All items from JCH Law Firm Southern California Bankruptcy Blog

CertBear  JCH LAW FIRM Pleased To Announce Attorney Jeff Hsu is Now a California Board Certified Bankruptcy SpecialistAttorney Jeff Hsu of JCH LAW FIRM is a California Board Certified Bankruptcy Legal Specialist
JCH LAW FIRM is pleased to announce that attorney Jeffrey Hsu is now a California State Bar Board Certified Legal Specialist in Bankruptcy Law as of August 1, 2014.
We look forward to continuing to serve the Southern California community at large, and we hope our current and future clients feel even more confident that JCH LAW FIRM is right for their needs.

Posted 24 weeks 4 days ago

At JCH Law Firm, we are able to represent both Debtors and creditors with the same capabilities and we can do so throughout the greater Los Angeles regions including Orange County and Riverside.  Attorney Jeff Hsu has experience representing hard money lenders, and other secured and unsecured creditors involved in the bankruptcy process including Chapter 7 , 11, or 13.
In Chapter 7 cases, creditors must be vigilant to file 523 non-dischargeability actions or attend the 341 Meeting of Creditors.  In chapter 11 and chapter 13 cases, creditors may have to file objection to plans or disclosure statements, and/or file non-dischargeability actions during the bankruptcy process.
Remember, timelines in bankruptcy are critical and oftentimes creditors only get one bite at the apple or otherwise lose their opportunity to protect their claims.   Make sure this doesn’t happen to you.  Whatever your need, give us a call at 626-999-5959.

Posted 51 weeks 5 days ago

On the eve of new year’s, I thought it’d be a good idea to discuss an issue that arises with every new year.
2013 is closing which means tax season is approaching.  Now if you are set to receive a tax refund from the IRS or the Franchise Tax Board, make sure you understand the right to that money is an asset in your bankruptcy case.
I’ll say it again – that money is an asset in a pending bankruptcy whether or not you have received the money.  It’s a contingent asset, but it’s an asset nonetheless.
What this means is that you must be able to protect the refund under the California Statutes or the statute applicable in your case, whether that be the federal exemptions under 11 UCS Section 522(d) or the California Code of Civil Procedure, or the statutes of another state if you have lived different states prior to filing.
Don’t lose your tax refund just because you are filing bankruptcy.  Make sure to consult an experienced bankruptcy attorney who understands how to protect this money for you.   Best of luck and happy new years!

Posted 1 year 3 weeks ago

What is a Chapter 11 Single Asset Real Estate Bankruptcy Case?  Well, first, these are commonly referred to as “SARE” cases.
A SARE case is one where there is a single piece of property or project, other than residential real property with fewer than 4 residential units, which generates substantially all of the gross income of the debtor.  See 101(51B) of the US Bankruptcy Code.   SARE cases allow mortgage holders to obtain relief from stay within just 90 days unless a feasible plan has been filed or the DIP has commenced monthly payments equivalent to interest to each secured creditor.  11 USC 362(d)(3).
SARE cases are needed when the property is not self sustaining.  Usually, there is a cash flow issue, and/or foreclosure is on the horizon.    It has been researched by bankruptcy experts that the most dominant factor in the success of “SARE” cases is that the value of the real property often determines the likelihood of success.   It doesn’t have to do with the amount outstanding as much as the outcomes seemed to correlate with property value more than anything else.   The higher the value the more likely the SARE cases will be successful.

Posted 1 year 4 weeks ago

So how does bankruptcy effect Employment status?  11 USC Section 525 gives an explanation of that.  The bankruptcy effect on employment is thus:
Private Employers
525(b) says that no private employer may terminate SOLEY because of a bankruptcy.  So that means bankruptcy can actually be a reason but it cannot be the only reason.   It also says that no private employer may discriminate with respect to employment solely because of BK.
Government Jobs
Under 525(a), the government must similarly abide by the same expectations a private employer has with respect to discriminating or terminating an employee who has filed BK or a potential employee who has filed a BK.
Now if one hasn’t filed BK but let the cat out of the bag?  Perhaps that isn’t covered under 525.  Perhaps an employer can discriminate against those contemplating a BK.   That’s a highly unlikely scenario but it needs to be considered.
In most bankruptcy attorneys’ experience, job discrimination or loss of employment is rare, but it has happened before.   However, always remember an employer cannot do so SOLELY because the debtor is a bankrupt or was a bankruptcy.

