Key Practice Areas
Key Practice Areas
Chapter 7 Bankruptcy
CHAPTER 7 BANKRUPTCY ATTORNEY FOR LINCOLN, ROCKLIN, ROSEVILLE, SACRAMENTO, REDDING, CHICO, COLFAX, TRUCKEE, NEVADA, YOLO, SHASTA, TEHAMA, AND AMADOR, CALIFORNIA
Many hard-working people get into financial difficulty through no fault of their own. The loss of a job, a serious illness or another unexpected event can lead to a financial crisis and unmanageable levels of debt.
What can you do to get financial relief?
At the Bankruptcy Law Offices of Stephen Johnson,
we have guided hundreds of people like you toward a brighter financial future. We will work to obtain debt relief for you, while allowing you to keep as much of your property as possible.
Call (530) 823-3655, or contact us online for more information.
Key Practice Areas
Chapter 7 Bankruptcy
CHAPTER 7 BANKRUPTCY ATTORNEY FOR LINCOLN, ROCKLIN, ROSEVILLE, SACRAMENTO, REDDING, CHICO, COLFAX, TRUCKEE, NEVADA, YOLO, SHASTA, TEHAMA, AND AMADOR, CALIFORNIA
Many hard-working people get into financial difficulty through no fault of their own. The loss of a job, a serious illness or another unexpected event can lead to a financial crisis and unmanageable levels of debt.
What can you do to get financial relief?
At the Bankruptcy Law Offices of Stephen Johnson,
we have guided hundreds of people like you toward a brighter financial future. We will work to obtain debt relief for you, while allowing you to keep as much of your property as possible.
Call (530) 292-8562, or contact us online for more information.
You Can Keep Your Property
In most cases, you can keep most or all of your property , including vehicles, your savings and your personal possessions. If you are a homeowner, you will most likely be able to keep your home.
You Can Keep Your Property
In most cases, you can keep most or all of your property , including vehicles, your savings and your personal possessions. If you are a homeowner, you will most likely be able to keep your home.
Our attorneys have extensive experience in all aspects of bankruptcy. We work hard to enable our clients to retain as much property as possible, while discharging as many debts
as possible. Once we start working for you, creditor harassment stops, as do the threats of repossession, judgments and garnishment. A Chapter 7 bankruptcy can also stop foreclosure for some time, allowing you the time to gather money for your mortgage payments, work out a loan modification or prepare to file a Chapter 13 reorganization following the completion of your Chapter 7.
You will get an opportunity to start your healthy financial life once again.
Chapter 7 Bankruptcy And Alternatives
An attorney at our firm can review your situation and recommend the right solution for you.
These options include a Chapter 7 bankruptcy, which completely eliminates your unsecured debts such as credit card debts, medical bills and personal loans, sometimes referred to as a liquidation. Alternatively, your case may involve a Chapter 13 Bankruptcy that can significantly reduce your debts, while allowing you to keep your home, cars and property.
All you have to do is provide us with information about your financial situation and attend one meeting with the bankruptcy trustee. Our firm will do everything else to assist you in the process. In just a few months, you could eliminate your debts and obtain financial freedom once again.
Free Consultation With A Lawyer
We can meet with you during business hours in the evening or on a weekend by appointment.
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Our attorneys have extensive experience in all aspects of bankruptcy. We work hard to enable our clients to retain as much property as possible, while discharging as many debts
as possible. Once we start working for you, creditor harassment stops, as do the threats of repossession, judgments and garnishment. A Chapter 7 bankruptcy can also stop foreclosure for some time, allowing you the time to gather money for your mortgage payments, work out a loan modification or prepare to file a Chapter 13 reorganization following the completion of your Chapter 7.
You will get an opportunity to start your healthy financial life once again.
Chapter 7 Bankruptcy And Alternatives
An attorney at our firm can review your situation and recommend the right solution for you.
These options include a Chapter 7 bankruptcy, which completely eliminates your unsecured debts such as credit card debts, medical bills and personal loans, sometimes referred to as a liquidation. Alternatively, your case may involve a Chapter 13 Bankruptcy that can significantly reduce your debts, while allowing you to keep your home, cars and property.
All you have to do is provide us with information about your financial situation and attend one meeting with the bankruptcy trustee. Our firm will do everything else to assist you in the process. In just a few months, you could eliminate your debts and obtain financial freedom once again.
Free Consultation With A Lawyer
We can meet with you during business hours in the evening or on a weekend by appointment.
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Chapter 13 Bankruptcy
CHAPTER 13 BANKRUPTCY LAWYER SERVING LINCOLN, ROCKLIN, ROSEVILLE, SACRAMENTO, REDDING, CHICO, COLFAX, TRUCKEE, NEVADA, YOLO, SHASTA, TEHAMA, AND AMADOR, CALIFORNIA
For more than 30 years, the Bankruptcy Law Offices of Stephen Johnson, has helped people obtain debt relief. We use the bankruptcy system to guide our clients toward a more secure financial future.
We are experienced bankruptcy lawyers and have a comprehensive knowledge of the bankruptcy process. In every case, we work to obtain maximum debt relief while enabling our clients to keep as much of their property as possible.
Call (530) 292-8562, or contact us online
for more information. It could be the first step toward a more secure financial future for yourself and your family.
The Benefits Of A Chapter 13 Bankruptcy
Chapter 13 bankruptcy can help you obtain a partial discharge of debts and the financial breathing room you need to make a new financial start. Chapter 13 is sometimes referred to as a reorganization because it helps a consumer prioritize and pay off debts. It can stop the threat of foreclosure
immediately. You may be able to completely eliminate a second mortgage. Past due mortgage payments can be rolled into a three- to five-year payment plan, which spreads out those past due payments into a payment plan. You can even obtain a discharge of tax debts three years or more in arrears.
In most cases, you can keep your home, your vehicles and your personal property. You get the opportunity to rebuild your financial life on terms more favorable than before.
Chapter 13 Bankruptcy Is Not For Everyone
For some people, a Chapter 7 Bankruptcy
is a better option than Chapter 13. An attorney at our firm can review your financial situation and recommend the best solution for you.
The Bankruptcy Law Offices of Stephen Johnson can handle all aspects of your bankruptcy filing, from start to finish. As soon as we start working for you, foreclosure actions, repossession and creditor harassment stop. In a few short months, we will have a debt repayment plan in place and you will be on your way to a better financial future.
Contact An Attorney Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Chapter 13 Bankruptcy
CHAPTER 13 BANKRUPTCY LAWYER SERVING LINCOLN, ROCKLIN, ROSEVILLE, SACRAMENTO, REDDING, CHICO, COLFAX, TRUCKEE, NEVADA, YOLO, SHASTA, TEHAMA, AND AMADOR, CALIFORNIA
For more than 30 years, the Bankruptcy Law Offices of Stephen Johnson, has helped people obtain debt relief. We use the bankruptcy system to guide our clients toward a more secure financial future.
We are experienced bankruptcy lawyers and have a comprehensive knowledge of the bankruptcy process. In every case, we work to obtain maximum debt relief while enabling our clients to keep as much of their property as possible.
Call (530) 823-3655, or contact us online
for more information. It could be the first step toward a more secure financial future for yourself and your family.
The Benefits Of A Chapter 13 Bankruptcy
Chapter 13 bankruptcy can help you obtain a partial discharge of debts and the financial breathing room you need to make a new financial start. Chapter 13 is sometimes referred to as a reorganization because it helps a consumer prioritize and pay off debts. It can stop the threat of foreclosure
immediately. You may be able to completely eliminate a second mortgage. Past due mortgage payments can be rolled into a three- to five-year payment plan, which spreads out those past due payments into a payment plan. You can even obtain a discharge of tax debts three years or more in arrears.
In most cases, you can keep your home, your vehicles and your personal property. You get the opportunity to rebuild your financial life on terms more favorable than before.
Chapter 13 Bankruptcy Is Not For Everyone
For some people, a Chapter 7 Bankruptcy
is a better option than Chapter 13. An attorney at our firm can review your financial situation and recommend the best solution for you.
The Bankruptcy Law Offices of Stephen Johnson can handle all aspects of your bankruptcy filing, from start to finish. As soon as we start working for you, foreclosure actions, repossession and creditor harassment stop. In a few short months, we will have a debt repayment plan in place and you will be on your way to a better financial future.
Contact An Attorney Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Stopping Home Foreclosure
AUBURN, CALIFORNIA, BANKRUPTCY ATTORNEY
For most people, their home is their most precious physical asset as well as a source of emotional satisfaction and strength. Foreclosure is an event to be feared and avoided if at all possible.
Fortunately, the bankruptcy process provides some protection for people who are behind on their mortgage payments. Filing for bankruptcy can stop home foreclosure - and give a homeowner the time needed to rebuild their finances and get caught up on back mortgage payments.
At the Bankruptcy Law Offices of Stephen Johnson, we help people obtain debt relief while allowing them to keep their homes. We have helped thousands of people get current on their mortgage payments, and obtain a new financial start.
Call (530) 292-8562, or contact us online
to schedule a free consultation.
How To Keep Your Home
An attorney at our firm can review your situation and recommend the right solution for you.
For many homeowners, a Chapter 13 Bankruptcy
is the path toward a more secure financial future. It can stop foreclosure immediately. If you are behind on your mortgage payments, you can fold those past due payments into a Chapter 13 repayment plan and take from three to up to five years to get current on your mortgage payments. You can also reduce or discharge unsecured debts
and some past due taxes. The additional cash flow you receive as an immediate result of filing can make it much easier to cover your remaining debt payments.
For other homeowners, a Chapter 7 Bankruptcy
is preferable. It can stop foreclosure for up to seven months, providing you with the time you need to obtain money to either get current with your mortgage payments or find another place to live. You can obtain a complete discharge of many unsecured debts, such as credit card debts and medical bills.
Our firm helps you decide how to proceed, and handles all aspects of your bankruptcy from start to finish.
Is Your Home Worth Less Than Your Mortgage?
The Bankruptcy Law Offices of Stephen Johnson may also be able to eliminate a second mortgage through a Chapter 13 Bankruptcy. We can also examine the possibility of obtaining a loan modification that can reduce your first mortgage, reduce your monthly payments, reduce your interest rate, extend the mortgage repayment period or some combination of these.
Free Consultation With A Lawyer
While we can stop foreclosure at anytime up to the trustee sale, having more time will enable us to better protect your home and other assets. If you are behind in your mortgage payments or have unmanageable debts, contact us
for a free consultation before your problem turns into a crisis.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Stopping Home Foreclosure
AUBURN, CALIFORNIA, BANKRUPTCY ATTORNEY
For most people, their home is their most precious physical asset as well as a source of emotional satisfaction and strength. Foreclosure is an event to be feared and avoided if at all possible.
Fortunately, the bankruptcy process provides some protection for people who are behind on their mortgage payments. Filing for bankruptcy can stop home foreclosure - and give a homeowner the time needed to rebuild their finances and get caught up on back mortgage payments.
At the Bankruptcy Law Offices of Stephen Johnson, we help people obtain debt relief while allowing them to keep their homes. We have helped thousands of people get current on their mortgage payments, and obtain a new financial start.
Call (530) 823-3655, or contact us online
to schedule a free consultation.
How To Keep Your Home
An attorney at our firm can review your situation and recommend the right solution for you.
For many homeowners, a Chapter 13 Bankruptcy
is the path toward a more secure financial future. It can stop foreclosure immediately. If you are behind on your mortgage payments, you can fold those past due payments into a Chapter 13 repayment plan and take from three to up to five years to get current on your mortgage payments. You can also reduce or discharge unsecured debts
and some past due taxes. The additional cash flow you receive as an immediate result of filing can make it much easier to cover your remaining debt payments.
For other homeowners, a Chapter 7 Bankruptcy
is preferable. It can stop foreclosure for up to seven months, providing you with the time you need to obtain money to either get current with your mortgage payments or find another place to live. You can obtain a complete discharge of many unsecured debts, such as credit card debts and medical bills.
Our firm helps you decide how to proceed, and handles all aspects of your bankruptcy from start to finish.
Is Your Home Worth Less Than Your Mortgage?
The Bankruptcy Law Offices of Stephen Johnson may also be able to eliminate a second mortgage through a Chapter 13 Bankruptcy. We can also examine the possibility of obtaining a loan modification that can reduce your first mortgage, reduce your monthly payments, reduce your interest rate, extend the mortgage repayment period or some combination of these.
Free Consultation With A Lawyer
While we can stop foreclosure at anytime up to the trustee sale, having more time will enable us to better protect your home and other assets. If you are behind in your mortgage payments or have unmanageable debts, contact us
for a free consultation before your problem turns into a crisis.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Eliminate A Second Mortgage
LINCOLN, ROCKLIN, ROSEVILLE, SACRAMENTO, REDDING, CHICO, COLFAX, TRUCKEE, NEVADA, YOLO, SHASTA, TEHAMA, AND AMADOR, CALIFORNIA, BANKRUPTCY LAWYER
If the appraised value of your home is less than the value of your outstanding first mortgage, it may be possible to eliminate a second mortgage entirely through a Chapter 13 bankruptcy.
In just a few months time, you can obtain debt relief and more cash flow - while keeping your house, your vehicles and your personal property.
The Bankruptcy Law Offices of Stephen Johnson, has been helping people in our area obtain debt relief through the bankruptcy system for over 20 years. We are knowledgeable practitioners of bankruptcy law, and work to obtain maximum debt relief in every case we handle.
Call (530) 823-3655, or contact us online
for more information.
How To Lift A Second Mortgage
An attorney at our firm can review your financial situation and recommend the right solution for you if you are facing foreclosure or are perilously close to defaulting on your mortgage payments. This could including lien stripping, a process where the second mortgage on your property is removed based on the current value of your home.
If it is a Chapter 13 Bankruptcy
, we can take all measures needed to file bankruptcy for you and lift your second mortgage for a flat fee rate. This includes obtaining a certified appraisal of your home's value, development of a proposed bankruptcy plan and securing approval by the bankruptcy court.
In just a few months, you could be on your way to a more secure financial future.
Complete Debt Solutions
A Chapter 13 Bankruptcy
can do more than just eliminate a second mortgage. Chapter 13 can stop foreclosure
and allow you to keep your home. You can eliminate or reduce unsecured debts such as credit card debts, medical bills and personal loans. You may be able to obtain a discharge of taxes that are more than three years in arrears. Chapter 13 can give you the breathing room you need to rebuild your finances.
At the Bankruptcy Law Offices of Stephen Johnson, we provide complete debt solutions to hard-working people. We want to guide you to a debt-free future.
Free Consultation With An Attorney
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Eliminate A Second Mortgage
LINCOLN, ROCKLIN, ROSEVILLE, SACRAMENTO, REDDING, CHICO, COLFAX, TRUCKEE, NEVADA, YOLO, SHASTA, TEHAMA, AND AMADOR, CALIFORNIA, BANKRUPTCY LAWYER
If the appraised value of your home is less than the value of your outstanding first mortgage, it may be possible to eliminate a second mortgage entirely through a Chapter 13 bankruptcy.
In just a few months time, you can obtain debt relief and more cash flow - while keeping your house, your vehicles and your personal property.
The Bankruptcy Law Offices of Stephen Johnson, has been helping people in our area obtain debt relief through the bankruptcy system for over 20 years. We are knowledgeable practitioners of bankruptcy law, and work to obtain maximum debt relief in every case we handle.
Call (530) 823-3655, or contact us online
for more information.
How To Lift A Second Mortgage
An attorney at our firm can review your financial situation and recommend the right solution for you if you are facing foreclosure or are perilously close to defaulting on your mortgage payments. This could including lien stripping, a process where the second mortgage on your property is removed based on the current value of your home.
If it is a Chapter 13 Bankruptcy
, we can take all measures needed to file bankruptcy for you and lift your second mortgage for a flat fee rate. This includes obtaining a certified appraisal of your home's value, development of a proposed bankruptcy plan and securing approval by the bankruptcy court.
In just a few months, you could be on your way to a more secure financial future.
Complete Debt Solutions
A Chapter 13 Bankruptcy
can do more than just eliminate a second mortgage. Chapter 13 can stop foreclosure
and allow you to keep your home. You can eliminate or reduce unsecured debts such as credit card debts, medical bills and personal loans. You may be able to obtain a discharge of taxes that are more than three years in arrears. Chapter 13 can give you the breathing room you need to rebuild your finances.
At the Bankruptcy Law Offices of Stephen Johnson, we provide complete debt solutions to hard-working people. We want to guide you to a debt-free future.
Free Consultation With An Attorney
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Loan Modification
LOAN MODIFICATION ATTORNEY IN AUBURN, CALIFORNIA
Banks and lenders are increasingly willing to modify existing home loans to meet current market conditions and the financial needs of homeowners.
At Bankruptcy Law Offices of Stephen Johnson, we help homeowners obtain loan modifications, including reductions in the outstanding loan amount or interest rate, an extension of the mortgage period or some combination of these.
We may be able to save you tens of thousands of dollars over the life of your mortgage. Contact Us
to arrange for a free consultation.
Complete Loan Modification Services
Our firm can handle all aspects of your loan modification from start to finish for a flat fee.
We can identify the right department and the decision-maker at the lending company, initiate discussions and negotiate to obtain the most favorable mortgage terms possible. Because a loan modification changes an existing loan and does not create a new mortgage, you can avoid re-financing fees and points. You can avoid filing bankruptcy and get debt relief.
From start to finish, the Bankruptcy Law Offices of Stephen Johnson will work to obtain maximum mortgage relief for you
Why Hire An Attorney?
You can certainly try to negotiate a loan modification yourself, but your chances of success will often be significantly compromised as a result of one's inexperience and unfamiliarity with the process.
Banks and mortgage lenders are still dealing with the financial crisis. They are down-sizing and struggling to develop solutions to their own financial problems. An individual homeowner may not be able to contact the person at the bank who has the authority to negotiate a lower loan. Even if you do contact that person, you may leave money on the table during the negotiation process.
At the Bankruptcy Law Offices of Stephen Johnson, we are experienced in all aspects of loan modifications. We know how to locate the decision-maker at lending institutions. When we call, they are more included to listen to us because of our reputation and experience. As a law firm, they know we are serious about getting maximum results for our clients.
In your case, our attorneys
will work to obtain the best mortgage terms possible. In just a few weeks or months, you can be on your way to a brighter financial future.
Contact A Lawyer Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Loan Modification
LOAN MODIFICATION ATTORNEY IN AUBURN, CALIFORNIA
Banks and lenders are increasingly willing to modify existing home loans to meet current market conditions and the financial needs of homeowners.
At Bankruptcy Law Offices of Stephen Johnson, we help homeowners obtain loan modifications, including reductions in the outstanding loan amount or interest rate, an extension of the mortgage period or some combination of these.
We may be able to save you tens of thousands of dollars over the life of your mortgage. Contact Us
to arrange for a free consultation.
Complete Loan Modification Services
Our firm can handle all aspects of your loan modification from start to finish for a flat fee.
We can identify the right department and the decision-maker at the lending company, initiate discussions and negotiate to obtain the most favorable mortgage terms possible. Because a loan modification changes an existing loan and does not create a new mortgage, you can avoid re-financing fees and points. You can avoid filing bankruptcy and get debt relief.
From start to finish, the Bankruptcy Law Offices of Stephen Johnson will work to obtain maximum mortgage relief for you
Why Hire An Attorney?
