Southern California Bankruptcy Law Blog

Category Archives: Debt

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The Economy, Reduced Work Hours, Bankruptcy

Posted in Debt

If you’ve been following the news from Wall Street, you might assume that the economy is finally improving.  For example, in the July 11, 2013 issue of The Wall Street Journal’s Market Watch, Kate Gibson reported: U.S. stocks leapt Thursday, with the S&P 500 up for a sixth day and setting a record finish, after… Continue Reading

Debt Collectors And Bankruptcy

Posted in Debt

Debt collectors serve the useful role in society of forcing many debtors who otherwise wish to pay their debts into bankruptcy.  They also provide a source of additional income for bankruptcy attorneys when they violate the automatic stay of 11 U.S.C. § 362(a), the discharge injunction of 11 U.S.C. § 524(a), and the Fair Debt… Continue Reading

A Crackdown On Abusive Debt Collectors

Posted in Chapter 11 for Individuals & Married Couples, Chapter 13, Chapter 7, Debt

An ongoing source of distress for debtors is truly abusive debt collectors.  Many of these alleged humans ignore the due process rights of debtors, lie, and break the law in their efforts to shake down debtors.  Can anything be done?  Finally, the federal and state governments are starting to take some action. I.          The Problems… Continue Reading

Hot Time: Bankruptcy For The City

Posted in Debt

Way back on October 13, 2011 I wrote about the coming wave of city bankruptcies.  I quoted several sources which predicted municipal defaults on a large scale.  If you’ve been keeping up with the news you know that the wave is starting to crest. I.          Recent California City Bankruptcies In just the last few weeks several… Continue Reading

Bankruptcy Is The Wave Of The Future – Part II

Posted in Debt

In my last post, I looked at some recent data examining the U.S.’s financial time bomb.  Is Europe facing a similar financial time bomb or can we look to it for help, inspiration, and great economic ideas? II.        The European Financial Time Bomb Returning to the U.S. Debt Clock (which I discussed in my previous post),… Continue Reading

Bankruptcy Is The Wave Of The Future – Part I

Posted in Debt

As those of you who have followed my musings know, I maintain that the western world is headed toward financial ruin.  This post updates you with recent data supporting this position. The good news is:  I also don’t see anything on the political horizon that has any hope of stopping it, so there’s no reason… Continue Reading

Debt Collectors; Sheriff’s Department Corruption; A Justice’s Nutty Opinion

Posted in Automatic Stay, Debt

This post gathers my thoughts on three eye openers.  Some were in the news, and some I experienced first-hand in my bankruptcy practice.  The common thread among these eye openers is a profound threat to the freedom and wellbeing of the citizenry. I.          Debt Collector Abuses A.        Whole Lotta Collectin’ Goin’ On In the February… Continue Reading

The 2012 Foreclosures, The World And U.S. Economies, And Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7, Debt, Foreclosure

Bankruptcy filings should surge in 2012 because the foreclosure pace is picking up speed, and because the world and U.S. economies are not headed for improvement in the near future. I.          Foreclosures In 2012 I haven’t written about foreclosure in a while, but an article in the Thursday Los Angeles Times has given me the… Continue Reading

Does A Debtor Have To Attend The Reaffirmation Hearing?

Posted in Chapter 7, Debt

A fellow attorney recently asked me this question because she had a client who failed to attend the reaffirmation hearing.  As a result, the judge disapproved the reaffirmation agreement.  She wondered if the creditor could now repossess the car.  The short answer is: Yes.  What’s going on here? I.          To Reaffirm Or Not To Reaffirm,… Continue Reading

Involuntary Bankruptcy: What Is It, And Why Would Anyone File One?

Posted in Chapter 11, Chapter 11 for Individuals & Married Couples, Chapter 7, Debt, Small Business Bankruptcy, Small Business Chapter 7

A fellow attorney, but not a bankruptcy attorney, recently asked me this question because he had a business client who wanted to use an involuntary bankruptcy filing to collect money from a judgment debtor.  To answer my colleague’s question we need a little background.  Let’s start with the concept of a voluntary bankruptcy. I.          Voluntary… Continue Reading

A Bankruptcy History Lesson

Posted in Debt

In my last post I discussed reaffirmation of debts in bankruptcy.  Near the end of the post I described some loans I had seen my clients take out with interest rates as high as 496%.  At the end of the post I said that that loan shark rate was perfectly legal and promised to tell… Continue Reading

What Is Reaffirmation?

Posted in Chapter 7, Debt

This question comes up all the time – either explicitly, or implicitly – during my consultations with prospective and current clients.  Because there is no shortage of misinformation on the subject, it’s about time I wrote on it. I.          Secured Debts In typical consumer bankruptcy practice reaffirmation comes up almost exclusively within the Chapter 7… Continue Reading

What Happens If I Forgot To List A Creditor In My Bankruptcy Papers?

Posted in Automatic Stay, Chapter 11, Chapter 13, Chapter 7, Debt

The answer differs depending on the nature of the debt and under which chapter the bankruptcy case was filed. I.          The Key Exception To Discharge The key provision of the Bankruptcy Code that we use to answer the question is 11 U.S.C. § 523(a)(3), which states (with emphasis added): A dischargeunder section 727, 1141, 1228… Continue Reading

Personal Credit Rating And National Credit Rating

Posted in Debt

In my last post I discussed the nation’s financial condition, and contrasted national bankruptcy with personal bankruptcy.  In this post I will contrast the nation’s credit rating with personal credit rating. I.          The Nation’s Credit Rating Some time ago I wrote “Bankruptcy And Your Retirement Accounts”, in which I talked about the growing problems with… Continue Reading

Personal Bankruptcy And National Bankruptcy

Posted in Debt

If you’re considering filing for bankruptcy protection, you’re not alone.  Large numbers of your fellow citizens are thinking the same thoughts.  And large numbers have already filed for bankruptcy protection this year – I’ll give you the exact number later in this post.  But what about the nation as a whole?  How is it doing?… Continue Reading