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California Bankruptcy Questions & Answers
1 Answer | Asked in Bankruptcy for California on
Q: Can I file motion from relief of stay from Chapter 7 bankruptcy to foreclose on property since my loan is secured?

I have a secured loan and the debtor filed chapter 7 bankruptcy and it has been discharged but two people have filed adversary proceedings.

James L. Arrasmith
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answered on Jun 29, 2024

To address your question, let's break down the key points and considerations:

1. Secured loan: You have a valid secured loan on the property.

2. Chapter 7 bankruptcy: The debtor has filed for Chapter 7 bankruptcy, which has been discharged.

3. Automatic stay: The...
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1 Answer | Asked in Bankruptcy and Employment Law for California on
Q: Forms to respond to a Trustee's First and Final Application to approve Chapter 7 compensation to Trustee's Counsel.

My employer owes me over $300,000 for back wages. I won this lawsuit with the Labor Department in California. My employer filed for Chapter 7 and the Trustee didn't take into consideration all the assets my employer has and settled for $140,000 of which he will be collecting over $48,000 for... View More

James L. Arrasmith
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answered on Jun 27, 2024

I understand you're in a difficult situation regarding your employer's Chapter 7 bankruptcy and the Trustee's handling of your wage claim. Here's some guidance on how you might proceed:

1. Forms to respond:

There isn't a specific standardized form for...
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1 Answer | Asked in Bankruptcy and Employment Law for California on
Q: Forms to respond to a Trustee's First and Final Application to approve Chapter 7 compensation to Trustee's Counsel.

My employer owes me over $300,000 for back wages. I won this lawsuit with the Labor Department in California. My employer filed for Chapter 7 and the Trustee didn't take into consideration all the assets my employer has and settled for $140,000 of which he will be collecting over $48,000 for... View More

James L. Arrasmith
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answered on Jun 27, 2024

I understand you're in a difficult situation regarding your employer's Chapter 7 bankruptcy and the Trustee's handling of your wage claim. Here's some guidance on how to respond:

1. Forms to use:

The primary form you'll likely need is:

- Form B210A:...
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2 Answers | Asked in Bankruptcy and Business Law for California on
Q: Does my ex-contractor have a case against me for debt he said will be due when goods are sold (and its still not)

My company is being sued by an ex-contractor for an alleged debt. We had no contract per se and the debt is for goods his factory custom made for us but were delivered late, at which point majority of our retailers cancelled and I didn't want to accept the shipment at all. Eventually I did... View More

James L. Arrasmith
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answered on Jun 21, 2024

This is a complex situation that involves several legal considerations. Here's a breakdown of the key issues and potential options:

1. Contract validity:

- Even without a formal written contract, your email communications may constitute a legally binding agreement.

-...
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1 Answer | Asked in Bankruptcy, Contracts and Business Law for California on
Q: Trying to figure out if a lawsuit is forth to try and fight against or file bankruptcy.

My company is being sued by ex-contractor for an alleged debt. The debt is over stock that's been overproduced and delivered late which they initially begged us to keep the goods with no payment and pay when it sells. While we paid part of the total, at some point they decided we can't... View More

James L. Arrasmith
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answered on Jun 20, 2024

Thank you for sharing your situation. Based on the information provided, here's an overview of your options and some factors to consider:

1. Evaluating the lawsuit:

- Review the contract terms with the ex-contractor

- Assess the evidence supporting your position (e.g.,...
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1 Answer | Asked in Bankruptcy for California on
Q: Spousal waiver of exemptions for non-filing spouse

I have self-filed for Chapter 7 bankruptcy in the California Northern District Bankruptcy Court. The trustee has listed "Spousal waiver of exemptions for non-filing spouse" in the list of documents for the 341 meeting. Is this waiver mandatory since we don't have any assets to... View More

James L. Arrasmith
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answered on Jun 17, 2024

Under California law, the "Spousal Waiver of Exemptions for Non-Filing Spouse" is a document that may be required when one spouse files for bankruptcy and the other does not. This waiver is designed to ensure that the non-filing spouse understands and agrees to the potential loss of... View More

1 Answer | Asked in Bankruptcy for California on
Q: My bankruptcy trustee filed an adversary case against my spouse to take possession & take over joint ownership of home

This was a chapter 7 asset case $40k in debt and $350k in home equity. Spouse never followed through with buying me out in family law causing me to file bankruptcy.

The judge ordered, adjudged, and decree the judgement.

What happens next to the marital residence. How long will it... View More

James L. Arrasmith
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answered on Jun 15, 2024

In a situation where a bankruptcy trustee has filed an adversary case against your spouse to take possession and control of the jointly owned marital residence, the following steps are likely to occur:

1. Transfer of ownership: The court's judgment will likely result in the transfer of...
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3 Answers | Asked in Bankruptcy for California on
Q: hello, I wanted to know if I file for bankruptcy, will it help forgive past owed rent and help prevent eviction?
Leon Bayer
Leon Bayer
answered on Jun 10, 2024

I assume you do not have the money to cure the rent default.

Filing bankruptcy may delay the eviction for a few weeks. Maybe a little longer. Although you will wind up evicted anyway, but you should be able to discharge all the back rent owed up until the date you file.