You can certainly try to negotiate a loan modification yourself, but your chances of success will often be significantly compromised as a result of one's inexperience and unfamiliarity with the process.
Banks and mortgage lenders are still dealing with the financial crisis. They are down-sizing and struggling to develop solutions to their own financial problems. An individual homeowner may not be able to contact the person at the bank who has the authority to negotiate a lower loan. Even if you do contact that person, you may leave money on the table during the negotiation process.
At the Bankruptcy Law Offices of Stephen Johnson, we are experienced in all aspects of loan modifications. We know how to locate the decision-maker at lending institutions. When we call, they are more included to listen to us because of our reputation and experience. As a law firm, they know we are serious about getting maximum results for our clients.
In your case, our attorneys
will work to obtain the best mortgage terms possible. In just a few weeks or months, you can be on your way to a brighter financial future.
Contact A Lawyer Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Dischargeable Tax Debts
BANKRUPTCY AND TAX DEBT
Filing for bankruptcy can automatically halt the accumulation of interest and penalty fees on past due federal and state income taxes. More importantly, tax debts over three years old can be completely discharged through bankruptcy. If you have past due tax debts and other unmanageable debts, filing for bankruptcy may be your best option for obtaining debt relief.
At the Bankruptcy Law Offices of Stephen Johnson, we are experienced bankruptcy attorneys. We can review your situation and explain your options in a free consultation. By filing for you, we may be able to obtain an immediate stop to tax foreclosures and obtain a discharge of many past due tax debts.
Call (530) 823-3655, or contact us online
to speak with an attorney about your situation.
Experienced Bankruptcy Attorneys
Our firm has been helping people obtain debt relief through Chapter 7 and Chapter 13 Bankruptcy
filings for over 30 years. Many of these cases have included the complete discharge of taxes.
As soon as we file bankruptcy for you, interest and penalties on past due income taxes stop accumulating. We will work to discharge as much tax debt as possible. Any non-dischargeable taxes can be rolled into a repayment plan negotiated directly with the IRS, or repaid through a Chapter 13 plan immediately following your Chapter 7 discharge - giving you the opportunity to rebuild your financial strength.
When discharging tax debt through bankruptcy, timing is critical. Filing for bankruptcy just a few days earlier or later can cost you tens of thousands of dollars in tax debts for a given year - or enable you to obtain a complete discharge of those debts.
Offers-In-Compromise
If you have outstanding tax debts that are not dischargeable through bankruptcy, there may be another option open to you. If a tax authority is convinced it cannot obtain full payment of taxes, it can sometimes be persuaded to discharge a portion of those taxes through an offer-in-compromise.
The Bankruptcy Law Offices of Stephen Johnson
has successfully negotiated numerous offers-in-compromise with the IRS and the California State Franchise Tax Board. A lawyer at our firm can review your situation and recommend the right solution for you.
Contact A Lawyer Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Dischargeable Tax Debts
BANKRUPTCY AND TAX DEBT
Filing for bankruptcy can automatically halt the accumulation of interest and penalty fees on past due federal and state income taxes. More importantly, tax debts over three years old can be completely discharged through bankruptcy. If you have past due tax debts and other unmanageable debts, filing for bankruptcy may be your best option for obtaining debt relief.
At the Bankruptcy Law Offices of Stephen Johnson, we are experienced bankruptcy attorneys. We can review your situation and explain your options in a free consultation. By filing for you, we may be able to obtain an immediate stop to tax foreclosures and obtain a discharge of many past due tax debts.
Call (530) 823-3655, or contact us online
to speak with an attorney about your situation.
Experienced Bankruptcy Attorneys
Our firm has been helping people obtain debt relief through Chapter 7 and Chapter 13 Bankruptcy
filings for over 30 years. Many of these cases have included the complete discharge of taxes.
As soon as we file bankruptcy for you, interest and penalties on past due income taxes stop accumulating. We will work to discharge as much tax debt as possible. Any non-dischargeable taxes can be rolled into a repayment plan negotiated directly with the IRS, or repaid through a Chapter 13 plan immediately following your Chapter 7 discharge - giving you the opportunity to rebuild your financial strength.
When discharging tax debt through bankruptcy, timing is critical. Filing for bankruptcy just a few days earlier or later can cost you tens of thousands of dollars in tax debts for a given year - or enable you to obtain a complete discharge of those debts.
Offers-In-Compromise
If you have outstanding tax debts that are not dischargeable through bankruptcy, there may be another option open to you. If a tax authority is convinced it cannot obtain full payment of taxes, it can sometimes be persuaded to discharge a portion of those taxes through an offer-in-compromise.
The Bankruptcy Law Offices of Stephen Johnson
has successfully negotiated numerous offers-in-compromise with the IRS and the California State Franchise Tax Board. A lawyer at our firm can review your situation and recommend the right solution for you.
Contact A Lawyer Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
What Debts Are Dischargeable?
ELIMINATING AND REDUCING DEBTS THROUGH BANKRUPTCY
The bankruptcy laws were enacted to provide relief to hard-working people who are overwhelmed by unmanageable levels of debt. Some debts can be eliminated while others can be reduced or must remain in place. An experienced attorney can help you make the right decisions about bankruptcy.
At the Bankruptcy Law Offices of Stephen Johnson, we help our clients obtain debt relief and a new financial start through bankruptcy. Our goal in every case is to help our clients to obtain maximum debt relief, while allowing them to keep as many personal assets as possible.
Call (530) 823-3655, or send us an e-mail for more information.
Most Unsecured Debts Can Be Reduced Or Eliminated
A Chapter 7 Bankruptcy
can completely eliminate some types of debts, such as credit card debts, medical bills, personal loans and other unsecured debts. Tax debts older than three years are generally dischargeable. This can provide you with the breathing room you need to rebuild your financial life.
A Chapter 13 Bankruptcy
can eliminate some unsecured debts and greatly reduce other debts. Your remaining debts are rolled into a three- to five-year repayment plan. The extra cash flow you receive can make it that much easier to handle your non-dischargeable debts.
There are many factors to consider when deciding which bankruptcy option is best. The Bankruptcy Law Offices of Stephen Johnson has over 30 years of experience helping people obtain debt relief through bankruptcy. We can review your situation and recommend the right solution for you.
What Debts Are Not Dischargeable?
Except in rare cases, student loan debts, child support obligations and some types of tax debts are not dischargeable in bankruptcy.
If you want to keep your house, you will have to continue to pay your first mortgage, though it may be possible to eliminate a second mortgage. In other cases, our firm may be able to obtain a loan modification
that reduces your primary mortgage, making it much easier to meet your monthly mortgage obligation.
Creative Solutions For Hard-Working People
Our firm's vast experience in the bankruptcy field enables us to suggest the debt relief opportunities available in any situation.
In your case, the Bankruptcy Law Offices of Stephen Johnson will work to obtain debt relief for you.
Contact A Lawyer Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
What Debts Are Dischargeable?
ELIMINATING AND REDUCING DEBTS THROUGH BANKRUPTCY
The bankruptcy laws were enacted to provide relief to hard-working people who are overwhelmed by unmanageable levels of debt. Some debts can be eliminated while others can be reduced or must remain in place. An experienced attorney can help you make the right decisions about bankruptcy.
At the Bankruptcy Law Offices of Stephen Johnson, we help our clients obtain debt relief and a new financial start through bankruptcy. Our goal in every case is to help our clients to obtain maximum debt relief, while allowing them to keep as many personal assets as possible.
Call (530) 823-3655, or send us an e-mail for more information.
Most Unsecured Debts Can Be Reduced Or Eliminated
A Chapter 7 Bankruptcy
can completely eliminate some types of debts, such as credit card debts, medical bills, personal loans and other unsecured debts. Tax debts older than three years are generally dischargeable. This can provide you with the breathing room you need to rebuild your financial life.
A Chapter 13 Bankruptcy
can eliminate some unsecured debts and greatly reduce other debts. Your remaining debts are rolled into a three- to five-year repayment plan. The extra cash flow you receive can make it that much easier to handle your non-dischargeable debts.
There are many factors to consider when deciding which bankruptcy option is best. The Bankruptcy Law Offices of Stephen Johnson has over 30 years of experience helping people obtain debt relief through bankruptcy. We can review your situation and recommend the right solution for you.
What Debts Are Not Dischargeable?
Except in rare cases, student loan debts, child support obligations and some types of tax debts are not dischargeable in bankruptcy.
If you want to keep your house, you will have to continue to pay your first mortgage, though it may be possible to eliminate a second mortgage. In other cases, our firm may be able to obtain a loan modification
that reduces your primary mortgage, making it much easier to meet your monthly mortgage obligation.
Creative Solutions For Hard-Working People
Our firm's vast experience in the bankruptcy field enables us to suggest the debt relief opportunities available in any situation.
In your case, the Bankruptcy Law Offices of Stephen Johnson will work to obtain debt relief for you.
Contact A Lawyer Today
For a free consultation with the Bankruptcy Law Offices of Stephen Johnson in Auburn, including Lincoln, Rocklin, Roseville, Sacramento, Redding, Chico, Colfax, Truckee, Nevada, Yolo, Shasta, Tehama, and Amador, California. Call (530) 823-3655, or send us an e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Myths About Bankruptcy
Myth: Bankruptcy Relief Is No Longer Available
Almost all of the relief formerly available through bankruptcy survives in today's bankruptcy code. It is a little more involved and somewhat more expensive, but it still works. One year review of reform.
Myth: You Can't File Bankruptcy If You Have A Job
The new "means test" is supposed to divert some filers who make more than the median income for households of their size in their state of residence to Chapter 13. The only way to fund a Chapter 13 plan is to HAVE a job. So, this is utterly untrue.
Myth: Medical Bills Can't Be Discharged In Bankruptcy
A variation on this myth is that "you can't discharge credit card debt in bankruptcy." This has the sound of the law-as-described-by-bill-collectors. Almost all unsecured contract debt, like credit cards, personal loans, and medical bills, remain dischargeable in bankruptcy.
Myth: Chapter 13 Plans Require Repayment In Full Of Debt
Chapter 13 plans range from plans that pay general unsecured creditors nothing to plans that pay 100%, with every variation calculable in between. How much you must pay in 13 is driven by the interplay between your disposable income, the value of your non exempt assets, and the total of priority debts you have.
Myth: People Who File Bankruptcy Can't Get Credit For 10 Years
People in Chapter 13 can borrow money during the case; people who've filed Chapter 7 get inundated with credit card offers after they get their discharge. This is not credit at the best rates, but credit is available. The myth probably got its start in the fact that the Fair Credit Reporting Act allows the reporting of a bankruptcy filing for 10 years.
Myth: You Lose Everything You Own In Bankruptcy
Well over 95% of bankruptcy cases filed by individuals are "no asset" cases in which the debtor keeps everything he owns. That's because exemptions provide for assets that the debtor can keep and some assets, like pensions, are beyond the reach of bankruptcy trustees and creditors. Exemptions
Myth: Bankruptcy Represents Personal Or Moral Failure
More than 90% of bankruptcy filings are traceable to job loss; illness; or divorce, factors largely out of anyone's control. Bankruptcy is a safety value to prevent individuals from being buried by debts they can never repay. Look at the profile of the typical filer.
Myth: There Is A Minimum Amount Of Debt Required To File Bankruptcy.
Bankruptcy law does not set any minimum amount of debt necessary to file. If the debt appears to be beyond your ability to pay, you can elect to file bankruptcy if it represents
Myth: Married Couples Must File Together
Spouses may file a joint case; they do not have to file together. If only one spouse files, careful attention is required to understand what property will be treated as property of the bankruptcy estate. More on spouses & bankruptcy.
Myths About Bankruptcy
Myth: Bankruptcy Relief Is No Longer Available
Almost all of the relief formerly available through bankruptcy survives in today's bankruptcy code. It is a little more involved and somewhat more expensive, but it still works. One year review of reform.
Myth: You Can't File Bankruptcy If You Have A Job
The new "means test" is supposed to divert some filers who make more than the median income for households of their size in their state of residence to Chapter 13. The only way to fund a Chapter 13 plan is to HAVE a job. So, this is utterly untrue.
Myth: Medical Bills Can't Be Discharged In Bankruptcy
A variation on this myth is that "you can't discharge credit card debt in bankruptcy." This has the sound of the law-as-described-by-bill-collectors. Almost all unsecured contract debt, like credit cards, personal loans, and medical bills, remain dischargeable in bankruptcy.
Myth: Chapter 13 Plans Require Repayment In Full Of Debt
Chapter 13 plans range from plans that pay general unsecured creditors nothing to plans that pay 100%, with every variation calculable in between. How much you must pay in 13 is driven by the interplay between your disposable income, the value of your non exempt assets, and the total of priority debts you have.
Myth: People Who File Bankruptcy Can't Get Credit For 10 Years
People in Chapter 13 can borrow money during the case; people who've filed Chapter 7 get inundated with credit card offers after they get their discharge. This is not credit at the best rates, but credit is available. The myth probably got its start in the fact that the Fair Credit Reporting Act allows the reporting of a bankruptcy filing for 10 years.
Myth: You Lose Everything You Own In Bankruptcy
Well over 95% of bankruptcy cases filed by individuals are "no asset" cases in which the debtor keeps everything he owns. That's because exemptions provide for assets that the debtor can keep and some assets, like pensions, are beyond the reach of bankruptcy trustees and creditors. Exemptions
Myth: Bankruptcy Represents Personal Or Moral Failure
More than 90% of bankruptcy filings are traceable to job loss; illness; or divorce, factors largely out of anyone's control. Bankruptcy is a safety value to prevent individuals from being buried by debts they can never repay. Look at the profile of the typical filer.
Myth: There Is A Minimum Amount Of Debt Required To File Bankruptcy.
Bankruptcy law does not set any minimum amount of debt necessary to file. If the debt appears to be beyond your ability to pay, you can elect to file bankruptcy if it represents
Myth: Married Couples Must File Together
Spouses may file a joint case; they do not have to file together. If only one spouse files, careful attention is required to understand what property will be treated as property of the bankruptcy estate. More on spouses & bankruptcy.
California Exemption
CALIFORNIA STATE BANKRUPTCY EXEMPTIONS
§ 706.050. Amount Of Earnings Exempt
Except as otherwise provided in this chapter, the amount of earnings of a judgment debtor exempt from the levy of an earnings withholding order shall be that amount that may not be withheld from the judgment debtor's earnings under federal law in Section 1673(a) of Title 15 of the United States Code.
§ 706.051. Earnings Necessary For Support Of Judgment Debtor Or Judgment Debtor's Family
(a) For the purposes of this section, "family of the judgment debtor" includes the spouse or former spouse of the judgment debtor.
(b) Except as provided in subdivision (c), the portion of the judgment debtor's earnings which the judgment debtor proves is necessary for the support of the judgment debtor or the judgment debtor's family supported in whole or in part by the judgment debtor is exempt from levy under this chapter.
(c) The exemption provided in subdivision (b) is not available if any of the following exceptions applies:
(1) The debt was incurred for the common necessaries of life furnished to the judgment debtor or the family of the judgment debtor.
(2) The debt was incurred for personal services rendered by an employee or former employee of the judgment debtor.
(3) The order is a withholding order for support under Section 706.030.
(4) The order is one governed by Article 4 (commencing with Section 706.070) (state tax order).
§ 703.130. Exemptions In Bankruptcy
Pursuant to the authority of paragraph (1) of subsection (b) of Section 522 of Title 11 of the United States Code, the exemptions set forth in subsection (d) of Section 522 of Title 11 of the United States Code (Bankruptcy) are not authorized in this state.
§ 703.140. Election Of Exemptions If Bankruptcy Petition Is Filed
(a) In a case under Title 11 of the United States Code, all of the exemptions provided by this chapter, including the homestead exemption, other than the provisions of subdivision (b) are applicable regardless of whether there is a money judgment against the debtor or whether a money judgment is being enforced by execution sale or any other procedure, but the exemptions provided by subdivision (b) may be elected in lieu of all other exemptions provided by this chapter, as follows:
(1) If a husband and wife are joined in the petition, they jointly may elect to utilize the applicable exemption provisions of this chapter other than the provisions of subdivision (b), or to utilize the applicable exemptions set forth in subdivision (b), but not both.
(2) If the petition is filed individually, and not jointly, for a husband or a wife, the exemptions provided by this chapter other than the provisions of subdivision (b) are applicable, except that, if both the husband and the wife effectively waive in writing the right to claim, during the period the case commenced by filing the petition is pending, the exemptions provided by the applicable exemption provisions of this chapter, other than subdivision (b), in any case commenced by filing a petition for either of them under Title 11 of the United States Code, then they may elect to instead utilize the applicable exemptions set forth in subdivision (b), but not both.
(3) If the petition is filed for an unmarried person, that person may elect to utilize the applicable exemption provisions of this chapter other than subdivision (b), or to utilize the applicable exemptions set forth in subdivision
(b), but not both.
(b) The following exemptions may be elected as provided in subdivision (a):
(1) The debtor's aggregate interest, not to exceed seventeen thousand four hundred twenty-five dollars ($ 17,425) in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.
(2) The debtor's interest, not to exceed two thousand seven hundred seventy-five dollars ($ 2,775) in value, in one motor vehicle.
(3) The debtor's interest, not to exceed four hundred fifty dollars ($ 450) in value in any particular item, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed one thousand one hundred fifty dollars ($ 1,150) in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(5) The debtor's aggregate interest, not to exceed in value nine hundred twenty-five dollars ($ 925) plus any unused amount of the exemption provided under paragraph (1), in any property.
(6) The debtor's aggregate interest, not to exceed one thousand seven hundred fifty dollars ($ 1,750) in value, in any implements, professional books, or tools of the trade of the debtor or the trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value nine thousand three hundred dollars ($ 9,300), in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a dependent of the debtor.
(10) The debtor's right to receive any of the following:
(A) A social security benefit, unemployment compensation, or a local public assistance benefit.
(B) A veterans' benefit.
(C) A disability, illness, or unemployment benefit.
(D) Alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(E) A payment under a stock bonus, pension, profit-sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless all of the following apply:
(i) That plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor's rights under the plan or contract arose.
(ii) The payment is on account of age or length of service.
(iii) That plan or contract does not qualify under Section 401(a), 403(a), 403(b), 408, or 408A of the Internal Revenue Code of 1986.
(11) The debtor's right to receive, or property that is traceable to, any of the following:
(A) An award under a crime victim's reparation law.
(B) A payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(C) A payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of that individual's death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(D) A payment, not to exceed seventeen thousand four hundred twenty-five dollars ($ 17,425), on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent.
(E) A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
§ 704.730. Amount Of Homestead Exemption
(a) The amount of the homestead exemption is one of the following:
(1) Fifty thousand dollars ($ 50,000) unless the judgment debtor or spouse of the judgment debtor who resides in the homestead is a person described in paragraph (2) or (3).
(2) Seventy-five thousand dollars ($ 75,000) if the judgment debtor or spouse of the judgment debtor who resides in the homestead is at the time of the attempted sale of the homestead a member of a family unit, and there is at least one member of the family unit who owns no interest in the homestead or whose only interest in the homestead is a community property interest with the judgment debtor.
(3) One hundred fifty thousand dollars ($ 150,000) if the judgment debtor or spouse of the judgment debtor who resides in the homestead is at the time of the attempted sale of the homestead any one of the following:
(A) A person 65 years of age or older.
