All items from San Diego Bankruptcy Lawyer | Bankruptcy Information

California has three separate statutory provisions that prohibit a lender from obtaining a deficiency judgment after foreclosure.  These provision are found at Cal. Civ. Proc. § 580b, Cal. Civ. Proc. § 580d in conjunction with Cal. Civ. Proc. § 726(a), and after July 15th, 2011, Cal. Civ. Proc. § 580e.  A deficiency is simply the loss that a lender sustains after the property is foreclosed.  The deficiency is measured by the difference between what is owed on the loan and what the bank collected from selling the property after foreclosure. A deficiency judgment after foreclosure may result in a wage garnishment, bank account levy, and a judgment lien against other property owned by the borrower.  Because of the seriousness of a deficiency judgment sound legal advice should be sought out whenever foreclosure appears imminent.

Posted 2 years 34 weeks ago

Most experts agree that financial difficulties rate highly among the leading causes for divorce.  Not surprisingly, when couples are dissolving their marriage they will often seek my advice regarding bankruptcy.  I often hear from clients who are referred by a family law attorney.  I also sometimes see clients after a family court judge has advised them to seek counsel from a bankruptcy attorney.   This article explores a few of the most frequently asked questions involving bankruptcy law as it pertains to marital dissolution.

Posted 2 years 36 weeks ago

The answer to whether or not unemployment benefits are dischargeable in bankruptcy hinges on the following:  1) whether the state receives adequate notice of the bankruptcy filing; 2) whether the state upon proper notice brings a timely complaint (adversarial proceeding) in the bankruptcy court, and 3) whether the state wins its complaint and proves that the debtor obtained the unemployment overpayment by fraud or theft as opposed to having made a reasonable mistake.

Posted 3 years 4 weeks ago

When you file for Chapter 7 bankruptcy, an automatic stay is put in place.  This is the legal mechanism that stops foreclosure, repossession and collection efforts including wage garnishments. This can be a great relief for you. You can take a breath and work on reorganizing your priorities and assets.
However, under certain circumstances, creditors can ask the court to allow them to go ahead with collections in spite of the bankruptcy filing.  This is called a Motion for Relief from Automatic Stay, and a successful one often negates the whole purpose of filing for Chapter 7 bankruptcy in the first place.
These motions are most often filed by mortgage companies and car loan lenders, but any creditor can file a Motion for Relief if they have a compelling reason to resume collection efforts before your Chapter 7 bankruptcy case is otherwise completed.

Posted 3 years 10 weeks ago

The simplistic answer to the question of whether you have to file bankruptcy jointly when you are married is no.  You can choose to bankruptcy individually.  However, whether or not this is the best decision depends on a number of factors and often involves detailed legal and factual analysis tailored to the individual situation.
First off, my discussion of this topic is limited strictly to California bankruptcy filings.  California is a community property state with unique exemption laws.  My analysis would not necessarily be appropriate in states that have different property and exemption laws.
Whether you decide to file bankruptcy with your spouse or not will depend on a number of factors as follows:
1)      were the debts incurred jointly;
2)      does one of the spouses have separate vs. community property;
3)      are there issues because one spouse is ineligible for a bankruptcy discharge;

Posted 3 years 12 weeks ago

Bankruptcy mills are high volume law practices that advertise aggressively and provide poor quality legal services.  Typical attributes of a bankruptcy mill are as follows:
a)  rely heavily on poorly supervised non-attorney staff; b) lack adequate controls over workflow (correspondence to 3rd parties & clients) and court deadlines; c)  cut corners both ethically and substantively; d) minimal attorney involvement; e) routinely fail to file necessary documents, and frequently show up to hearings unprepared, and f) Have usually been admonished by the court on more than one occasion.

Posted 3 years 12 weeks ago

A new Chapter 13 controversy is brewing over whether a debtor can take an additional $200 “Old Car” operating allowance on the means test for paid-off vehicles that are more than six (6) model years old or that have more than 75,000 miles.  While the United States Trustee has generally conceded the issue, a number of Chapter 13 trustees have not.  In the Southern District of California where I practice, one of our Chapter 13 trustees has joined the new trend in trying to challenge the extra “Old Car” operating allowance.

Posted 3 years 14 weeks ago