively low compared to other states. People filing bankruptcy often could not do a Chapter 7 case because they could not protect enough equity in their home. And the bankruptcy [...]

California Homestead Exemption Set To Change For Bankruptcy Per AB 1885

2022-02-09T11:03:21-08:00September 5th, 2020|

California Homestead Exemption Will Increase In January 2021 On September 2, 2020 the California legislature passed AB 1885 (and SB 832) which will substantially increase California's homestead exemption. This is a very important change and will enable many homeowners to eliminate their debts in bankruptcy without having to lose their homes to do so. The current homestead exemption, under CCP 704.730,  ranges between $75,000 to $175,000 and depends on whether you are single, married, over 65 or disabled, or with [...]

August 29, 2020

Small Business Bankruptcy Chapter 11, 7, 13. Do You Need An Attorney?

2022-03-22T10:56:11-07:00August 29th, 2020|

Should Your Business File Bankruptcy? Many businesses are failing due to the COVID-19 Pandemic, especially small businesses. Business owners are faced with the difficult decision of whether to try to save their business, or fold up and close. I get many calls each week from business owners who tell me they need to file bankruptcy, but do not understand what it does, or does not, accomplish. There are a lot of misconceptions about options businesses have in bankruptcy. This article [...]

How Can You Pay For And Afford A Bankruptcy Lawyer Attorney When You Have No Money?

2022-03-22T10:55:13-07:00August 7th, 2020|

It is an obvious dilemma. How can you afford a bankruptcy attorney when you have no money? Like anything else in law, representation by an attorney - and the quality of the attorney - can make a big difference. So what can be done to enable the hiring of a bankruptcy attorney? Chapter 7 or Chapter 13 (or Chapter 11)? For individuals, your bankruptcy chapter choices will be either Chapter 7 , Chapter 13, or Chapter 11.  Learn About The [...]

July 19, 2020

Woke And Broke: Millennials and Bankruptcy Filing Options For Those Under 40

2022-02-09T11:10:56-08:00July 19th, 2020|

In an article titled "Millennials get woke to economic woes" Dave Lee of The Los Angeles Times examines how the COVID-19 pandemic is hitting Millennials particularly hard, economically. The pandemic tends to affect those of older generations more harshly. Millennials are forced to shoulder the economic burden by not working during their peak earning years. These are years where they are trying to climb the financial income ladder and many have entry level jobs. Additionally, Millennials have some of the [...]

June 8, 2020

How Can Bankruptcy Help A Small Business During Covid-19?

2021-07-25T18:13:19-07:00June 8th, 2020|

The COVID-19 pandemic is wreaking havoc on small businesses. "Mom and Pop" stores and other small businesses are the most affected and least likely to survive the downturn in business. Employees are being laid off, businesses are closing, and vendors of  businesses are losing their businesses. These are difficult times to be sure. When faced with this reality,  what steps can you take to recover? Especially when the problems thrust upon you by circumstances are beyond your control. Small businesses [...]

April 16, 2020

Bankruptcy Can Protect CARES ACT Stimulus Check Payments From Creditors

2021-07-25T18:15:39-07:00April 16th, 2020|

Stimulus Check  Payments Are Not Protected From Creditors We all anxiously await the first round of Stimulus Check payments from the government. But Congress did not protect these funds from collections by Creditors. Therefore, if a creditor (someone to whom you owe money) has the right to collect from you, they can take your CARES ACT stimulus payment from your bank account (and garnish your wages and place liens on other assets). For most creditors, the ability to take money [...]

March 15, 2020

How To Avoid Bankruptcy And Prevent Effects of Coronavirus Covid-19

2021-07-25T18:19:39-07:00March 15th, 2020|

Debt Caused By The Coronavirus We are living through some truly bizarre times. The latest Coronavirus, named "Covid-19" has halted businesses, entertainment, social events, and caused the stock market to tumble. The medical impact of this virus is being debated daily (and every minute), but the economic impact will undoubtedly be devastating and could last for years. The inability of certain businesses to operate at full capacity (such as restaurants) and those relying on international commerce will suffer greatly, and [...]

February 17, 2020

Can You File Bankruptcy On Medical Bills Debt In Chapter 7 or 13?

2021-12-18T13:23:13-08:00February 17th, 2020|

According to recent studies, medical bills are the major cause of individual bankruptcy filings in America. In an article written by Lorie Konish for CNBC.COM summarizing recent studies, two-thirds of people who file for bankruptcy cite medical issues as a key contributor to their financial downfall. I am not sure how accurate that is, but as long as the insurance industry controls medical care in this country, people will have medical bills that they cannot pay. Medical Debt Can Be [...]

January 5, 2020

How Does Bankruptcy Work?

2021-07-25T18:23:15-07:00January 5th, 2020|

What exactly is bankruptcy? People often refer to having no money as "being bankrupt". But that is not bankruptcy. Bankruptcy is a set of laws designed for individuals and businesses (and also railroads and cities) who are unable to pay all their debts when due. What Do Bankruptcy Laws Do? The big picture:  Bankruptcy law is designed to alleviate obligations of debtors (those who owe money) balanced with the rights of creditors (those to whom money is owed) to maximize [...]

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