(B) A person physically or mentally disabled and as a result of that disability is unable to engage in substantial gainful employment. There is a rebuttable presumption affecting the burden of proof that a person receiving disability insurance benefit payments under Title II or supplemental security income payments under Title XVI of the federal Social Security Act satisfies the requirements of this paragraph as to his or her inability to engage in substantial gainful employment.
(C) A person 55 years of age or older with a gross annual income of not more than fifteen thousand dollars ($ 15,000) or, if the judgment debtor is married, a gross annual income, including the gross annual income of the judgment debtor's spouse, of not more than twenty thousand dollars ($ 20,000) and the sale is an involuntary sale.
(b) Notwithstanding any other provision of this section, the combined homestead exemptions of spouses on the same judgment shall not exceed the amount specified in paragraph (2) or (3), whichever is applicable, of subdivision (a), regardless of whether the spouses are jointly obligated on the judgment and regardless of whether the homestead consists of community or separate property or both. Notwithstanding any other provision of this article, if both spouses are entitled to a homestead exemption, the exemption of proceeds of the homestead shall be apportioned between the spouses on the basis of their proportionate interests in the homestead.
§ 704.730. Amount Of Homestead Exemption
(a) Any combination of the following is exempt in the amount of two thousand three hundred dollars ($ 2,300):
(1) The aggregate equity in motor vehicles.
(2) The proceeds of an execution sale of a motor vehicle.
(3) The proceeds of insurance or other indemnification for the loss, damage, or destruction of a motor vehicle.
(b) Proceeds exempt under subdivision (a) are exempt for a period of 90 days after the time the proceeds are actually received by the judgment debtor.
(c) For the purpose of determining the equity, the fair market value of a motor vehicle shall be determined by reference to used car price guides customarily used by California automobile dealers unless the motor vehicle is not listed in such price guides.
(d) If the judgment debtor has only one motor vehicle and it is sold at an execution sale, the proceeds of the execution sale are exempt in the amount of two thousand three hundred dollars ($ 2,300) without making a claim. The levying officer shall consult and may rely upon the records of the Department of Motor Vehicles in determining whether the judgment debtor has only one motor vehicle. In the case covered by this subdivision, the exemption provided by subdivision (a) is not available.
§ 704.020. Household Furnishings And Personal Effects
(a) Household furnishings, appliances, provisions, wearing apparel, and other personal effects are exempt in the following cases:
(1) If ordinarily and reasonably necessary to, and personally used or procured for use by, the judgment debtor and members of the judgment debtor's family at the judgment debtor's principal place of residence.
(2) Where the judgment debtor and the judgment debtor's spouse live separate and apart, if ordinarily and reasonably necessary to, and personally used or procured for use by, the spouse and members of the spouse's family at the spouse's principal place of residence.
(b) In determining whether an item of property is "ordinarily and reasonably necessary" under subdivision (a), the court shall take into account both of the following:
(1) The extent to which the particular type of item is ordinarily found in a household.
(2) Whether the particular item has extraordinary value as compared to the value of items of the same type found in other households.
(c) If an item of property for which an exemption is claimed pursuant to this section is an item of the type ordinarily found in a household but is determined not to be exempt because the item has extraordinary value as compared to the value of items of the same type found in other households, the proceeds obtained at an execution sale of the item are exempt in the amount determined by the court to be a reasonable amount sufficient to purchase a replacement of ordinary value if the court determines that a replacement is reasonably necessary. Proceeds exempt under this subdivision are exempt for a period of 90 days after the proceeds are actually received by the judgment debtor.
§ 704.030. Materials For Repair Or Improvement Of Residence
Material that in good faith is about to be applied to the repair or improvement of a residence is exempt if the equity in the material does not exceed two thousand four hundred twenty-five dollars ($ 2,425) in the following cases:
(a) If purchased in good faith for use in the repair or improvement of the judgment debtor's principal place of residence.
(b) Where the judgment debtor and the judgment debtor's spouse live separate and apart, if purchased in good faith for use in the repair or improvement of the spouse's principal place of residence.
§ 704.040. Jewelry, Heirlooms, Works Of Art
Jewelry, heirlooms, and works of art are exempt to the extent that the aggregate equity therein does not exceed six thousand seventy-five dollars ($ 6,075).
§ 704.050. Health Aids
Health aids reasonably necessary to enable the judgment debtor or the spouse or a dependent of the judgment debtor to work or sustain health, and prosthetic and orthopedic appliances, are exempt.
§ 704.060. Personal Property Used In Trade, Business, Or Profession
(a) Tools, implements, instruments, materials, uniforms, furnishings, books, equipment, one commercial motor vehicle, one vessel, and other personal property are exempt to the extent that the aggregate equity therein does not exceed:
(1) Six thousand seventy-five dollars ($ 6,075), if reasonably necessary to and actually used by the judgment debtor in the exercise of the trade, business, or profession by which the judgment debtor earns a livelihood.
(2) Six thousand seventy-five dollars ($ 6,075), if reasonably necessary to and actually used by the spouse of the judgment debtor in the exercise of the trade, business, or profession by which the spouse earns a livelihood.
(3) Twice the amount of the exemption provided in paragraph (1), if reasonably necessary to and actually used by the judgment debtor and by the spouse of the judgment debtor in the exercise of the same trade, business, or profession by which both earn a livelihood. In the case covered by this paragraph, the exemptions provided in paragraphs (1) and (2) are not available.
(b) If property described in subdivision (a) is sold at an execution sale, or if it has been lost, damaged, or destroyed, the proceeds of the execution sale or of insurance or other indemnification are exempt for a period of 90 days after the proceeds are actually received by the judgment debtor or the judgment debtor's spouse. The amount exempt under this subdivision is the amount specified in subdivision (a) that applies to the particular case less the aggregate equity of any other property to which the exemption provided by subdivision (a) for the particular case has been applied.
(c) Notwithstanding subdivision (a), a motor vehicle is not exempt under subdivision (a) if there is a motor vehicle exempt under Section 704.010 which is reasonably adequate for use in the trade, business, or profession for which the exemption is claimed under this section.
(d) Notwithstanding subdivisions (a) and (b):
(1) The amount of the exemption for a commercial motor vehicle under paragraph (1) or (2) of subdivision (a) is limited to four thousand eight hundred fifty dollars ($ 4,850).
(2) The amount of the exemption for a commercial motor vehicle under paragraph (3) of subdivision (a) is limited to twice the amount of the exemption provided in paragraph (1) of this subdivision.
§ 704.070. Paid Earnings
(a) As used in this section:
(1) "Earnings withholding order" means an earnings withholding order under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).
(2) "Paid earnings" means earnings as defined in Section 706.011 that were paid to the employee during the 30-day period ending on the date of the levy. For the purposes of this paragraph, where earnings that have been paid to the employee are sought to be subjected to the enforcement of a money judgment other than by a levy, the date of levy is deemed to be the date the earnings were otherwise subjected to the enforcement of the judgment.
(3) " Earnings assignment order for support" means an earnings assignment order for support as defined in Section 706.011.
(b) Paid earnings that can be traced into deposit accounts or in the form of cash or its equivalent as provided in Section 703.080 are exempt in the following amounts:
(1) All of the paid earnings are exempt if prior to payment to the employee they were subject to an earnings withholding order or an earnings assignment order for support
(2) Seventy-five percent of the paid earnings that are levied upon or otherwise sought to be subjected to the enforcement of a money judgment are exempt if prior to payment to the employee they were not subject to an earnings withholding order or an earnings assignment order for support.
§ 704.080. Deposit Account In Which Public Benefits Or Social Security Benefits Are Directly Deposited
(a) For the purposes of this section:
(1) "Deposit account" means a deposit account in which payments of public benefits or social security benefits are directly deposited by the government or its agent.
(2) "Social security benefits" means payments authorized by the Social Security Administration for regular retirement and survivors' benefits, supplemental security income benefits, coal miners' health benefits, and disability insurance benefits. "Public benefits" means aid payments authorized pursuant to subdivision (a) of Section 11450 of the Welfare and Institutions Code, payments for supportive services as described in Section 11323.2 of the Welfare and Institutions Code, and general assistance payments made pursuant to Section 17000.5 of the Welfare and Institutions Code.
(b) A deposit account is exempt without making a claim in the following amount:
(1) One thousand two hundred twenty-five dollars ($ 1,225) where one depositor is the designated payee of the directly deposited public benefits payments.
(2) Two thousand four hundred twenty-five dollars ($ 2,425) where one depositor is the designated payee of directly deposited social security payments.
(3)One thousand eight hundred twenty-five dollars ($ 1,825) where two or more depositors are the designated payees of the directly deposited public benefits payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (1) applies.
(4) Three thousand six hundred fifty dollars ($ 3,650) where two or more depositors are the designated payees of directly deposited social security payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (2) applies.
(c) The amount of a deposit account that exceeds the exemption provided in subdivision (b) is exempt to the extent that it consists of payments of public benefits or social security benefits.
(d) Notwithstanding Article 5 (commencing with Section 701.010) of Chapter 3, when a deposit account is levied upon or otherwise sought to be subjected to the enforcement of a money judgment, the financial institution that holds the deposit account shall either place the amount that exceeds the exemption provided in subdivision (b) in a suspense account or otherwise prohibit withdrawal of that amount pending notification of the failure of the judgment creditor to file the affidavit required by this section or the judicial determination of the exempt status of the amount. Within 10 business days after the levy, the financial institution shall provide the levying officer with a written notice stating (1) that the deposit account is one in which payments of public benefits or social security benefits are directly deposited by the government or its agent and (2) the balance of the deposit account that exceeds the exemption provided by subdivision (b). Promptly upon receipt of the notice, the levying officer shall serve the notice on the judgment creditor. Service shall be made personally or by mail.
(e) Notwithstanding the procedure prescribed in Article 2 (commencing with Section 703.510), whether there is an amount exempt under subdivision (c) shall be determined as follows:
(1) Within five days after the levying officer serves the notice on the judgment creditor under subdivision (d), a judgment creditor who desires to claim that the amount is not exempt shall file with the court an affidavit alleging that the amount is not exempt and file a copy with the levying officer. The affidavit shall be in the form of the notice of opposition provided by Section 703.560, and a hearing shall be set and held, and notice given, as provided by Sections 703.570 and 703.580. For the purpose of this subdivision, the "notice of opposition to the claim of exemption" in Sections 703.570 and 703.580 means the affidavit under this subdivision.
(2) If the judgment creditor does not file the affidavit with the levying officer and give notice of hearing pursuant to Section 703.570 within the time provided in paragraph (1), the levying officer shall release the deposit account and shall notify the financial institution.
(3) The affidavit constitutes the pleading of the judgment creditor, subject to the power of the court to permit amendments in the interest of justice. The affidavit is deemed controverted and no counter affidavit is required.
(4) At a hearing under this subdivision, the judgment debtor has the burden of proving that the excess amount is exempt.
(5) At the conclusion of the hearing, the court by order shall determine whether or not the amount of the deposit account is exempt pursuant to subdivision (c) in whole or in part and shall make an appropriate order for its prompt disposition. No findings are required in a proceeding under this subdivision.
(6) Upon determining the exemption claim for the deposit account under subdivision (c), the court shall immediately transmit a certified copy of the order of the court to the financial institution and to the levying officer. If the order determines that all or part of the excess is exempt under subdivision (c), with respect to the amount of the excess which is exempt, the financial institution shall transfer the exempt excess from the suspense account or otherwise release any restrictions on its withdrawal by the judgment debtor. The transfer or release shall be effected within three business days of the receipt of the certified copy of the court order by the financial institution.
(f) If the judgment debtor claims that a portion of the amount is exempt other than pursuant to subdivision (c), the claim of exemption shall be made pursuant to Article 2 (commencing with Section 703.510). If the judgment debtor also opposes the judgment creditor's affidavit regarding an amount exempt pursuant to subdivision (c), both exemptions shall be determined at the same hearing, provided the judgment debtor has complied with Article 2 (commencing with Section 703.510).
§ 704.090. Inmate's Trust Account
(a) The funds of a judgment debtor confined in a prison or facility under the jurisdiction of the Department of Corrections or the Department of the Youth Authority or confined in any county or city jail, road camp, industrial farm, or other local correctional facility, held in trust for or to the credit of the judgment debtor, in an inmate's trust account or similar account by the state, county, or city, or any agency thereof, are exempt without making a claim in the amount of one thousand two hundred twenty-five dollars ($ 1,225). If the judgment debtor is married, each spouse is entitled to a separate exemption under this section or the spouses may combine their exemptions.
(b) Notwithstanding subdivision (a), if the judgment is for a restitution fine or order imposed pursuant to subdivision (a) of Section 13967 of the Government Code, as operative on or before September 28, 1994, or Section 1203.04 of the Penal Code, as operative on or before August 2, 1995, or Section 1202.4 of the Penal Code, the funds held in trust for, or to the credit of, a judgment debtor described in subdivision (a) are exempt in the amount of three hundred dollars ($ 300) without making a claim. The exemption provided in this subdivision is not subject to adjustment under Section 703.150.
§ 704.100. Life Insurance Policies
(a) Unmatured life insurance policies (including endowment and annuity policies), but not the loan value of such policies, are exempt without making a claim.
(b) The aggregate loan value of unmatured life insurance policies (including endowment and annuity policies) is subject to the enforcement of a money judgment but is exempt in the amount of nine thousand seven hundred dollars ($ 9,700). If the judgment debtor is married, each spouse is entitled to a separate exemption under this subdivision, and the exemptions of the spouses may be combined, regardless of whether the policies belong to either or both spouses and regardless of whether the spouse of the judgment debtor is also a judgment debtor under the judgment. The exemption provided by this subdivision shall be first applied to policies other than the policy before the court and then, if the exemption is not exhausted, to the policy before the court.
(c) Benefits from matured life insurance policies (including endowment and annuity policies) are exempt to the extent reasonably necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.
§ 704.110. Public Retirement And Related Benefits And Contributions
(a) As used in this section:
(1) "Public entity" means the state, or a city, city and county, county, or other political subdivision of the state, or a public trust, public corporation, or public board, or the governing body of any of them, but does not include the United States except where expressly so provided.
(2) "Public retirement benefit" means a pension or an annuity, or a retirement, disability, death, or other benefit, paid or payable by a public retirement system.
(3) "Public retirement system" means a system established pursuant to statute by a public entity for retirement, annuity, or pension purposes or payment of disability or death benefits.
(b) All amounts held, controlled, or in process of distribution by a public entity derived from contributions by the public entity or by an officer or employee of the public entity for public retirement benefit purposes, and all rights and benefits accrued or accruing to any person under a public retirement system, are exempt without making a claim.
(c) Notwithstanding subdivision (b), where an amount described in subdivision (b) becomes payable to a person and is sought to be applied to the satisfaction of a judgment for child, family, or spousal support against that person:
(1) Except as provided in paragraphs (2) and (3), the amount is exempt only to the extent that the court determines under subdivision (c) of Section 703.070.
(2) If the amount sought to be applied to the satisfaction of the judgment is payable periodically, the amount payable is subject to an earnings assignment order for support as defined in Section 706.011, or any other applicable enforcement procedure, but the amount to be withheld pursuant to the assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052. The paying entity may deduct from the payment being made to the judgment debtor, for each payment made pursuant to an earnings assignment order under this paragraph, an amount reflecting the actual cost of administration caused by the assignment order of up to two dollars ($ 2) for each payment.
(3) If the intercept procedure provided for in Section 11357 of the Welfare and Institutions Code is used for benefits that are payable periodically, the amount to be withheld shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052.
(4) If the amount sought to be applied to the satisfaction of the judgment is payable as a lump-sum distribution, the amount payable is subject to the intercept procedure provided in Section 11357 of the Welfare and Institutions Code or any other applicable enforcement procedure.
(d) All amounts received by any person, a resident of the state, as a public retirement benefit or as a return of contributions and interest thereon from the United States or a public entity or from a public retirement system are exempt.
§ 704.113. Public Employee Vacation Credits
(a) As used in this section, "vacation credits" means vacation credits accumulated by a state employee pursuant to Section 18050 of the Government Code or by any other public employee pursuant to any law for the accumulation of vacation credits applicable to the employee.
(b) All vacation credits are exempt without making a claim.
(c) Amounts paid periodically or as a lump sum representing vacation credits are subject to any earnings withholding order served under Chapter 5 (commencing with Section 706.010) or any earnings assignment order for support as defined in Section 706.011 and are exempt to the same extent as earnings of a judgment debtor.
§ 704.115. Private Retirement And Related Benefits And Contributions
(a) As used in this section, "private retirement plan" means:
(1) Private retirement plans, including, but not limited to, union retirement plans.
(2) Profit-sharing plans designed and used for retirement purposes.
(3) Self-employed retirement plans and individual retirement annuities or accounts provided for in the Internal Revenue Code of 1986, as amended, including individual retirement accounts qualified under Section 408 or 408A of that code, to the extent the amounts held in the plans, annuities, or accounts do not exceed the maximum amounts exempt from federal income taxation under that code.
(b) All amounts held, controlled, or in process of distribution by a private retirement plan, for the payment of benefits as an annuity, pension, retirement allowance, disability payment, or death benefit from a private retirement plan are exempt.
(c) Notwithstanding subdivision (b), where an amount described in subdivision (b) becomes payable to a person and is sought to be applied to the satisfaction of a judgment for child, family, or spousal support against that person:
(1) Except as provided in paragraph (2), the amount is exempt only to the extent that the court determines under subdivision (c) of Section 703.070.
(2) If the amount sought to be applied to the satisfaction of the judgment is payable periodically, the amount payable is subject to an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure, but the amount to be withheld pursuant to the assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052.
(d) After payment, the amounts described in subdivision (b) and all contributions and interest thereon returned to any member of a private retirement plan are exempt.
(e) Notwithstanding subdivisions (b) and (d), except as provided in subdivision (f), the amounts described in paragraph (3) of subdivision (a) are exempt only to the extent necessary to provide for the support of the judgment debtor when the judgment debtor retires and for the support of the spouse and dependents of the judgment debtor, taking into account all resources that are likely to be available for the support of the judgment debtor when the judgment debtor retires. In determining the amount to be exempt under this subdivision, the court shall allow the judgment debtor such additional amount as is necessary to pay any federal and state income taxes payable as a result of the applying of an amount described in paragraph (3) of subdivision (a) to the satisfaction of the money judgment.
(f) Where the amounts described in paragraph (3) of subdivision (a) are payable periodically, the amount of the periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010)(Wage Garnishment Law). To the extent a lump-sum distribution from an individual retirement account is treated differently from a periodic distribution under this subdivision, any lump-sum distribution from an account qualified under Section 408A of the Internal Revenue Code shall be treated the same as a lump-sum distribution from an account qualified under Section 408 of the Internal Revenue Code for purposes of determining whether any of that payment may be applied to the satisfaction of a money judgment.
§ 704.120. Unemployment Benefits And Contributions; Strike Benefits
(a) Contributions by workers payable to the Unemployment Compensation Disability Fund and by employers payable to the Unemployment Fund are exempt without making a claim.
(b) Before payment, amounts held for payment of the following benefits are exempt without making a claim:
(1) Benefits payable under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.