Posted 1 year 15 weeks ago

People typically think “LA Dodgers Bankruptcy” or “Hostess Bankruptcy” or “General Motors Bankruptcy” when hearing the term Chapter 11 bankruptcy.  But let a California Chapter 11 bankruptcy attorney explain, and you will find that Chapter 11 bankruptcy also applies to people, such as individuals who are sole proprietors, business owners, or wage earners with either secured debt above $1,149,525.00 or unsecured debt beyond $383,175.00.  In such cases, chapter 13 is not available.  For such individuals, a chapter 11 may be the only option.
Creditors usually get to vote in chapter 11 cases.  However, that isn’t necessarily true in individual, non-corporate, chapter 11 cases.
The 9th Circuit Bankruptcy Appellate Panel decided in In Re Friedman (March 19, 2012), that the absolute priority rule does not apply in an individual chapter 11 case. Why the distinction?  Well, 11 U.S.C. Section 1129(b)(2)(B)(ii) says that for a class of unsecured claimants that ”the holder of any claim or interest that is junior to the claims of such class will not receive or retain under the plan on account of such junior claim or interest any property, except that in a case in which the debtor is an individual, the debtor may retain property included in the estate under section 1115, subject to the requirements of subsection (a)(14) of this section.”

Posted 1 year 16 weeks ago

Need a Rowland Heights Bankruptcy Attorney?   Contact me, Attorney Jeffrey C. Hsu, with JCH LAW FIRM.   I can assist clients in the Rowland Heights area in its surrounding communities as we service the San Gabriel Valley area and all surrounding Southern California communities.   Our office is in the heart of the San Gabriel Valley region in Alhambra, CA.  Call us today at 626-999-5959 or email us at to set up your free consultation today!
My focus is on each and everyone of my clients.  I meet with each client and make sure that the bankruptcy process is right for them.   At JCH LAW FIRM, we can help whether your case is simple or complex, whether you are an individual, or a business owner.    Regardless of circumstance, I will walk you through the bankruptcy process, whether it’s chapter 7, chapter 11, chapter 13, chapter 12, or otherwise.   Believe it or not, you can even be forced into bankruptcy if your creditors force you into an involuntary bankruptcy – I can help with that too.

Posted 1 year 16 weeks ago

I just ran across the website of a non-attorney business that said you don’t need a bankruptcy attorney for consumer cases, and that all consumer bankruptcy attorneys were basically overcharging for services that could be performed for a fraction of the price by non-attorneys.    This type of blanket statement is just flat out scary because it’s wrong.       
When I interned for the United States Trustee’s Office, I assisted with cases where the US Government pursued individuals and businesses that prepared bankruptcies illegally under the bankruptcy code in violation of 11 USC 110.  Not only were individuals commonly overcharged in violation of both local rules of bankruptcy and the federal rules of bankruptcy, many of the cases were prepared improperly.    And even worse, some of the issues in the bankruptcy filings were so serious, the debtors  didn’t receive a discharge.
On top of that, anyone who is paid even a cent to assist you in preparing a bankruptcy must disclose the fact they assisted you.  Many non-attorneys (and yes, even some attorneys) will take your money yet not disclose on the forms that they assisted you.  Use your common sense to figure out why that is…
Here’s a few basic examples of why you might just want an bankruptcy attorney’s assistance:

Posted 1 year 18 weeks ago

If you are thinking about filing Southern California Chapter 13 Bankruptcy, then make sure you know how much you owe your creditors.   Most potential debtors typically focus on how much they must repay based on their disposable income, but many fail to really take a close look at what they owe.
For example, oftentimes, creditors might not hold legitimate claims in bankruptcy.  Claims are controlled under Section 502 of the bankruptcy code, Because allowance or disallowance of claims against the estate are core proceedings under 28 USC Section 157(b)(2)(A), which may be heard and determined by bankruptcy judges, it is in the Debtor’s best interest to ensure that the claim is actually owed.
Under 11 USC Sction 101(5)(A), a claim is a right to payment or a right to an equitable remedy for breach of performance if such breach gives rise to payment.   Thus, make sure your creditor actually holds a claim.  If there is no right to payment, then your creditor is not actually a creditor, but a third party with no direct interest in your case as it relates to recovery.

Posted 1 year 22 weeks ago

My current office is located in the heart of the city of Alhambra, California so that I can easily service all clients in the San Gabriel Valley and beyond.  The city of Pasadena, California is no different.  Oftentimes, Pasadena clients don’t believe or realize just how close the city of Alhambra really is.   A Google maps search indicates it’s merely a 13 minute drive of 5 miles, more or less.
My Pasadena-based clients are often quite happy to know that I can assist them with their bankruptcy case and that Alhambra merely minutes away from them.   So if you are in the city of Pasadena or close by, and you need a bankruptcy attorney who really cares and who will personally handle your bankruptcy, do not hesitate to give me a call at 626-999-5959.

Posted 1 year 24 weeks ago