(2) Incentives payable under Division 2 (commencing with Section 5000) of the Unemployment Insurance Code.
(3) Benefits payable under an employer's plan or system to supplement unemployment compensation benefits of the employees generally or for a class or group of employees.
(4) Unemployment benefits payable by a fraternal organization to its bona fide members.
(5) Benefits payable by a union due to a labor dispute.
(c) After payment, the benefits described in subdivision (b) are exempt.
(d) During the payment of benefits described in paragraph (1) of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, through the appropriate local child support agency, seek to apply the benefit payment to satisfy the judgment as provided by Section 17518 of the Family Code.
(e) During the payment of benefits described in paragraphs (2) to (5), inclusive, of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the benefit payments to satisfy the judgment by an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure. If the benefit is payable periodically, the amount to be withheld pursuant to the assignment order or other procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest whole dollar. Otherwise the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an assignment order under this subdivision an amount reflecting the actual cost of administration caused by the assignment order up to two dollars ($ 2) for each payment.
§ 704.130. Disability And Health Benefits
(a) Before payment, benefits from a disability or health insurance policy or program are exempt without making a claim. After payment, the benefits are exempt.
(b) Subdivision (a) does not apply to benefits that are paid or payable to cover the cost of health care if the judgment creditor is a provider of health care whose claim is the basis on which the benefits are paid or payable.
(c) During the payment of disability benefits described in subdivision (a) to a judgment debtor under a support judgment, the judgment creditor or local child support agency may seek to apply the benefit payments to satisfy the judgment by an earnings assignment order for support, as defined in Section 706.011, or any other applicable enforcement procedure, but the amount to be withheld pursuant to the earnings assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings assignment order for support under Section 706.052.
§ 704.140. Damages For Personal Injury
(a) Except as provided in Article 5 (commencing with Section 708.410) of Chapter 6, a cause of action for personal injury is exempt without making a claim.
(b) Except as provided in subdivisions (c) and (d), an award of damages or a settlement arising out of personal injury is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.
(c) Subdivision (b) does not apply if the judgment creditor is a provider of health care whose claim is based on the providing of health care for the personal injury for which the award or settlement was made.
(d) Where an award of damages or a settlement arising out of personal injury is payable periodically, the amount of such periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).
§ 704.150. Damages For Wrongful Death
(a) Except as provided in Article 5 (commencing with Section 708.410) of Chapter 6, a cause of action for wrongful death is exempt without making a claim.
(b) Except as provided in subdivision (c), an award of damages or a settlement arising out of the wrongful death of the judgment debtor's spouse or a person on whom the judgment debtor or the judgment debtor's spouse was dependent is exempt to the extent reasonably necessary for support of the judgment debtor and the spouse and dependents of the judgment debtor.
(c) Where an award of damages or a settlement arising out of the wrongful death of the judgment debtor's spouse or a person on whom the judgment debtor or the judgment debtor's spouse was dependent is payable periodically, the amount of such a periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).
§ 704.160. Workers' Compensation; Exceptions
(a) Except as provided by Chapter 1 (commencing with Section 4900) of Part 3 of Division 4 of the Labor Code, before payment, a claim for workers' compensation or workers' compensation awarded or adjudged is exempt without making a claim. Except as specified in subdivision (b), after payment, the award is exempt.
(b) Notwithstanding any other provision of law, during the payment of workers' compensation temporary disability benefits described in subdivision (a) to a support judgment debtor, the support judgment creditor may, through the appropriate local child support agency, seek to apply the workers' compensation temporary disability benefit payment to satisfy the support judgment as provided by Section 17404 of the Family Code.
(c) Notwithstanding any other provision of law, during the payment of workers' compensation temporary disability benefits described in subdivision (a) to a support judgment debtor under a support judgment, including a judgment for reimbursement of public assistance, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the temporary disability benefit payments to satisfy the support judgment by an earnings assignment order for support, as defined in Section 5208 of the Family Code, or any other applicable enforcement procedure. The amount to be withheld pursuant to the earnings assignment order for support or other enforcement procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest dollar. Otherwise, the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an order assigning earnings under this subdivision an amount reflecting the actual cost of administration of this assignment, up to two dollars ($ 2) for each payment.
(d) Unless the provision or context otherwise requires, the following definitions govern the construction of this section.
(1) "Judgment debtor" or "support judgment debtor" means a person who is owing a duty of support.
(2) "Judgment creditor" or "support judgment creditor" means the person to whom support has been ordered to be paid.
(3) "Support" refers to an obligation owing on behalf of a child, spouse, or family; or an amount owing pursuant to Section 17402 of the Family Code. It also includes past due support or arrearage when it exists.
§ 704.170. Aid Provided To Needy Persons
Before payment, aid provided pursuant to Division 9 (commencing with Section 10000) of the Welfare and Institutions Code or similar aid provided by a charitable organization or a fraternal benefit society as defined in Section 10990 of the Insurance Code, is exempt without making a claim. After payment, the aid is exempt.
§ 704.180. Relocation Benefits
Before payment, relocation benefits for displacement from a dwelling which are to be paid pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code or the federal "Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970" (42 U.S.C. Sec. 4601 et seq.), as amended, are exempt without making a claim. After payment, the benefits are exempt.
§ 704.190. Financial Aid Provided To Student By Educational Institution
(a) As used in this section, "institution of higher education" means "institution of higher education" as defined in Section 1141(a) of Title 20 of the United States Code, as amended.
(b) Before payment, financial aid for expenses while attending school provided to a student by an institution of higher education is exempt without making a claim. After payment, the aid is exempt.
§ 704.200. Cemetery Plot
(a) As used in this section:
(1) "Cemetery" has the meaning provided by Section 7003 of the Health and Safety Code.
(2) "Family plot" is a plot that satisfies the requirements of Section 8650 of the Health and Safety Code.
(3) "Plot" has the meaning provided by Section 7022 of the Health and Safety Code.
(b) A family plot is exempt without making a claim.
(c) Except as provided in subdivision (d), a cemetery plot for the judgment debtor and the spouse of the judgment debtor is exempt.
(d) Land held for the purpose of sale or disposition as cemetery plots or otherwise is not exempt.
California Exemption
CALIFORNIA STATE BANKRUPTCY EXEMPTIONS
§ 706.050. Amount Of Earnings Exempt
Except as otherwise provided in this chapter, the amount of earnings of a judgment debtor exempt from the levy of an earnings withholding order shall be that amount that may not be withheld from the judgment debtor's earnings under federal law in Section 1673(a) of Title 15 of the United States Code.
§ 706.051. Earnings Necessary For Support Of Judgment Debtor Or Judgment Debtor's Family
(a) For the purposes of this section, "family of the judgment debtor" includes the spouse or former spouse of the judgment debtor.
(b) Except as provided in subdivision (c), the portion of the judgment debtor's earnings which the judgment debtor proves is necessary for the support of the judgment debtor or the judgment debtor's family supported in whole or in part by the judgment debtor is exempt from levy under this chapter.
(c) The exemption provided in subdivision (b) is not available if any of the following exceptions applies:
(1) The debt was incurred for the common necessaries of life furnished to the judgment debtor or the family of the judgment debtor.
(2) The debt was incurred for personal services rendered by an employee or former employee of the judgment debtor.
(3) The order is a withholding order for support under Section 706.030.
(4) The order is one governed by Article 4 (commencing with Section 706.070) (state tax order).
§ 703.130. Exemptions In Bankruptcy
Pursuant to the authority of paragraph (1) of subsection (b) of Section 522 of Title 11 of the United States Code, the exemptions set forth in subsection (d) of Section 522 of Title 11 of the United States Code (Bankruptcy) are not authorized in this state.
§ 703.140. Election Of Exemptions If Bankruptcy Petition Is Filed
(a) In a case under Title 11 of the United States Code, all of the exemptions provided by this chapter, including the homestead exemption, other than the provisions of subdivision (b) are applicable regardless of whether there is a money judgment against the debtor or whether a money judgment is being enforced by execution sale or any other procedure, but the exemptions provided by subdivision (b) may be elected in lieu of all other exemptions provided by this chapter, as follows:
(1) If a husband and wife are joined in the petition, they jointly may elect to utilize the applicable exemption provisions of this chapter other than the provisions of subdivision (b), or to utilize the applicable exemptions set forth in subdivision (b), but not both.
(2) If the petition is filed individually, and not jointly, for a husband or a wife, the exemptions provided by this chapter other than the provisions of subdivision (b) are applicable, except that, if both the husband and the wife effectively waive in writing the right to claim, during the period the case commenced by filing the petition is pending, the exemptions provided by the applicable exemption provisions of this chapter, other than subdivision (b), in any case commenced by filing a petition for either of them under Title 11 of the United States Code, then they may elect to instead utilize the applicable exemptions set forth in subdivision (b), but not both.
(3) If the petition is filed for an unmarried person, that person may elect to utilize the applicable exemption provisions of this chapter other than subdivision (b), or to utilize the applicable exemptions set forth in subdivision
(b), but not both.
(b) The following exemptions may be elected as provided in subdivision (a):
(1) The debtor's aggregate interest, not to exceed seventeen thousand four hundred twenty-five dollars ($ 17,425) in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.
(2) The debtor's interest, not to exceed two thousand seven hundred seventy-five dollars ($ 2,775) in value, in one motor vehicle.
(3) The debtor's interest, not to exceed four hundred fifty dollars ($ 450) in value in any particular item, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed one thousand one hundred fifty dollars ($ 1,150) in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(5) The debtor's aggregate interest, not to exceed in value nine hundred twenty-five dollars ($ 925) plus any unused amount of the exemption provided under paragraph (1), in any property.
(6) The debtor's aggregate interest, not to exceed one thousand seven hundred fifty dollars ($ 1,750) in value, in any implements, professional books, or tools of the trade of the debtor or the trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value nine thousand three hundred dollars ($ 9,300), in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a dependent of the debtor.
(10) The debtor's right to receive any of the following:
(A) A social security benefit, unemployment compensation, or a local public assistance benefit.
(B) A veterans' benefit.
(C) A disability, illness, or unemployment benefit.
(D) Alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(E) A payment under a stock bonus, pension, profit-sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless all of the following apply:
(i) That plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor's rights under the plan or contract arose.
(ii) The payment is on account of age or length of service.
(iii) That plan or contract does not qualify under Section 401(a), 403(a), 403(b), 408, or 408A of the Internal Revenue Code of 1986.
(11) The debtor's right to receive, or property that is traceable to, any of the following:
(A) An award under a crime victim's reparation law.
(B) A payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(C) A payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of that individual's death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(D) A payment, not to exceed seventeen thousand four hundred twenty-five dollars ($ 17,425), on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent.
(E) A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
§ 704.730. Amount Of Homestead Exemption
(a) The amount of the homestead exemption is one of the following:
(1) Fifty thousand dollars ($ 50,000) unless the judgment debtor or spouse of the judgment debtor who resides in the homestead is a person described in paragraph (2) or (3).
(2) Seventy-five thousand dollars ($ 75,000) if the judgment debtor or spouse of the judgment debtor who resides in the homestead is at the time of the attempted sale of the homestead a member of a family unit, and there is at least one member of the family unit who owns no interest in the homestead or whose only interest in the homestead is a community property interest with the judgment debtor.
(3) One hundred fifty thousand dollars ($ 150,000) if the judgment debtor or spouse of the judgment debtor who resides in the homestead is at the time of the attempted sale of the homestead any one of the following:
(A) A person 65 years of age or older.
(B) A person physically or mentally disabled and as a result of that disability is unable to engage in substantial gainful employment. There is a rebuttable presumption affecting the burden of proof that a person receiving disability insurance benefit payments under Title II or supplemental security income payments under Title XVI of the federal Social Security Act satisfies the requirements of this paragraph as to his or her inability to engage in substantial gainful employment.
(C) A person 55 years of age or older with a gross annual income of not more than fifteen thousand dollars ($ 15,000) or, if the judgment debtor is married, a gross annual income, including the gross annual income of the judgment debtor's spouse, of not more than twenty thousand dollars ($ 20,000) and the sale is an involuntary sale.
(b) Notwithstanding any other provision of this section, the combined homestead exemptions of spouses on the same judgment shall not exceed the amount specified in paragraph (2) or (3), whichever is applicable, of subdivision (a), regardless of whether the spouses are jointly obligated on the judgment and regardless of whether the homestead consists of community or separate property or both. Notwithstanding any other provision of this article, if both spouses are entitled to a homestead exemption, the exemption of proceeds of the homestead shall be apportioned between the spouses on the basis of their proportionate interests in the homestead.
§ 704.730. Amount Of Homestead Exemption
(a) Any combination of the following is exempt in the amount of two thousand three hundred dollars ($ 2,300):
(1) The aggregate equity in motor vehicles.
(2) The proceeds of an execution sale of a motor vehicle.
(3) The proceeds of insurance or other indemnification for the loss, damage, or destruction of a motor vehicle.
(b) Proceeds exempt under subdivision (a) are exempt for a period of 90 days after the time the proceeds are actually received by the judgment debtor.
(c) For the purpose of determining the equity, the fair market value of a motor vehicle shall be determined by reference to used car price guides customarily used by California automobile dealers unless the motor vehicle is not listed in such price guides.
(d) If the judgment debtor has only one motor vehicle and it is sold at an execution sale, the proceeds of the execution sale are exempt in the amount of two thousand three hundred dollars ($ 2,300) without making a claim. The levying officer shall consult and may rely upon the records of the Department of Motor Vehicles in determining whether the judgment debtor has only one motor vehicle. In the case covered by this subdivision, the exemption provided by subdivision (a) is not available.
§ 704.020. Household Furnishings And Personal Effects
(a) Household furnishings, appliances, provisions, wearing apparel, and other personal effects are exempt in the following cases:
(1) If ordinarily and reasonably necessary to, and personally used or procured for use by, the judgment debtor and members of the judgment debtor's family at the judgment debtor's principal place of residence.
(2) Where the judgment debtor and the judgment debtor's spouse live separate and apart, if ordinarily and reasonably necessary to, and personally used or procured for use by, the spouse and members of the spouse's family at the spouse's principal place of residence.
(b) In determining whether an item of property is "ordinarily and reasonably necessary" under subdivision (a), the court shall take into account both of the following:
(1) The extent to which the particular type of item is ordinarily found in a household.
(2) Whether the particular item has extraordinary value as compared to the value of items of the same type found in other households.
(c) If an item of property for which an exemption is claimed pursuant to this section is an item of the type ordinarily found in a household but is determined not to be exempt because the item has extraordinary value as compared to the value of items of the same type found in other households, the proceeds obtained at an execution sale of the item are exempt in the amount determined by the court to be a reasonable amount sufficient to purchase a replacement of ordinary value if the court determines that a replacement is reasonably necessary. Proceeds exempt under this subdivision are exempt for a period of 90 days after the proceeds are actually received by the judgment debtor.
§ 704.030. Materials For Repair Or Improvement Of Residence
Material that in good faith is about to be applied to the repair or improvement of a residence is exempt if the equity in the material does not exceed two thousand four hundred twenty-five dollars ($ 2,425) in the following cases:
(a) If purchased in good faith for use in the repair or improvement of the judgment debtor's principal place of residence.
(b) Where the judgment debtor and the judgment debtor's spouse live separate and apart, if purchased in good faith for use in the repair or improvement of the spouse's principal place of residence.
§ 704.040. Jewelry, Heirlooms, Works Of Art
Jewelry, heirlooms, and works of art are exempt to the extent that the aggregate equity therein does not exceed six thousand seventy-five dollars ($ 6,075).
§ 704.050. Health Aids
Health aids reasonably necessary to enable the judgment debtor or the spouse or a dependent of the judgment debtor to work or sustain health, and prosthetic and orthopedic appliances, are exempt.
§ 704.060. Personal Property Used In Trade, Business, Or Profession
(a) Tools, implements, instruments, materials, uniforms, furnishings, books, equipment, one commercial motor vehicle, one vessel, and other personal property are exempt to the extent that the aggregate equity therein does not exceed:
(1) Six thousand seventy-five dollars ($ 6,075), if reasonably necessary to and actually used by the judgment debtor in the exercise of the trade, business, or profession by which the judgment debtor earns a livelihood.
(2) Six thousand seventy-five dollars ($ 6,075), if reasonably necessary to and actually used by the spouse of the judgment debtor in the exercise of the trade, business, or profession by which the spouse earns a livelihood.
(3) Twice the amount of the exemption provided in paragraph (1), if reasonably necessary to and actually used by the judgment debtor and by the spouse of the judgment debtor in the exercise of the same trade, business, or profession by which both earn a livelihood. In the case covered by this paragraph, the exemptions provided in paragraphs (1) and (2) are not available.
(b) If property described in subdivision (a) is sold at an execution sale, or if it has been lost, damaged, or destroyed, the proceeds of the execution sale or of insurance or other indemnification are exempt for a period of 90 days after the proceeds are actually received by the judgment debtor or the judgment debtor's spouse. The amount exempt under this subdivision is the amount specified in subdivision (a) that applies to the particular case less the aggregate equity of any other property to which the exemption provided by subdivision (a) for the particular case has been applied.
(c) Notwithstanding subdivision (a), a motor vehicle is not exempt under subdivision (a) if there is a motor vehicle exempt under Section 704.010 which is reasonably adequate for use in the trade, business, or profession for which the exemption is claimed under this section.
(d) Notwithstanding subdivisions (a) and (b):
(1) The amount of the exemption for a commercial motor vehicle under paragraph (1) or (2) of subdivision (a) is limited to four thousand eight hundred fifty dollars ($ 4,850).
(2) The amount of the exemption for a commercial motor vehicle under paragraph (3) of subdivision (a) is limited to twice the amount of the exemption provided in paragraph (1) of this subdivision.
§ 704.070. Paid Earnings
(a) As used in this section:
(1) "Earnings withholding order" means an earnings withholding order under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).
(2) "Paid earnings" means earnings as defined in Section 706.011 that were paid to the employee during the 30-day period ending on the date of the levy. For the purposes of this paragraph, where earnings that have been paid to the employee are sought to be subjected to the enforcement of a money judgment other than by a levy, the date of levy is deemed to be the date the earnings were otherwise subjected to the enforcement of the judgment.
(3) " Earnings assignment order for support" means an earnings assignment order for support as defined in Section 706.011.
(b) Paid earnings that can be traced into deposit accounts or in the form of cash or its equivalent as provided in Section 703.080 are exempt in the following amounts:
(1) All of the paid earnings are exempt if prior to payment to the employee they were subject to an earnings withholding order or an earnings assignment order for support
(2) Seventy-five percent of the paid earnings that are levied upon or otherwise sought to be subjected to the enforcement of a money judgment are exempt if prior to payment to the employee they were not subject to an earnings withholding order or an earnings assignment order for support.
§ 704.080. Deposit Account In Which Public Benefits Or Social Security Benefits Are Directly Deposited
(a) For the purposes of this section:
(1) "Deposit account" means a deposit account in which payments of public benefits or social security benefits are directly deposited by the government or its agent.
(2) "Social security benefits" means payments authorized by the Social Security Administration for regular retirement and survivors' benefits, supplemental security income benefits, coal miners' health benefits, and disability insurance benefits. "Public benefits" means aid payments authorized pursuant to subdivision (a) of Section 11450 of the Welfare and Institutions Code, payments for supportive services as described in Section 11323.2 of the Welfare and Institutions Code, and general assistance payments made pursuant to Section 17000.5 of the Welfare and Institutions Code.
(b) A deposit account is exempt without making a claim in the following amount:
(1) One thousand two hundred twenty-five dollars ($ 1,225) where one depositor is the designated payee of the directly deposited public benefits payments.
(2) Two thousand four hundred twenty-five dollars ($ 2,425) where one depositor is the designated payee of directly deposited social security payments.
(3)One thousand eight hundred twenty-five dollars ($ 1,825) where two or more depositors are the designated payees of the directly deposited public benefits payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (1) applies.
(4) Three thousand six hundred fifty dollars ($ 3,650) where two or more depositors are the designated payees of directly deposited social security payments, unless those depositors are joint payees of directly deposited payments that represent a benefit to only one of the depositors, in which case the exemption under paragraph (2) applies.
(c) The amount of a deposit account that exceeds the exemption provided in subdivision (b) is exempt to the extent that it consists of payments of public benefits or social security benefits.
(d) Notwithstanding Article 5 (commencing with Section 701.010) of Chapter 3, when a deposit account is levied upon or otherwise sought to be subjected to the enforcement of a money judgment, the financial institution that holds the deposit account shall either place the amount that exceeds the exemption provided in subdivision (b) in a suspense account or otherwise prohibit withdrawal of that amount pending notification of the failure of the judgment creditor to file the affidavit required by this section or the judicial determination of the exempt status of the amount. Within 10 business days after the levy, the financial institution shall provide the levying officer with a written notice stating (1) that the deposit account is one in which payments of public benefits or social security benefits are directly deposited by the government or its agent and (2) the balance of the deposit account that exceeds the exemption provided by subdivision (b). Promptly upon receipt of the notice, the levying officer shall serve the notice on the judgment creditor. Service shall be made personally or by mail.
(e) Notwithstanding the procedure prescribed in Article 2 (commencing with Section 703.510), whether there is an amount exempt under subdivision (c) shall be determined as follows:
(1) Within five days after the levying officer serves the notice on the judgment creditor under subdivision (d), a judgment creditor who desires to claim that the amount is not exempt shall file with the court an affidavit alleging that the amount is not exempt and file a copy with the levying officer. The affidavit shall be in the form of the notice of opposition provided by Section 703.560, and a hearing shall be set and held, and notice given, as provided by Sections 703.570 and 703.580. For the purpose of this subdivision, the "notice of opposition to the claim of exemption" in Sections 703.570 and 703.580 means the affidavit under this subdivision.
(2) If the judgment creditor does not file the affidavit with the levying officer and give notice of hearing pursuant to Section 703.570 within the time provided in paragraph (1), the levying officer shall release the deposit account and shall notify the financial institution.
(3) The affidavit constitutes the pleading of the judgment creditor, subject to the power of the court to permit amendments in the interest of justice. The affidavit is deemed controverted and no counter affidavit is required.
(4) At a hearing under this subdivision, the judgment debtor has the burden of proving that the excess amount is exempt.
(5) At the conclusion of the hearing, the court by order shall determine whether or not the amount of the deposit account is exempt pursuant to subdivision (c) in whole or in part and shall make an appropriate order for its prompt disposition. No findings are required in a proceeding under this subdivision.
(6) Upon determining the exemption claim for the deposit account under subdivision (c), the court shall immediately transmit a certified copy of the order of the court to the financial institution and to the levying officer. If the order determines that all or part of the excess is exempt under subdivision (c), with respect to the amount of the excess which is exempt, the financial institution shall transfer the exempt excess from the suspense account or otherwise release any restrictions on its withdrawal by the judgment debtor. The transfer or release shall be effected within three business days of the receipt of the certified copy of the court order by the financial institution.
(f) If the judgment debtor claims that a portion of the amount is exempt other than pursuant to subdivision (c), the claim of exemption shall be made pursuant to Article 2 (commencing with Section 703.510). If the judgment debtor also opposes the judgment creditor's affidavit regarding an amount exempt pursuant to subdivision (c), both exemptions shall be determined at the same hearing, provided the judgment debtor has complied with Article 2 (commencing with Section 703.510).
§ 704.090. Inmate's Trust Account
(a) The funds of a judgment debtor confined in a prison or facility under the jurisdiction of the Department of Corrections or the Department of the Youth Authority or confined in any county or city jail, road camp, industrial farm, or other local correctional facility, held in trust for or to the credit of the judgment debtor, in an inmate's trust account or similar account by the state, county, or city, or any agency thereof, are exempt without making a claim in the amount of one thousand two hundred twenty-five dollars ($ 1,225). If the judgment debtor is married, each spouse is entitled to a separate exemption under this section or the spouses may combine their exemptions.
(b) Notwithstanding subdivision (a), if the judgment is for a restitution fine or order imposed pursuant to subdivision (a) of Section 13967 of the Government Code, as operative on or before September 28, 1994, or Section 1203.04 of the Penal Code, as operative on or before August 2, 1995, or Section 1202.4 of the Penal Code, the funds held in trust for, or to the credit of, a judgment debtor described in subdivision (a) are exempt in the amount of three hundred dollars ($ 300) without making a claim. The exemption provided in this subdivision is not subject to adjustment under Section 703.150.
§ 704.100. Life Insurance Policies
(a) Unmatured life insurance policies (including endowment and annuity policies), but not the loan value of such policies, are exempt without making a claim.
(b) The aggregate loan value of unmatured life insurance policies (including endowment and annuity policies) is subject to the enforcement of a money judgment but is exempt in the amount of nine thousand seven hundred dollars ($ 9,700). If the judgment debtor is married, each spouse is entitled to a separate exemption under this subdivision, and the exemptions of the spouses may be combined, regardless of whether the policies belong to either or both spouses and regardless of whether the spouse of the judgment debtor is also a judgment debtor under the judgment. The exemption provided by this subdivision shall be first applied to policies other than the policy before the court and then, if the exemption is not exhausted, to the policy before the court.
(c) Benefits from matured life insurance policies (including endowment and annuity policies) are exempt to the extent reasonably necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.
§ 704.110. Public Retirement And Related Benefits And Contributions
(a) As used in this section:
(1) "Public entity" means the state, or a city, city and county, county, or other political subdivision of the state, or a public trust, public corporation, or public board, or the governing body of any of them, but does not include the United States except where expressly so provided.
(2) "Public retirement benefit" means a pension or an annuity, or a retirement, disability, death, or other benefit, paid or payable by a public retirement system.
(3) "Public retirement system" means a system established pursuant to statute by a public entity for retirement, annuity, or pension purposes or payment of disability or death benefits.
(b) All amounts held, controlled, or in process of distribution by a public entity derived from contributions by the public entity or by an officer or employee of the public entity for public retirement benefit purposes, and all rights and benefits accrued or accruing to any person under a public retirement system, are exempt without making a claim.
(c) Notwithstanding subdivision (b), where an amount described in subdivision (b) becomes payable to a person and is sought to be applied to the satisfaction of a judgment for child, family, or spousal support against that person:
(1) Except as provided in paragraphs (2) and (3), the amount is exempt only to the extent that the court determines under subdivision (c) of Section 703.070.
(2) If the amount sought to be applied to the satisfaction of the judgment is payable periodically, the amount payable is subject to an earnings assignment order for support as defined in Section 706.011, or any other applicable enforcement procedure, but the amount to be withheld pursuant to the assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052. The paying entity may deduct from the payment being made to the judgment debtor, for each payment made pursuant to an earnings assignment order under this paragraph, an amount reflecting the actual cost of administration caused by the assignment order of up to two dollars ($ 2) for each payment.
(3) If the intercept procedure provided for in Section 11357 of the Welfare and Institutions Code is used for benefits that are payable periodically, the amount to be withheld shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052.
(4) If the amount sought to be applied to the satisfaction of the judgment is payable as a lump-sum distribution, the amount payable is subject to the intercept procedure provided in Section 11357 of the Welfare and Institutions Code or any other applicable enforcement procedure.
(d) All amounts received by any person, a resident of the state, as a public retirement benefit or as a return of contributions and interest thereon from the United States or a public entity or from a public retirement system are exempt.
§ 704.113. Public Employee Vacation Credits
(a) As used in this section, "vacation credits" means vacation credits accumulated by a state employee pursuant to Section 18050 of the Government Code or by any other public employee pursuant to any law for the accumulation of vacation credits applicable to the employee.
(b) All vacation credits are exempt without making a claim.
(c) Amounts paid periodically or as a lump sum representing vacation credits are subject to any earnings withholding order served under Chapter 5 (commencing with Section 706.010) or any earnings assignment order for support as defined in Section 706.011 and are exempt to the same extent as earnings of a judgment debtor.
§ 704.115. Private Retirement And Related Benefits And Contributions
(a) As used in this section, "private retirement plan" means:
(1) Private retirement plans, including, but not limited to, union retirement plans.
(2) Profit-sharing plans designed and used for retirement purposes.
(3) Self-employed retirement plans and individual retirement annuities or accounts provided for in the Internal Revenue Code of 1986, as amended, including individual retirement accounts qualified under Section 408 or 408A of that code, to the extent the amounts held in the plans, annuities, or accounts do not exceed the maximum amounts exempt from federal income taxation under that code.
(b) All amounts held, controlled, or in process of distribution by a private retirement plan, for the payment of benefits as an annuity, pension, retirement allowance, disability payment, or death benefit from a private retirement plan are exempt.
(c) Notwithstanding subdivision (b), where an amount described in subdivision (b) becomes payable to a person and is sought to be applied to the satisfaction of a judgment for child, family, or spousal support against that person:
(1) Except as provided in paragraph (2), the amount is exempt only to the extent that the court determines under subdivision (c) of Section 703.070.
(2) If the amount sought to be applied to the satisfaction of the judgment is payable periodically, the amount payable is subject to an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure, but the amount to be withheld pursuant to the assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052.
(d) After payment, the amounts described in subdivision (b) and all contributions and interest thereon returned to any member of a private retirement plan are exempt.
(e) Notwithstanding subdivisions (b) and (d), except as provided in subdivision (f), the amounts described in paragraph (3) of subdivision (a) are exempt only to the extent necessary to provide for the support of the judgment debtor when the judgment debtor retires and for the support of the spouse and dependents of the judgment debtor, taking into account all resources that are likely to be available for the support of the judgment debtor when the judgment debtor retires. In determining the amount to be exempt under this subdivision, the court shall allow the judgment debtor such additional amount as is necessary to pay any federal and state income taxes payable as a result of the applying of an amount described in paragraph (3) of subdivision (a) to the satisfaction of the money judgment.
(f) Where the amounts described in paragraph (3) of subdivision (a) are payable periodically, the amount of the periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010)(Wage Garnishment Law). To the extent a lump-sum distribution from an individual retirement account is treated differently from a periodic distribution under this subdivision, any lump-sum distribution from an account qualified under Section 408A of the Internal Revenue Code shall be treated the same as a lump-sum distribution from an account qualified under Section 408 of the Internal Revenue Code for purposes of determining whether any of that payment may be applied to the satisfaction of a money judgment.
§ 704.120. Unemployment Benefits And Contributions; Strike Benefits
(a) Contributions by workers payable to the Unemployment Compensation Disability Fund and by employers payable to the Unemployment Fund are exempt without making a claim.
(b) Before payment, amounts held for payment of the following benefits are exempt without making a claim:
(1) Benefits payable under Division 1 (commencing with Section 100) of the Unemployment Insurance Code.
(2) Incentives payable under Division 2 (commencing with Section 5000) of the Unemployment Insurance Code.
(3) Benefits payable under an employer's plan or system to supplement unemployment compensation benefits of the employees generally or for a class or group of employees.
(4) Unemployment benefits payable by a fraternal organization to its bona fide members.
(5) Benefits payable by a union due to a labor dispute.
(c) After payment, the benefits described in subdivision (b) are exempt.
(d) During the payment of benefits described in paragraph (1) of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, through the appropriate local child support agency, seek to apply the benefit payment to satisfy the judgment as provided by Section 17518 of the Family Code.
(e) During the payment of benefits described in paragraphs (2) to (5), inclusive, of subdivision (b) to a judgment debtor under a support judgment, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the benefit payments to satisfy the judgment by an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure. If the benefit is payable periodically, the amount to be withheld pursuant to the assignment order or other procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest whole dollar. Otherwise the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an assignment order under this subdivision an amount reflecting the actual cost of administration caused by the assignment order up to two dollars ($ 2) for each payment.
§ 704.130. Disability And Health Benefits
(a) Before payment, benefits from a disability or health insurance policy or program are exempt without making a claim. After payment, the benefits are exempt.
(b) Subdivision (a) does not apply to benefits that are paid or payable to cover the cost of health care if the judgment creditor is a provider of health care whose claim is the basis on which the benefits are paid or payable.
(c) During the payment of disability benefits described in subdivision (a) to a judgment debtor under a support judgment, the judgment creditor or local child support agency may seek to apply the benefit payments to satisfy the judgment by an earnings assignment order for support, as defined in Section 706.011, or any other applicable enforcement procedure, but the amount to be withheld pursuant to the earnings assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings assignment order for support under Section 706.052.
§ 704.140. Damages For Personal Injury
(a) Except as provided in Article 5 (commencing with Section 708.410) of Chapter 6, a cause of action for personal injury is exempt without making a claim.
(b) Except as provided in subdivisions (c) and (d), an award of damages or a settlement arising out of personal injury is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.
(c) Subdivision (b) does not apply if the judgment creditor is a provider of health care whose claim is based on the providing of health care for the personal injury for which the award or settlement was made.
(d) Where an award of damages or a settlement arising out of personal injury is payable periodically, the amount of such periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).
§ 704.150. Damages For Wrongful Death
(a) Except as provided in Article 5 (commencing with Section 708.410) of Chapter 6, a cause of action for wrongful death is exempt without making a claim.
(b) Except as provided in subdivision (c), an award of damages or a settlement arising out of the wrongful death of the judgment debtor's spouse or a person on whom the judgment debtor or the judgment debtor's spouse was dependent is exempt to the extent reasonably necessary for support of the judgment debtor and the spouse and dependents of the judgment debtor.
(c) Where an award of damages or a settlement arising out of the wrongful death of the judgment debtor's spouse or a person on whom the judgment debtor or the judgment debtor's spouse was dependent is payable periodically, the amount of such a periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law).
§ 704.160. Workers' Compensation; Exceptions
(a) Except as provided by Chapter 1 (commencing with Section 4900) of Part 3 of Division 4 of the Labor Code, before payment, a claim for workers' compensation or workers' compensation awarded or adjudged is exempt without making a claim. Except as specified in subdivision (b), after payment, the award is exempt.
(b) Notwithstanding any other provision of law, during the payment of workers' compensation temporary disability benefits described in subdivision (a) to a support judgment debtor, the support judgment creditor may, through the appropriate local child support agency, seek to apply the workers' compensation temporary disability benefit payment to satisfy the support judgment as provided by Section 17404 of the Family Code.
(c) Notwithstanding any other provision of law, during the payment of workers' compensation temporary disability benefits described in subdivision (a) to a support judgment debtor under a support judgment, including a judgment for reimbursement of public assistance, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the temporary disability benefit payments to satisfy the support judgment by an earnings assignment order for support, as defined in Section 5208 of the Family Code, or any other applicable enforcement procedure. The amount to be withheld pursuant to the earnings assignment order for support or other enforcement procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest dollar. Otherwise, the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an order assigning earnings under this subdivision an amount reflecting the actual cost of administration of this assignment, up to two dollars ($ 2) for each payment.
(d) Unless the provision or context otherwise requires, the following definitions govern the construction of this section.
(1) "Judgment debtor" or "support judgment debtor" means a person who is owing a duty of support.
(2) "Judgment creditor" or "support judgment creditor" means the person to whom support has been ordered to be paid.
(3) "Support" refers to an obligation owing on behalf of a child, spouse, or family; or an amount owing pursuant to Section 17402 of the Family Code. It also includes past due support or arrearage when it exists.
§ 704.170. Aid Provided To Needy Persons
Before payment, aid provided pursuant to Division 9 (commencing with Section 10000) of the Welfare and Institutions Code or similar aid provided by a charitable organization or a fraternal benefit society as defined in Section 10990 of the Insurance Code, is exempt without making a claim. After payment, the aid is exempt.
§ 704.180. Relocation Benefits
Before payment, relocation benefits for displacement from a dwelling which are to be paid pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code or the federal "Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970" (42 U.S.C. Sec. 4601 et seq.), as amended, are exempt without making a claim. After payment, the benefits are exempt.
§ 704.190. Financial Aid Provided To Student By Educational Institution
(a) As used in this section, "institution of higher education" means "institution of higher education" as defined in Section 1141(a) of Title 20 of the United States Code, as amended.
(b) Before payment, financial aid for expenses while attending school provided to a student by an institution of higher education is exempt without making a claim. After payment, the aid is exempt.
§ 704.200. Cemetery Plot
(a) As used in this section:
(1) "Cemetery" has the meaning provided by Section 7003 of the Health and Safety Code.
(2) "Family plot" is a plot that satisfies the requirements of Section 8650 of the Health and Safety Code.
(3) "Plot" has the meaning provided by Section 7022 of the Health and Safety Code.
(b) A family plot is exempt without making a claim.
(c) Except as provided in subdivision (d), a cemetery plot for the judgment debtor and the spouse of the judgment debtor is exempt.
(d) Land held for the purpose of sale or disposition as cemetery plots or otherwise is not exempt.
Glossary Of Bankruptcy Terms
Bankruptcy law is primarily federal law and varies little from state to state. The United States Constitution grants to Congress the power to establish uniform bankruptcy laws throughout the United States, which ensures uniformity in how bankruptcy proceedings are conducted, encourages interstate commerce, and promotes national economic security. The individual states do, however, retain jurisdiction over certain debtor-creditor issues that are not addressed by or do not conflict with federal bankruptcy law, such as which property remains exempt from creditors' claims.
Bankruptcy law provides two basic forms of relief: (1) liquidation and (2) rehabilitation, also known as reorganization.
- Chapter 7 Liquidation. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. In a Chapter 7 liquidation case, a bankruptcy trustee collects the debtor's nonexempt property and converts it into cash. The trustee distributes the resulting fund among the creditors in a particular order of priority described in the Code. Not all creditors will receive the full amount owed through this process, and some may receive nothing. When liquidation and distribution are complete, the bankruptcy court may discharge any remaining debts of an individual debtor. If the debtor is a corporation, it ceases to exist after liquidation and distribution, and there is therefore no real reason for further discharge because the creditors cannot seek payment from an entity that no longer exists.
- Chapter 11 or Chapter 13 Rehabilitation. In a rehabilitation or reorganization, the option courts often prefer, creditors may be provided with a better opportunity to recoup what they are owed. Chapter 11 or Chapter 13 of the Bankruptcy Code governs this type of bankruptcy. Chapter 11 usually applies to individual debtors with excessive or complex debts, or to large commercial entities like corporations. Chapter 13 usually applies to individual consumers with smaller debts. (Farmers and municipalities may seek reorganization through the Code's special chapters, Chapters 12 and 9, respectively.) Reorganization provides a greater opportunity to retain assets if the debtor agrees to pay off debts according to a plan approved by the bankruptcy court. If the debtor fails to do so, however, the court may order liquidation.
MEANS TEST
Debtors must meet a means test to determine if they are financially eligible for straight Chapter 7 liquidation. In brief, if a debtor can repay out of his adjusted current monthly income $1000 each month to unsecured creditors, over a span of 60 months, he may not avail himself of Chapter 7 and must go into Chapter 13.
VOLUNTARY BANKRUPTCY
In most instances, the bankruptcy case is filed by the debtor, which is considered a voluntary bankruptcy. Once the debtor files the bankruptcy petition, he or she is immediately entitled to relief from creditors through the bankruptcy procedure known as the automatic stay. The automatic stay freezes all debt-collection activity and forces the creditors to allow the bankruptcy proceeding to determine how payment will be made.
NVOLUNTARY BANKRUPTCY
Under Chapters 7 and 11, creditors, too, have the option of filing for relief against the debtor, which is known as an involuntary bankruptcy. Involuntary bankruptcies are allowed only when there are a minimum number of creditors and a minimum amount of debt. The debtor has the right to file a response, after which the court determines whether the creditors are entitled to relief. If the court dismisses the involuntary bankruptcy filing, finding that it has no merit, the creditors may have to pay the debtor's attorneys' fees, damages for any losses the debtor experienced because of the bankruptcy, and even punitive damages to punish the creditors for the frivolous or abusive filing of a petition.
Lawyers specializing in bankruptcy law can help both debtors and creditors overcome obstacles to the repayment of debt. Their expertise often extends beyond bankruptcy to include debt repayment and collection options that can circumvent the need for a bankruptcy filing. The following are just some of the areas in which bankruptcy lawyers can assist their clients.
COLLECTIONS AND REPOSSESSION
Remedies sought by creditors against debtors who have defaulted on their obligations. Collections include any technique to get the debtor to make up the remaining debt, including use of a collection agency or the courts. Creditors may also have outstanding debts legally recognized, and then enforced against a debtor's property involuntarily with garnishments, liens, or levies. Repossession of collateral is another technique used when property is pledged to secure a debt.
COMMERCIAL BANKRUPTCY
A remedy available to businesses that are unable to pay their debts. Options include liquidation, in which many of the business's assets are sold and the proceeds are divided among the creditors, and reorganization or restructuring, in which the business continues to operate according to a plan that allows for at least partial payment to creditors.
CONSUMER BANKRUPTCY
A method through which individuals may be able to get out from under insurmountable debt and make a fresh start, albeit with a negative impact on their credit ratings. As in commercial bankruptcy, there are two options: liquidate assets to pay off creditors, or file a wage-earner plan that allows the debtor to retain more assets while working to pay off his or her debts.
CREDITORS' RIGHTS
Include a full range of options available to creditors to collect unpaid debts. These rights include collection actions, repossession, foreclosure, garnishment, replevin, attachment, obtaining a court judgment, liens, and forcing the debtor into involuntary bankruptcy.
DISCHARGE
The bankruptcy term for wiping out many of the debtor's remaining debts at the conclusion of the bankruptcy proceeding. A discharge is available to only certain debtors, however, and only certain debts are dischargeable.
FORECLOSURES
The actions taken when a mortgagor fails to make the required mortgage payments on time and the lender, or mortgagee, forces the sale of the property — often the debtor's home — to pay off the debt. Foreclosures can be either judicial, which requires court involvement, or pursuant to a clause in the mortgage that allows for such sales.
GARNISHMENT
A creditor's remedy aimed not directly at the debtor but rather at a third party who owes money to the debtor or holds some of the debtor's property. The garnishment process notifies the third party that the creditor intends to apply the third party's property to satisfy the debtor's debt. Typical garnishees, as the third parties are called, include the debtor's employer and the bank in which the debtor has his or her accounts.
REORGANIZATION AND RESTRUCTURING
Methods by which a bankrupt business may reorganize itself in order to keep operating and pay off creditors at least part of what it owes. This commercial bankruptcy option has many advantages over liquidation, which requires selling off many assets and after which the business ceases to exist.
WORKOUTS
Non-bankruptcy agreements between debtors and creditors in which the creditors agree to take less money than the full amount owed or accept payments over a longer period of time than originally anticipated. Workouts have the advantages of being voluntary, less complicated, and less negatively perceived than bankruptcy.
BANKRUPTCY CHAPTER 13
When an individual with a regular income who is overcome by debts, but believes such debt can be repaid in full or part within a reasonable period of time, files under chapter 13 of the Bankruptcy Code. Chapter 13 permits the debtor to file a plan in which the debtor agrees to pay a certain percentage of future income to the Bankruptcy Court for payment to creditors. If the Court approves the plan, the debtor will be under the Court's protection while repaying such debts.
FORECLOSURE
The legal proceeding in which a bank or other secured creditor sells or repossesses a piece of real property due to the owner's default on its promissory note. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."
DEBT ELIMINATION
Debt is generally resolved, or eliminated, with bankruptcy. But some people wish to avoid bankruptcy. If you wish to avoid bankruptcy, contact us to discuss other options. In certain cases we can settle your debt for less than the original amount owed. In other cases, we can reorganize your debt.
ADVERSARY PROCEEDING
A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. A nonexclusive list of adversary proceedings is set forth in Fed. R. Bankr. P. 7001.
AUTOMATIC STAY
An injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.
BANKRUPTCY
A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).
BANKRUPTCY COURT
The bankruptcy judges in regular active service in each district; a unit of the district court
BANKRUPTCY ESTATE
All legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)
BANKRUPTCY JUDGE
A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases.
BANKRUPTCY PETITION
The document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) by which opens the bankruptcy case. (There are official forms for bankruptcy petitions.)
CHAPTER 7
The chapter of the Bankruptcy Code providing for "liquidation,"(i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.)
CHAPTER 9
The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).
CHAPTER 11
The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)
CHAPTER 12
The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code.
CHAPTER 13
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)
CLAIM
A creditor's assertion of a right to payment from the debtor or the debtor's property.
CONFIRMATION
Bankruptcy judge's approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13.
CONSUMER DEBTOR
A debtor whose debts are primarily consumer debts.
CONSUMER DEBTS
Debts incurred for personal, as opposed to business, needs.
CREDITOR
One to whom the debtor owes money or who claims to be owed money by the debtor.
CURRENT MONTHLY INCOME
The average monthly income received by the debtor over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from nondebtors and income from the debtor's spouse if the petition is a joint petition, but not including social security income and certain other payments made because the debtor is the victim of certain crimes. 11 U.S.C. § 101(10A).
DEBTOR
A person who has filed a petition for relief under the Bankruptcy Code.
DEFENDANT
An individual (or business) against whom a lawsuit is filed.
DISCHARGE
A release of a debtor from personal liability for certain dischargeable debts set forth in the Bankruptcy Code. (A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.)
DISCHARGEABLE DEBT
A debt for which the Bankruptcy Code allows the debtor's personal liability to be eliminated.
EQUITY
The value of a debtor's interest in property that remains after liens and other creditors' interests are considered. (Example: If a house valued at $100,000 is subject to a $80,000 mortgage, there is $20,000 of equity.)
EXECUTORY CONTRACT OR LEASEKEY PRACTICE AREAS
Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.)
EXEMPTIONS, EXEMPT PROPERTY
Certain property owned by an individual debtor that the Bankruptcy Code or applicable state law permits the debtor to keep from unsecured creditors. For example, in some states the debtor may be able to exempt all or a portion of the equity in the debtor's primary residence (homestead exemption) or some or all "tools of the trade" used by the debtor to make a living (i.e., auto tools for an auto mechanic or dental tools for a dentist). The availability and amount of property the debtor may exempt depends on the state the debtor lives in.
FRESH START
The characterization of a debtor's status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.)
INSIDER (OF INDIVIDUAL DEBTOR)
Any relative of the debtor or of a general partner of the debtor; partnership in which the debtor is a general partner; general partner of the debtor; or a corporation of which the debtor is a director, officer, or person in control.
INSIDER (OF CORPORATE DEBTOR)
A director, officer, or person in control of the debtor; a partnership in which the debtor is a general partner; a general partner of the debtor; or a relative of a general partner, director, officer, or person in control of the debtor.
JOINT PETITION
One bankruptcy petition filed by a husband and wife together.
COLLECTIONS AND REPOSSESSION
A remedy available to businesses that are unable to pay their debts. Options include liquidation, in which many of the business's assets are sold and the proceeds are divided among the creditors, and reorganization or restructuring, in which the business continues to operate according to a plan that allows for at least partial payment to creditors.
LIEN
A sale of a debtor's property with the proceeds to be used for the benefit of creditors.
LIQUIDATED CLAIM
A creditor's claim for a fixed amount of money.
MEANS TEST
Section 707(b)(2) of the Bankruptcy Code applies a "means test" to determine whether an individual debtor's chapter 7 filing is presumed to be an abuse of the Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). Abuse is presumed if the debtor's aggregate current monthly income (see definition above) over 5 years, net of certain statutorily allowed expenses is more than (i) $10,000, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $6,000. The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income.
MOTION TO LIFT THE AUTOMATIC STAY
A request by a creditor to allow the creditor to take action against the debtor or the debtor's property that would otherwise be prohibited by the automatic stay.
NO-ASSET CASE
A chapter 7 case where there are no assets available to satisfy any portion of the creditors' unsecured claims.
NONDISCHARGEABLE DEBT
A debt that cannot be eliminated in bankruptcy. Examples include a home mortgage, debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayment, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor's conviction of a crime. Some debts, such as debts for money or property obtained by false pretenses and debts for fraud or defalcation while acting in a fiduciary capacity may be declared nondischargeable only if a creditor timely files and prevails in a nondischargeability action.
OBJECTION TO DISCHARGEABILITY
A trustee's or creditor's objection to the debtor being released from personal liability for certain dischargeable debts. Common reasons include allegations that the debt to be discharged was incurred by false pretenses or that debt arose because of the debtor's fraud while acting as a fiduciary.
OBJECTION TO EXEMPTIONS
A trustee's or creditor's objection to the debtor's attempt to claim certain property as exempt from liquidation by the trustee to creditors.
PETITION PREPARER
A business not authorized to practice law that prepares bankruptcy petition.
POST PETITION TRANSFER
A transfer of the debtor's property made after the commencement of the case.
PREBANKRUPTCY PLANNING
The arrangement (or rearrangement) of a debtor's property to allow the debtor to take maximum advantage of exemptions. (Prebankruptcy planning typically includes converting nonexempt assets into exempt assets.)
PREFERENCE OR PREFERENTIAL DEBT PAYMENT
A debt payment made to a creditor in the 90-day period before a debtor files bankruptcy (or within one year if the creditor was an insider) that gives the creditor more than the creditor would receive in the debtor's chapter 7 case.
PRIORITY CLAIM
An unsecured claim that is entitled to be paid ahead of other unsecured claims that are not entitled to priority status. Priority refers to the order in which these unsecured claims are to be paid.
PROOF OF CLAIM
A written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money. (There is an official form for this purpose.)
PROPERTY OF THE ESTATE
All legal or equitable interests of the debtor in property as of the commencement of the case.
REAFFIRMATION AGREEMENT
An agreement by a chapter 7 debtor to continue paying a dischargeable debt (such as an auto loan) after the bankruptcy, usually for the purpose of keeping collateral (i.e. the car) that would otherwise be subject to repossession.
SCHEDULES
Detailed lists filed by the debtor along with (or shortly after filing) the petition showing the debtor's assets, liabilities, and other financial information. (There are official forms a debtor must use.)
SECURED CREDITOR
A creditor holding a claim against the debtor who has the right to take and hold or sell certain property of the debtor in satisfaction of some or all of the claim.
SECURED DEBT
Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default. Examples include home mortgages, auto loans and tax liens.
STATEMENT OF INTENTION
A declaration made by a chapter 7 debtor concerning plans for dealing with consumer debts that are secured by property of the estate.
341 MEETING
The meeting of creditors required by section 341 of the Bankruptcy Code at which the debtor is questioned under oath by creditors, a trustee, examiner, or the U.S. trustee about his/her financial affairs. Also called meeting of creditors
TRANSFER
Any mode or means by which a debtor disposes of or parts with his/her property.
TRUSTEE
The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator. The trustee is a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases and some chapter 11 cases. The trustee's responsibilities include reviewing the debtor's petition and schedules and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. In chapter 7, the trustee liquidates property of the estate, and makes distributions to creditors. Trustees in chapter 12 and 13 have similar duties to a chapter 7 trustee and the additional responsibilities of overseeing the debtor's plan, receiving payments from debtors, and disbursing plan payments to creditors.
U.S. TRUSTEE
An officer of the Justice Department responsible for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties.
UNDERSECURED CLAIM
A debt secured by property that is worth less than the full amount of the debt.
UNSCHEDULED DEBT
A debt that should have been listed by the debtor in the schedules filed with the court but was not. (Depending on the circumstances, an unscheduled debt may or may not be discharged.)
UNSECURED CLAIM
A claim or debt for which a creditor holds no special assurance of payment, such as a mortgage or lien; a debt for which credit was extended based solely upon the creditor's assessment of the debtor's future ability to pay.
VOLUNTARY TRANSFER
A transfer of a debtor's property with the debtor's consent.
Glossary Of Bankruptcy Terms
Bankruptcy law is primarily federal law and varies little from state to state. The United States Constitution grants to Congress the power to establish uniform bankruptcy laws throughout the United States, which ensures uniformity in how bankruptcy proceedings are conducted, encourages interstate commerce, and promotes national economic security. The individual states do, however, retain jurisdiction over certain debtor-creditor issues that are not addressed by or do not conflict with federal bankruptcy law, such as which property remains exempt from creditors' claims.
Bankruptcy law provides two basic forms of relief: (1) liquidation and (2) rehabilitation, also known as reorganization.
- Chapter 7 Liquidation. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. In a Chapter 7 liquidation case, a bankruptcy trustee collects the debtor's nonexempt property and converts it into cash. The trustee distributes the resulting fund among the creditors in a particular order of priority described in the Code. Not all creditors will receive the full amount owed through this process, and some may receive nothing. When liquidation and distribution are complete, the bankruptcy court may discharge any remaining debts of an individual debtor. If the debtor is a corporation, it ceases to exist after liquidation and distribution, and there is therefore no real reason for further discharge because the creditors cannot seek payment from an entity that no longer exists.
- Chapter 11 or Chapter 13 Rehabilitation. In a rehabilitation or reorganization, the option courts often prefer, creditors may be provided with a better opportunity to recoup what they are owed. Chapter 11 or Chapter 13 of the Bankruptcy Code governs this type of bankruptcy. Chapter 11 usually applies to individual debtors with excessive or complex debts, or to large commercial entities like corporations. Chapter 13 usually applies to individual consumers with smaller debts. (Farmers and municipalities may seek reorganization through the Code's special chapters, Chapters 12 and 9, respectively.) Reorganization provides a greater opportunity to retain assets if the debtor agrees to pay off debts according to a plan approved by the bankruptcy court. If the debtor fails to do so, however, the court may order liquidation.
MEANS TEST
Debtors must meet a means test to determine if they are financially eligible for straight Chapter 7 liquidation. In brief, if a debtor can repay out of his adjusted current monthly income $1000 each month to unsecured creditors, over a span of 60 months, he may not avail himself of Chapter 7 and must go into Chapter 13.
VOLUNTARY BANKRUPTCY
In most instances, the bankruptcy case is filed by the debtor, which is considered a voluntary bankruptcy. Once the debtor files the bankruptcy petition, he or she is immediately entitled to relief from creditors through the bankruptcy procedure known as the automatic stay. The automatic stay freezes all debt-collection activity and forces the creditors to allow the bankruptcy proceeding to determine how payment will be made.
NVOLUNTARY BANKRUPTCY
Under Chapters 7 and 11, creditors, too, have the option of filing for relief against the debtor, which is known as an involuntary bankruptcy. Involuntary bankruptcies are allowed only when there are a minimum number of creditors and a minimum amount of debt. The debtor has the right to file a response, after which the court determines whether the creditors are entitled to relief. If the court dismisses the involuntary bankruptcy filing, finding that it has no merit, the creditors may have to pay the debtor's attorneys' fees, damages for any losses the debtor experienced because of the bankruptcy, and even punitive damages to punish the creditors for the frivolous or abusive filing of a petition.
Lawyers specializing in bankruptcy law can help both debtors and creditors overcome obstacles to the repayment of debt. Their expertise often extends beyond bankruptcy to include debt repayment and collection options that can circumvent the need for a bankruptcy filing. The following are just some of the areas in which bankruptcy lawyers can assist their clients.
COLLECTIONS AND REPOSSESSION
Remedies sought by creditors against debtors who have defaulted on their obligations. Collections include any technique to get the debtor to make up the remaining debt, including use of a collection agency or the courts. Creditors may also have outstanding debts legally recognized, and then enforced against a debtor's property involuntarily with garnishments, liens, or levies. Repossession of collateral is another technique used when property is pledged to secure a debt.
COMMERCIAL BANKRUPTCY
A remedy available to businesses that are unable to pay their debts. Options include liquidation, in which many of the business's assets are sold and the proceeds are divided among the creditors, and reorganization or restructuring, in which the business continues to operate according to a plan that allows for at least partial payment to creditors.
CONSUMER BANKRUPTCY
A method through which individuals may be able to get out from under insurmountable debt and make a fresh start, albeit with a negative impact on their credit ratings. As in commercial bankruptcy, there are two options: liquidate assets to pay off creditors, or file a wage-earner plan that allows the debtor to retain more assets while working to pay off his or her debts.
CREDITORS' RIGHTS
Include a full range of options available to creditors to collect unpaid debts. These rights include collection actions, repossession, foreclosure, garnishment, replevin, attachment, obtaining a court judgment, liens, and forcing the debtor into involuntary bankruptcy.
DISCHARGE
The bankruptcy term for wiping out many of the debtor's remaining debts at the conclusion of the bankruptcy proceeding. A discharge is available to only certain debtors, however, and only certain debts are dischargeable.
FORECLOSURES
The actions taken when a mortgagor fails to make the required mortgage payments on time and the lender, or mortgagee, forces the sale of the property — often the debtor's home — to pay off the debt. Foreclosures can be either judicial, which requires court involvement, or pursuant to a clause in the mortgage that allows for such sales.
GARNISHMENT
A creditor's remedy aimed not directly at the debtor but rather at a third party who owes money to the debtor or holds some of the debtor's property. The garnishment process notifies the third party that the creditor intends to apply the third party's property to satisfy the debtor's debt. Typical garnishees, as the third parties are called, include the debtor's employer and the bank in which the debtor has his or her accounts.
REORGANIZATION AND RESTRUCTURING
Methods by which a bankrupt business may reorganize itself in order to keep operating and pay off creditors at least part of what it owes. This commercial bankruptcy option has many advantages over liquidation, which requires selling off many assets and after which the business ceases to exist.
WORKOUTS
Non-bankruptcy agreements between debtors and creditors in which the creditors agree to take less money than the full amount owed or accept payments over a longer period of time than originally anticipated. Workouts have the advantages of being voluntary, less complicated, and less negatively perceived than bankruptcy.
BANKRUPTCY CHAPTER 13
When an individual with a regular income who is overcome by debts, but believes such debt can be repaid in full or part within a reasonable period of time, files under chapter 13 of the Bankruptcy Code. Chapter 13 permits the debtor to file a plan in which the debtor agrees to pay a certain percentage of future income to the Bankruptcy Court for payment to creditors. If the Court approves the plan, the debtor will be under the Court's protection while repaying such debts.
FORECLOSURE
The legal proceeding in which a bank or other secured creditor sells or repossesses a piece of real property due to the owner's default on its promissory note. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."
DEBT ELIMINATION
Debt is generally resolved, or eliminated, with bankruptcy. But some people wish to avoid bankruptcy. If you wish to avoid bankruptcy, contact us to discuss other options. In certain cases we can settle your debt for less than the original amount owed. In other cases, we can reorganize your debt.
ADVERSARY PROCEEDING
A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the court. A nonexclusive list of adversary proceedings is set forth in Fed. R. Bankr. P. 7001.
AUTOMATIC STAY
An injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.
BANKRUPTCY
A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).
BANKRUPTCY COURT
The bankruptcy judges in regular active service in each district; a unit of the district court
BANKRUPTCY ESTATE
All legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)
BANKRUPTCY JUDGE
A judicial officer of the United States district court who is the court official with decision-making power over federal bankruptcy cases.
BANKRUPTCY PETITION
The document filed by the debtor (in a voluntary case) or by creditors (in an involuntary case) by which opens the bankruptcy case. (There are official forms for bankruptcy petitions.)
CHAPTER 7
The chapter of the Bankruptcy Code providing for "liquidation,"(i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.)
CHAPTER 9
The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).
CHAPTER 11
The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)
CHAPTER 12
The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code.
CHAPTER 13
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)
CLAIM
A creditor's assertion of a right to payment from the debtor or the debtor's property.
CONFIRMATION
Bankruptcy judge's approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13.
CONSUMER DEBTOR
A debtor whose debts are primarily consumer debts.
CONSUMER DEBTS
Debts incurred for personal, as opposed to business, needs.
CREDITOR
One to whom the debtor owes money or who claims to be owed money by the debtor.
CURRENT MONTHLY INCOME
The average monthly income received by the debtor over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from nondebtors and income from the debtor's spouse if the petition is a joint petition, but not including social security income and certain other payments made because the debtor is the victim of certain crimes. 11 U.S.C. § 101(10A).
DEBTOR
A person who has filed a petition for relief under the Bankruptcy Code.
DEFENDANT
An individual (or business) against whom a lawsuit is filed.
DISCHARGE
A release of a debtor from personal liability for certain dischargeable debts set forth in the Bankruptcy Code. (A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.)
DISCHARGEABLE DEBT
A debt for which the Bankruptcy Code allows the debtor's personal liability to be eliminated.
EQUITY
The value of a debtor's interest in property that remains after liens and other creditors' interests are considered. (Example: If a house valued at $100,000 is subject to a $80,000 mortgage, there is $20,000 of equity.)
EXECUTORY CONTRACT OR LEASEKEY PRACTICE AREAS
Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.)
EXEMPTIONS, EXEMPT PROPERTY
Certain property owned by an individual debtor that the Bankruptcy Code or applicable state law permits the debtor to keep from unsecured creditors. For example, in some states the debtor may be able to exempt all or a portion of the equity in the debtor's primary residence (homestead exemption) or some or all "tools of the trade" used by the debtor to make a living (i.e., auto tools for an auto mechanic or dental tools for a dentist). The availability and amount of property the debtor may exempt depends on the state the debtor lives in.
FRESH START
The characterization of a debtor's status after bankruptcy, i.e., free of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.)
INSIDER (OF INDIVIDUAL DEBTOR)
Any relative of the debtor or of a general partner of the debtor; partnership in which the debtor is a general partner; general partner of the debtor; or a corporation of which the debtor is a director, officer, or person in control.
INSIDER (OF CORPORATE DEBTOR)
A director, officer, or person in control of the debtor; a partnership in which the debtor is a general partner; a general partner of the debtor; or a relative of a general partner, director, officer, or person in control of the debtor.
JOINT PETITION
One bankruptcy petition filed by a husband and wife together.
COLLECTIONS AND REPOSSESSION
A remedy available to businesses that are unable to pay their debts. Options include liquidation, in which many of the business's assets are sold and the proceeds are divided among the creditors, and reorganization or restructuring, in which the business continues to operate according to a plan that allows for at least partial payment to creditors.
LIEN
A sale of a debtor's property with the proceeds to be used for the benefit of creditors.
LIQUIDATED CLAIM
A creditor's claim for a fixed amount of money.
MEANS TEST
Section 707(b)(2) of the Bankruptcy Code applies a "means test" to determine whether an individual debtor's chapter 7 filing is presumed to be an abuse of the Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). Abuse is presumed if the debtor's aggregate current monthly income (see definition above) over 5 years, net of certain statutorily allowed expenses is more than (i) $10,000, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $6,000. The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income.
MOTION TO LIFT THE AUTOMATIC STAY
A request by a creditor to allow the creditor to take action against the debtor or the debtor's property that would otherwise be prohibited by the automatic stay.
NO-ASSET CASE
A chapter 7 case where there are no assets available to satisfy any portion of the creditors' unsecured claims.
NONDISCHARGEABLE DEBT
A debt that cannot be eliminated in bankruptcy. Examples include a home mortgage, debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayment, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor's conviction of a crime. Some debts, such as debts for money or property obtained by false pretenses and debts for fraud or defalcation while acting in a fiduciary capacity may be declared nondischargeable only if a creditor timely files and prevails in a nondischargeability action.
OBJECTION TO DISCHARGEABILITY
A trustee's or creditor's objection to the debtor being released from personal liability for certain dischargeable debts. Common reasons include allegations that the debt to be discharged was incurred by false pretenses or that debt arose because of the debtor's fraud while acting as a fiduciary.
OBJECTION TO EXEMPTIONS
A trustee's or creditor's objection to the debtor's attempt to claim certain property as exempt from liquidation by the trustee to creditors.
PETITION PREPARER
A business not authorized to practice law that prepares bankruptcy petition.
POST PETITION TRANSFER
A transfer of the debtor's property made after the commencement of the case.
PREBANKRUPTCY PLANNING
The arrangement (or rearrangement) of a debtor's property to allow the debtor to take maximum advantage of exemptions. (Prebankruptcy planning typically includes converting nonexempt assets into exempt assets.)
PREFERENCE OR PREFERENTIAL DEBT PAYMENT
A debt payment made to a creditor in the 90-day period before a debtor files bankruptcy (or within one year if the creditor was an insider) that gives the creditor more than the creditor would receive in the debtor's chapter 7 case.
PRIORITY CLAIM
An unsecured claim that is entitled to be paid ahead of other unsecured claims that are not entitled to priority status. Priority refers to the order in which these unsecured claims are to be paid.
PROOF OF CLAIM
A written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money. (There is an official form for this purpose.)
PROPERTY OF THE ESTATE
All legal or equitable interests of the debtor in property as of the commencement of the case.
REAFFIRMATION AGREEMENT
An agreement by a chapter 7 debtor to continue paying a dischargeable debt (such as an auto loan) after the bankruptcy, usually for the purpose of keeping collateral (i.e. the car) that would otherwise be subject to repossession.
SCHEDULES
Detailed lists filed by the debtor along with (or shortly after filing) the petition showing the debtor's assets, liabilities, and other financial information. (There are official forms a debtor must use.)
SECURED CREDITOR
A creditor holding a claim against the debtor who has the right to take and hold or sell certain property of the debtor in satisfaction of some or all of the claim.
SECURED DEBT
Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default. Examples include home mortgages, auto loans and tax liens.
STATEMENT OF INTENTION
A declaration made by a chapter 7 debtor concerning plans for dealing with consumer debts that are secured by property of the estate.
341 MEETING
The meeting of creditors required by section 341 of the Bankruptcy Code at which the debtor is questioned under oath by creditors, a trustee, examiner, or the U.S. trustee about his/her financial affairs. Also called meeting of creditors
TRANSFER
Any mode or means by which a debtor disposes of or parts with his/her property.
TRUSTEE
The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator. The trustee is a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases and some chapter 11 cases. The trustee's responsibilities include reviewing the debtor's petition and schedules and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. In chapter 7, the trustee liquidates property of the estate, and makes distributions to creditors. Trustees in chapter 12 and 13 have similar duties to a chapter 7 trustee and the additional responsibilities of overseeing the debtor's plan, receiving payments from debtors, and disbursing plan payments to creditors.
U.S. TRUSTEE
An officer of the Justice Department responsible for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure statements; monitoring creditors' committees; monitoring fee applications; and performing other statutory duties.
UNDERSECURED CLAIM
A debt secured by property that is worth less than the full amount of the debt.
UNSCHEDULED DEBT
A debt that should have been listed by the debtor in the schedules filed with the court but was not. (Depending on the circumstances, an unscheduled debt may or may not be discharged.)
UNSECURED CLAIM
A claim or debt for which a creditor holds no special assurance of payment, such as a mortgage or lien; a debt for which credit was extended based solely upon the creditor's assessment of the debtor's future ability to pay.
VOLUNTARY TRANSFER
A transfer of a debtor's property with the debtor's consent.
Bankruptcy Tools
We provide a glossary of some key bankruptcy terms
for your convenience.
Preparing to Meet with Your Bankruptcy Attorney.
Before meeting with your attorney, it is wise to prepare information relating to your case. This checklist provides different types of information you may be asked to bring to an initial meeting with your bankruptcy attorney.
The following article discusses the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
Bankruptcy Tools
We provide a glossary of some key bankruptcy terms
for your convenience.
Preparing to Meet with Your Bankruptcy Attorney.
Before meeting with your attorney, it is wise to prepare information relating to your case. This checklist provides different types of information you may be asked to bring to an initial meeting with your bankruptcy attorney.
The following article discusses the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
Credit Report Consent Form
DOWNLOAD INSTRUCTIONS
Print The Credit Report Consent Form: Below we have a Credit Report Consent Form PDF PDF available for print or download. You may choose to OPEN THE CREDIT REPORT CONSENT FORM PDF IN ANOTHER TAB
or you can choose to DOWNLOAD THE CREDIT REPORT CONSENT FORM PDF. Please note that all browsers are different when displaying PDF files, you will need to locate the "print" option to print the Credit Report Consent Form. If you have any questions, please contact us.
Fill It Out, And FAX It To: 530-823-3572
Credit Report Consent Form
DOWNLOAD INSTRUCTIONS
Print The Credit Report Consent Form: Below we have a Credit Report Consent Form PDF PDF available for print or download. You may choose to OPEN THE CREDIT REPORT CONSENT FORM PDF IN ANOTHER TAB
or you can choose to DOWNLOAD THE CREDIT REPORT CONSENT FORM PDF. Please note that all browsers are different when displaying PDF files, you will need to locate the "print" option to print the Credit Report Consent Form. If you have any questions, please contact us.
Fill It Out, And FAX It To: 530-823-3572
Trustee Questions
DOWNLOAD INSTRUCTIONS
1. State your name and current address for the record.
2. Please provide your picture ID and social security number card for review.
2. Please provide your picture ID and social security number card for review.
1. If the documents are in agreement with the § 341(a) meeting notice, a suggested statement for the record is: "I have viewed the original state of ________ drivers license (or other type_ of original photo ID) and original social security card (or other original document used for proof) and they match the name and social security number on the § 341 (a) meeting notice."
2. If the documents are not in agreement with the 341(a) meeting notice, a suggested statement for the record is: "I have viewed the original social security card (or other original document used for proof) and the number does not match the number on the § 341(a) meeting notice. I have instructed the debtor (or debtor's counsel) to submit to the court an amended verified statement by [date], with notice of the correct number to all creditors, the United States Trustee, and the trustee, and to file with the court a redacted copy of the notice, showing only the last four digits of the social security number, and a certificate of service."
3. When the documents do not match the petition, the trustee shall attempt to ascertain why, and shall report the matter to the United States Trustee.
4. If the debtor did not bring proof of identity and social security number, the trustee shall determine why.
3. Did you sign the petition, schedules, statements, and related documents and is the signature your own? Did you read the petition, schedules, statements, and related documents before you signed them?
4. Are you personally familiar with the information contained in the petition, schedules, statements and related documents? To the best of your knowledge, is the information contained in the petition, schedules, statements, and related documents true and correct? Are there any errors or omissions to bring to my attention at this time?
5. Are all of your assets identified on the schedules? Have you listed all of your creditors on the schedules?
6. Have you previously filed bankruptcy? (If so, the trustee must obtain the case number and the discharge information to determine the debtor(s) discharge eligibility.)
7. What is the address of your current employer?
8. Is the copy of the tax return you provided a true copy of the most recent tax return you filed?
9. Do you have a domestic support obligation? To whom? Please provide to me the claimant's address and telephone number, but do not state it on the record.
10. Have you read the Bankruptcy Information Sheet provided by the United States Trustee?
SAMPLE GENERAL QUESTIONS (To be asked when deemed appropriate.)
1. Do you own or have any interest whatsoever in any real estate?
1. If owned: When did you purchase the property? How much did the property cost? What are the mortgages encumbering it? What do you estimate the present value of the property to be? Is that the whole value or your share? How did you arrive at that value?
2. If renting: Have you ever owned the property in which you live and/or is its owner in any way related to you?
2. Have you made any transfers of any property or given any property away within the last one year period (or such longer period as applicable under state law)?
1. If yes: What did you transfer? To whom was it transferred? What did you receive in exchange? What did you do with the funds?
3. Does anyone hold property belonging to you?
1. If yes: Who holds the property and what is it? What is its value?
4. Do you have a claim against anyone or any business?
- If there are large medical debts, are the medical bills from injury?
- Are you the plaintiff in any lawsuit?
- What is the status of each case and who is representing you?
5. Are you entitled to life insurance proceeds or an inheritance as a result of someone's death?
- If yes: Please explain the details.
- If you become a beneficiary of anyone's estate within six months of the date your bankruptcy petition was filed, the trustee must be advised within ten days through your counsel of the nature and extent of the property you will receive. FRBP 1007(h)
6. Does anyone owe you money?
1. If yes: Is the money collectible? Why haven't you collected it? Who owes the money and where are they?
7. Have you made any large payments, over $600, to anyone in the past year?
8. Were federal income tax returns filed on a timely basis? When was the last return filed? Do you have copies of the federal income tax returns? At the time of the filing of your petition, were you entitled to a tax refund from the federal or state government?
1. If yes: Inquire as to amounts.
9. Do you have a bank account, either checking or savings?
1. If yes: In what banks and what were the balances as of the date you filed your petition?
10. When you filed your petition, did you have:
- any cash on hand?
- any U.S. Savings Bonds?
- any other stocks or bonds?
- any Certificates of Deposit?
- a safe deposit box in your name or in anyone else's name?
11. Do you own an automobile?
1. If yes: What is the year, make, and value? Do you owe any money on it? Is it insured?
12. Are you the owner of any cash value life insurance policies?
1. If yes: State the name of the company, face amount of the policy, cash surrender value, if any, and the beneficiaries.
13. Do you have any winning lottery tickets?
14. Do you anticipate that you might realize any property, cash or otherwise, as a result of a divorce or separation proceeding?
15. Regarding any consumer debts secured by your property, have you filed the required Statement of Intention with respect to the exemption, retention, or surrender of that secured property? Please provide a copy of the statement to the trustee. Have you performed that intention?
16. Have you been engaged in any business during the last six years?
- If yes: Where and when? What happened to the assets of the business?
In cases where debtors are engaged in business, the following questions should be considered:
- Who was responsible for maintaining financial records?
- Which of the following records were maintained?
- Where are each of the foregoing records now located?
- Who was responsible for preparing financial statements?
- How often were financial statements prepared?
- For what periods are financial statements available?
- Where are such financial statements now located?
- Was the business on a calendar year or a fiscal year?
- Were federal income tax returns filed on a timely basis? When was the last return filed?
- Do you have copies of the federal income tax returns? Who does have the copies?
- Do you have copies of the reports of such accountants? Who does have copies?
- What bank accounts were maintained within the last three years?
- Where are the bank statements and canceled checks now located?
- What insurance policies were in effect within the last year? What kind, and why?
- From whom can copies of such insurance policies be obtained?
- Is the debtor owed any outstanding accounts receivable? From whom? Are they collectible?
- Is there any inventory, property, or equipment remaining?
- Cash receipts journal
- Cash disbursements journal
- General journal
- Accounts receivable ledger
- Accounts payable ledger
- Payroll ledger
- Fixed asset ledger
- Inventory ledger
- General ledger
- Balance sheet, income statement, and cash flow statements
Trustee Questions
DOWNLOAD INSTRUCTIONS
1. State your name and current address for the record.
2. Please provide your picture ID and social security number card for review.
2. Please provide your picture ID and social security number card for review.
1. If the documents are in agreement with the § 341(a) meeting notice, a suggested statement for the record is: "I have viewed the original state of ________ drivers license (or other type_ of original photo ID) and original social security card (or other original document used for proof) and they match the name and social security number on the § 341 (a) meeting notice."
2. If the documents are not in agreement with the 341(a) meeting notice, a suggested statement for the record is: "I have viewed the original social security card (or other original document used for proof) and the number does not match the number on the § 341(a) meeting notice. I have instructed the debtor (or debtor's counsel) to submit to the court an amended verified statement by [date], with notice of the correct number to all creditors, the United States Trustee, and the trustee, and to file with the court a redacted copy of the notice, showing only the last four digits of the social security number, and a certificate of service."
3. When the documents do not match the petition, the trustee shall attempt to ascertain why, and shall report the matter to the United States Trustee.
4. If the debtor did not bring proof of identity and social security number, the trustee shall determine why.
3. Did you sign the petition, schedules, statements, and related documents and is the signature your own? Did you read the petition, schedules, statements, and related documents before you signed them?
4. Are you personally familiar with the information contained in the petition, schedules, statements and related documents? To the best of your knowledge, is the information contained in the petition, schedules, statements, and related documents true and correct? Are there any errors or omissions to bring to my attention at this time?
5. Are all of your assets identified on the schedules? Have you listed all of your creditors on the schedules?
6. Have you previously filed bankruptcy? (If so, the trustee must obtain the case number and the discharge information to determine the debtor(s) discharge eligibility.)
7. What is the address of your current employer?
8. Is the copy of the tax return you provided a true copy of the most recent tax return you filed?
9. Do you have a domestic support obligation? To whom? Please provide to me the claimant's address and telephone number, but do not state it on the record.
10. Have you read the Bankruptcy Information Sheet provided by the United States Trustee?
SAMPLE GENERAL QUESTIONS (To be asked when deemed appropriate.)
1. Do you own or have any interest whatsoever in any real estate?
1. If owned: When did you purchase the property? How much did the property cost? What are the mortgages encumbering it? What do you estimate the present value of the property to be? Is that the whole value or your share? How did you arrive at that value?
2. If renting: Have you ever owned the property in which you live and/or is its owner in any way related to you?
2. Have you made any transfers of any property or given any property away within the last one year period (or such longer period as applicable under state law)?
1. If yes: What did you transfer? To whom was it transferred? What did you receive in exchange? What did you do with the funds?
3. Does anyone hold property belonging to you?
1. If yes: Who holds the property and what is it? What is its value?
4. Do you have a claim against anyone or any business?
- If there are large medical debts, are the medical bills from injury?
- Are you the plaintiff in any lawsuit?
- What is the status of each case and who is representing you?
5. Are you entitled to life insurance proceeds or an inheritance as a result of someone's death?
- If yes: Please explain the details.
- If you become a beneficiary of anyone's estate within six months of the date your bankruptcy petition was filed, the trustee must be advised within ten days through your counsel of the nature and extent of the property you will receive. FRBP 1007(h)
6. Does anyone owe you money?
1. If yes: Is the money collectible? Why haven't you collected it? Who owes the money and where are they?
7. Have you made any large payments, over $600, to anyone in the past year?
8. Were federal income tax returns filed on a timely basis? When was the last return filed? Do you have copies of the federal income tax returns? At the time of the filing of your petition, were you entitled to a tax refund from the federal or state government?
1. If yes: Inquire as to amounts.
9. Do you have a bank account, either checking or savings?
1. If yes: In what banks and what were the balances as of the date you filed your petition?
10. When you filed your petition, did you have:
- any cash on hand?
- any U.S. Savings Bonds?
- any other stocks or bonds?
- any Certificates of Deposit?
- a safe deposit box in your name or in anyone else's name?
11. Do you own an automobile?
1. If yes: What is the year, make, and value? Do you owe any money on it? Is it insured?
12. Are you the owner of any cash value life insurance policies?
1. If yes: State the name of the company, face amount of the policy, cash surrender value, if any, and the beneficiaries.
13. Do you have any winning lottery tickets?
14. Do you anticipate that you might realize any property, cash or otherwise, as a result of a divorce or separation proceeding?
15. Regarding any consumer debts secured by your property, have you filed the required Statement of Intention with respect to the exemption, retention, or surrender of that secured property? Please provide a copy of the statement to the trustee. Have you performed that intention?
16. Have you been engaged in any business during the last six years?
- If yes: Where and when? What happened to the assets of the business?
In cases where debtors are engaged in business, the following questions should be considered:
- Who was responsible for maintaining financial records?
- Which of the following records were maintained?
- Where are each of the foregoing records now located?
- Who was responsible for preparing financial statements?
- How often were financial statements prepared?
- For what periods are financial statements available?
- Where are such financial statements now located?
- Was the business on a calendar year or a fiscal year?
- Were federal income tax returns filed on a timely basis? When was the last return filed?
- Do you have copies of the federal income tax returns? Who does have the copies?
- Do you have copies of the reports of such accountants? Who does have copies?
- What bank accounts were maintained within the last three years?
- Where are the bank statements and canceled checks now located?
- What insurance policies were in effect within the last year? What kind, and why?
- From whom can copies of such insurance policies be obtained?
- Is the debtor owed any outstanding accounts receivable? From whom? Are they collectible?
- Is there any inventory, property, or equipment remaining?
- Cash receipts journal
- Cash disbursements journal
- General journal
- Accounts receivable ledger
- Accounts payable ledger
- Payroll ledger
- Fixed asset ledger
- Inventory ledger
- General ledger
- Balance sheet, income statement, and cash flow statements
What Comes Next?
COURTHOUSE IN AUBURN, CALIFORNIA COURTHOUSE IN AUBURN, CALIFORNIA AFTER YOUR INITIAL MEETING:
- We will provide you with a packet to fill out including a questionnaire and a list of documents to provide.
- Once you have everything filled out and all of your requested paperwork, call the office to schedule a document review (No drop ins please).
- For the document review please bring your questionnaire and photocopies of all requested documents. You do not need to bring a copy of your ID and Social Security Card to the Document Review, only the 341 meeting.
AFTER THE DOCUMENT REVIEW
- After you have submitted all of your paperwork to our office and have paid in full (or made payment arrangements) we can prepare your petition for filing.
- After you have retained this office you may refer creditor calls to us. Use the following script, "I/We have retained a bankruptcy attorney, his name is Stephen Johnson. Please refer your future calls to him as we have been instructed not to talk to you."
- From the time your case becomes active it typically takes about 3 weeks for the petition to be ready for review and signatures. During this 3 week period we take your paperwork and turn it into your "Bankruptcy Petition" that is then filed with the court.
- In this time period, expect a few phone calls or more commonly emails from our office asking clarifying questions. Sometimes we will request additional documentation so please respond promptly to these inquiries as they will slow the completion of your petition.
THE SIGN-OFF
- When your petition has been prepared we will schedule a time for you to come into the office to review and sign your petition.
- When reviewing the petition make especially sure of the following:
- that your social security number is correct
- all of your creditors are listed
- all of your assets are disclosed
- your address is correct
- If we send you the petition by email we will then need to schedule an appointment for a sign-off.
***Note- the petition cannot be filed until it is personally reviewed and signed
- Once the petition has been signed, it will be filed electronically with the court and you will receive a case number and a court hearing date by regular mail. This notice is automatically sent by the court after the petition is filed.
AFTER FILING
- You will be notified by the court (by mail) about a week after the case has been filed informing you of the case number and the court hearing date (also known as the Meeting of Creditors or the 341 meeting).
- The court hearing is scheduled anywhere between four and six weeks from the date the petition was filed. (Your hearing is automatically scheduled by the court; if you know you will be out of town in the month following your sign-off please let us know.)
- In the time period between when you receive your 341 Meeting Notice and your court date, you will need to complete your Second Credit Counseling and fill out Official Form 23 (sent by the court). Form 23 is on the back side of the "Notice of requirement to file a certification of completion of course in personal financial management" and will look like this:
- You will want to fill out this form and either bring it with you to your 341 meeting or mail it to the court address listed on the front. If you choose to file it after your 341 meeting, go to the 3rd Floor Filing Counter to submit it (the office does not need a copy of the certificate).
- If the Form 23 is not submitted to the court, your case will be closed without a discharge. To reopen the case there is an additional fee.
***Note: It is extremely important that you check your mail frequently during this process, the court and the trustees will only communicate with you by mail.
- Some trustees will send questionnaires as part of your required documentation. The questionnaires are routine and assist in gathering additional information. Examples of trustees that send out the questionnaires are: Thomas May, Ryan Lucksinger and Fredrick Lucksinger *Check your mail regularly and call our office upon receipt.
CONTACT A LAWYER TODAY
- The 341 meeting is a very brief informal meeting between you and the bankruptcy trustee. *Your attorney Mr. Johnson or one of his associate will be at this meeting with you.
- The location of the meeting is 501 I Street Sacramento CA, 95814, 7th floor. Make sure you bring your Photo ID and Social Security Card. If you do not have both of these items your case will be continued and you will have to reappear.
- The best place to park is in the lot across the street from the courthouse. It is near the train station and Starbucks. Bring cash for the parking.
- To prepare yourself you can go onto our website to find a list of questions that the trustee may ask.
- You will want to arrive at least 15 minutes early, locate Mr. Johnson outside of the meeting room, and make sure to read the green form found in the lobby.
- The 341 meeting will have one of two outcomes: 1) The case concluded at the meeting or 2) Continued (the trustee will need more information before making their decision).
- If your case is continued, typically our office will need to amendment the petition or submit additional paperwork to the court.
- When the case is concluded expect to receive your discharge letter 2+ months from that date.
COMMONLY RECEIVED DOCUMENTS
Listed below are documents commonly mailed out by the court during the bankruptcy process.
- Relief from Stay- When the bankruptcy is filed you are automatically protected by what is called the "Bankruptcy Stay". The Bankruptcy Stay means that your creditors cannot contact you by any means in any attempt to collect debt. Secured creditors can file and be granted a "Relief from Stay" meaning they can contact you to discuss a loan you will be continuing to pay after the bankruptcy or a loan you are letting go in the bankruptcy. The hearing date set in this form is NOT something you would usually need to attend. This is an informative letter letting you know that they will be contacting you in the future to discuss your loan. *If your home is in the Foreclosure process or a vehicle is to be repossessed prior to the filing of your bankruptcy be aware that this motion would grant the lender the ability to continue the foreclosure or repossession.
- Reaffirmation Agreement- Secured creditors will send this notice to to "reaffirm" or continue paying the debt after the bankruptcy (This is most common in car loans). *If you receive one of these notices call our office to discuss the benefits vs. liability of signing one.
- Notice of No Distribution- You will receive this letter after your hearing has been concluded and it is a GOOD thing. This means that none of your assets will be sold and distributed to your unsecured creditors. It will also have a "deadline" affixed; this should be considered the 2 month date after which you will receive your Discharge.
- Request for Special Notice- A notice that a specific creditor wants to receive copies of the notices from the court. *This notice is directed to us and is nothing to worry about.
What Comes Next?
COURTHOUSE IN AUBURN, CALIFORNIA COURTHOUSE IN AUBURN, CALIFORNIA AFTER YOUR INITIAL MEETING:
- We will provide you with a packet to fill out including a questionnaire and a list of documents to provide.
- Once you have everything filled out and all of your requested paperwork, call the office to schedule a document review (No drop ins please).
- For the document review please bring your questionnaire and photocopies of all requested documents. You do not need to bring a copy of your ID and Social Security Card to the Document Review, only the 341 meeting.
AFTER THE DOCUMENT REVIEW
- After you have submitted all of your paperwork to our office and have paid in full (or made payment arrangements) we can prepare your petition for filing.
- After you have retained this office you may refer creditor calls to us. Use the following script, "I/We have retained a bankruptcy attorney, his name is Stephen Johnson. Please refer your future calls to him as we have been instructed not to talk to you."
- From the time your case becomes active it typically takes about 3 weeks for the petition to be ready for review and signatures. During this 3 week period we take your paperwork and turn it into your "Bankruptcy Petition" that is then filed with the court.
- In this time period, expect a few phone calls or more commonly emails from our office asking clarifying questions. Sometimes we will request additional documentation so please respond promptly to these inquiries as they will slow the completion of your petition.
THE SIGN-OFF
- When your petition has been prepared we will schedule a time for you to come into the office to review and sign your petition.
- When reviewing the petition make especially sure of the following:
- that your social security number is correct
- all of your creditors are listed
- all of your assets are disclosed
- your address is correct
- If we send you the petition by email we will then need to schedule an appointment for a sign-off.
***Note- the petition cannot be filed until it is personally reviewed and signed
- Once the petition has been signed, it will be filed electronically with the court and you will receive a case number and a court hearing date by regular mail. This notice is automatically sent by the court after the petition is filed.
AFTER FILING
- You will be notified by the court (by mail) about a week after the case has been filed informing you of the case number and the court hearing date (also known as the Meeting of Creditors or the 341 meeting).
- The court hearing is scheduled anywhere between four and six weeks from the date the petition was filed. (Your hearing is automatically scheduled by the court; if you know you will be out of town in the month following your sign-off please let us know.)
- In the time period between when you receive your 341 Meeting Notice and your court date, you will need to complete your Second Credit Counseling and fill out Official Form 23 (sent by the court). Form 23 is on the back side of the "Notice of requirement to file a certification of completion of course in personal financial management" and will look like this:
- You will want to fill out this form and either bring it with you to your 341 meeting or mail it to the court address listed on the front. If you choose to file it after your 341 meeting, go to the 3rd Floor Filing Counter to submit it (the office does not need a copy of the certificate).
- If the Form 23 is not submitted to the court, your case will be closed without a discharge. To reopen the case there is an additional fee.
***Note: It is extremely important that you check your mail frequently during this process, the court and the trustees will only communicate with you by mail.
- Some trustees will send questionnaires as part of your required documentation. The questionnaires are routine and assist in gathering additional information. Examples of trustees that send out the questionnaires are: Thomas May, Ryan Lucksinger and Fredrick Lucksinger *Check your mail regularly and call our office upon receipt.
CONTACT A LAWYER TODAY
- The 341 meeting is a very brief informal meeting between you and the bankruptcy trustee. *Your attorney Mr. Johnson or one of his associate will be at this meeting with you.
- The location of the meeting is 501 I Street Sacramento CA, 95814, 7th floor. Make sure you bring your Photo ID and Social Security Card. If you do not have both of these items your case will be continued and you will have to reappear.
- The best place to park is in the lot across the street from the courthouse. It is near the train station and Starbucks. Bring cash for the parking.
- To prepare yourself you can go onto our website to find a list of questions that the trustee may ask.
- You will want to arrive at least 15 minutes early, locate Mr. Johnson outside of the meeting room, and make sure to read the green form found in the lobby.
- The 341 meeting will have one of two outcomes: 1) The case concluded at the meeting or 2) Continued (the trustee will need more information before making their decision).
- If your case is continued, typically our office will need to amendment the petition or submit additional paperwork to the court.
- When the case is concluded expect to receive your discharge letter 2+ months from that date.
COMMONLY RECEIVED DOCUMENTS
Listed below are documents commonly mailed out by the court during the bankruptcy process.
- Relief from Stay- When the bankruptcy is filed you are automatically protected by what is called the "Bankruptcy Stay". The Bankruptcy Stay means that your creditors cannot contact you by any means in any attempt to collect debt. Secured creditors can file and be granted a "Relief from Stay" meaning they can contact you to discuss a loan you will be continuing to pay after the bankruptcy or a loan you are letting go in the bankruptcy. The hearing date set in this form is NOT something you would usually need to attend. This is an informative letter letting you know that they will be contacting you in the future to discuss your loan. *If your home is in the Foreclosure process or a vehicle is to be repossessed prior to the filing of your bankruptcy be aware that this motion would grant the lender the ability to continue the foreclosure or repossession.
- Reaffirmation Agreement- Secured creditors will send this notice to to "reaffirm" or continue paying the debt after the bankruptcy (This is most common in car loans). *If you receive one of these notices call our office to discuss the benefits vs. liability of signing one.
- Notice of No Distribution- You will receive this letter after your hearing has been concluded and it is a GOOD thing. This means that none of your assets will be sold and distributed to your unsecured creditors. It will also have a "deadline" affixed; this should be considered the 2 month date after which you will receive your Discharge.
- Request for Special Notice- A notice that a specific creditor wants to receive copies of the notices from the court. *This notice is directed to us and is nothing to worry about.
Life After Bankruptcy
1) WILL MY CREDIT BE RUINED FOR 10 YEARS AFTER I FILE A CHAPTER 7 ALSO SOMETIMES CALLED A CONSUMER BANKRUPTCY?
After a chapter 7 bankruptcy discharge it's relatively simple to reestablish your credit and within a short period of time (Even with the new bankruptcy laws). Bankruptcy filings are at an all-time high. The best thing to remember is when a company extends credit is bankruptcy is only one of a number of factors they consider. In addition to this:
- There are credit cards offered immediately to you at slightly higher rates.
- You will find numerous adds and mailers to finance vehicles regardless of past credit problems or bankruptcy.
- Your bankruptcy is noted on your credit report just like any other entry. It's not highlighted or in red letters.
2) CAN I KEEP MY CAR?
A chapter 7 bankruptcy offers debt relief. You are entitled to keep your car under the same terms and conditions as when you purchased the vehicle. Your personal bankruptcy, chapter 7 only discharges your obligation to the loan. You simply keep making the original payments on time or you may choose to reaffirm the debt (please see the section on reaffirmation agreements, on the bankruptcy info center's Chapter 7 Bankruptcy Overview page).
Under the bankruptcy law, if you decided to surrender the car you can arrange to do so at a convenient time soon after your bankruptcy. Please remember if you choose to surrender the car the debt or loan was discharged and the chapter 7 bankruptcy rules state that the lender has no recourse, no matter what the car might sell for.
3) DO THEY TAKE MY HOUSE?
Bankruptcy does not force a foreclosure or bankrupt your house. After a chapter 7 bankruptcy discharge you can keep your home under the same terms and conditions. It also might be a good idea to look into a loan modification after filing for bankruptcy because the house payment is usually the largest single expense a family or individual may have. Free advice and paperwork can be found at the governments website, www.makinghomeaffordable.gov
. Contrary to what you may have heard banks are doing loan modification for qualified home owners and bankruptcy can actually help by eliminating the debt that could be counted against you as a household expense.
4) WILL I LOSE MY FURNITURE AND PERSONAL PROPERTY?
Bankruptcy trustees don't care about individually valued items under $550.00 (Garage sale value). However any single piece of property over $550.00 would have been listed on your bankruptcy petition and protected. We would have used the bankruptcy exemptions, according to California bankruptcy laws (learn more about the Chapter 7 Bankruptcy Code at our Chapter 7 Bankruptcy Info Center). There are some debts secured by personal property ie, a laptop computer purchased from the maker, a purchase of a washer and dryer or a car. These debts, like your car or your house, need to be paid for or the property surrendered. It's always best to check with the office on secured debts of this kind.
Life After Bankruptcy
1) WILL MY CREDIT BE RUINED FOR 10 YEARS AFTER I FILE A CHAPTER 7 ALSO SOMETIMES CALLED A CONSUMER BANKRUPTCY?
After a chapter 7 bankruptcy discharge it's relatively simple to reestablish your credit and within a short period of time (Even with the new bankruptcy laws). Bankruptcy filings are at an all-time high. The best thing to remember is when a company extends credit is bankruptcy is only one of a number of factors they consider. In addition to this:
- There are credit cards offered immediately to you at slightly higher rates.
- You will find numerous adds and mailers to finance vehicles regardless of past credit problems or bankruptcy.
- Your bankruptcy is noted on your credit report just like any other entry. It's not highlighted or in red letters.
2) CAN I KEEP MY CAR?
A chapter 7 bankruptcy offers debt relief. You are entitled to keep your car under the same terms and conditions as when you purchased the vehicle. Your personal bankruptcy, chapter 7 only discharges your obligation to the loan. You simply keep making the original payments on time or you may choose to reaffirm the debt (please see the section on reaffirmation agreements, on the bankruptcy info center's Chapter 7 Bankruptcy Overview page).
Under the bankruptcy law, if you decided to surrender the car you can arrange to do so at a convenient time soon after your bankruptcy. Please remember if you choose to surrender the car the debt or loan was discharged and the chapter 7 bankruptcy rules state that the lender has no recourse, no matter what the car might sell for.
3) DO THEY TAKE MY HOUSE?
Bankruptcy does not force a foreclosure or bankrupt your house. After a chapter 7 bankruptcy discharge you can keep your home under the same terms and conditions. It also might be a good idea to look into a loan modification after filing for bankruptcy because the house payment is usually the largest single expense a family or individual may have. Free advice and paperwork can be found at the governments website, www.makinghomeaffordable.gov
. Contrary to what you may have heard banks are doing loan modification for qualified home owners and bankruptcy can actually help by eliminating the debt that could be counted against you as a household expense.
4) WILL I LOSE MY FURNITURE AND PERSONAL PROPERTY?
Bankruptcy trustees don't care about individually valued items under $550.00 (Garage sale value). However any single piece of property over $550.00 would have been listed on your bankruptcy petition and protected. We would have used the bankruptcy exemptions, according to California bankruptcy laws (learn more about the Chapter 7 Bankruptcy Code at our Chapter 7 Bankruptcy Info Center). There are some debts secured by personal property ie, a laptop computer purchased from the maker, a purchase of a washer and dryer or a car. These debts, like your car or your house, need to be paid for or the property surrendered. It's always best to check with the office on secured debts of this kind.
Our Location
Address: P.O. Box 244, Auburn, CA 95604
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Address:
Address: P.O. Box 244, Auburn, CA 95604
Address: P.O. Box 244, Auburn, CA 95604
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