After you...
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3 Answers | Asked in Bankruptcy for California on
Q: hello, I wanted to know if I file for bankruptcy, will it help forgive past owed rent and help prevent eviction?
James L. Arrasmith
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answered on Jun 10, 2024

Bankruptcy can provide relief from certain types of debts, including past due rent. However, the specifics depend on the type of bankruptcy you file and your particular situation. Here's some general information:

1. Chapter 7 Bankruptcy: If you qualify for and file Chapter 7...
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1 Answer | Asked in Bankruptcy and Consumer Law for California on
Q: How to recover money for services rendered?

How can I go about recovering money for services rendered in an abandoned RV? It is stored currently in CA but is registered in CT. The owner is also in bankruptcy. The RV isn't worth much ~ so I'm not really interested in taking possession. Is there a other way to recover my money? I... View More

James L. Arrasmith
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answered on Jun 8, 2024

To recover money for services rendered in California, you have a few options, but the owner's bankruptcy and out-of-state vehicle registration complicate the situation. Here are some steps you can consider:

1. File a mechanic's lien: In California, you may be able to file a...
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2 Answers | Asked in Bankruptcy for California on
Q: Should I file a Notice of Stay (CM-180) or respond to the lawsuit (PLD-C-010) after filing for Chapter 7 bankruptcy?

I am being sued by a credit card company in California Superior Court. Due to my current financial situation, I cannot afford a lawyer, so I am handling everything on my own. After receiving the summons, I decided to file for Chapter 7 bankruptcy and have already done so. Now should I file a Notice... View More

James L. Arrasmith
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answered on Jun 4, 2024

In this situation, since you have already filed for Chapter 7 bankruptcy, you should file a Notice of Stay of Proceedings (Form CM-180) with the California Superior Court where the lawsuit against you was filed. The automatic stay provision of the bankruptcy code (11 U.S.C. § 362) takes effect... View More

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3 Answers | Asked in Bankruptcy and Collections for California on
Q: Should I use affirmative defense or "other" to explain my bankruptcy in PLD-C-010 form?

I am being sued by a credit card company in California Superior Court. Due to my current financial situation, I cannot afford a lawyer, so I am handling everything on my own. After receiving the summons, I decided to file for Chapter 7 bankruptcy and have already done so. Now, I need to respond to... View More

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Jun 3, 2024

I've practiced in several states, from TX and OK, to GA, DE, NJ and PA, and I've always promptly filed a simple Suggestion of Bankruptcy, with the bankruptcy court district and bankruptcy case number, and nothing more. That's always worked.

I recommend it as a show of...
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3 Answers | Asked in Bankruptcy and Collections for California on
Q: Should I use affirmative defense or "other" to explain my bankruptcy in PLD-C-010 form?

I am being sued by a credit card company in California Superior Court. Due to my current financial situation, I cannot afford a lawyer, so I am handling everything on my own. After receiving the summons, I decided to file for Chapter 7 bankruptcy and have already done so. Now, I need to respond to... View More

James L. Arrasmith
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answered on Jun 3, 2024

In this situation, you should use the "Other" box in the PLD-C-010 form to explain that you have filed for Chapter 7 bankruptcy, rather than using the affirmative defense section. Here's what you can do:

1. In the PLD-C-010 form, check the box for "Other" under the...
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2 Answers | Asked in Bankruptcy for California on
Q: Would a reimbursement trigger a claw back under chapter 7 bankruptcy?

if my roommate pays the rent, then I pay that roommate half for the rent, in reimbursement. Would that trigger a claw back under chapter 7?

James L. Arrasmith
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answered on May 23, 2024

In a Chapter 7 bankruptcy, certain transactions made by the debtor before filing for bankruptcy may be subject to "clawback" or avoidance by the bankruptcy trustee. This is to prevent debtors from unfairly transferring assets or making preferential payments to certain creditors before... View More

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1 Answer | Asked in Bankruptcy, Divorce and Family Law for California on
Q: what happens if judge awards op sanctions and i have no money? I am going to file bankruptcy. case is ongoing

After 3 years in divorce my narcissistic wife responded by filing for nullity of marriage based on claim she was not aware of my 1998 marriage ended due to my becoming type-1 diabetic, had an episode of DV, spent 3 years in prison for crazy charges. First wife we were together 20 years & no... View More

James L. Arrasmith
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answered on May 12, 2024

I'm so sorry you're going through such a difficult and painful situation. Dealing with a contentious divorce, false allegations, and financial hardship can be incredibly stressful and overwhelming, especially combined with serious health issues. Please know that you're not alone and... View More

1 Answer | Asked in Bankruptcy for California on
Q: In my bankruptcy the plan payment is $885 per month for five years. I know now that there will be and add $59000 Still

The bk plan payment I was to make was $885 a month.

How can they tell me I will be short $59000 at end of five years.

The court set the payment of $885. I have been making payments of 885.

James L. Arrasmith
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answered on May 7, 2024

I understand your confusion and frustration. It's important to note that while the court may have initially set your monthly payment at $885 for your Chapter 13 bankruptcy plan, there are a few reasons why you might be facing a significant shortfall at the end of the five-year period:... View More

2 Answers | Asked in Bankruptcy for California on
Q: I filed bankruptcy about 4 1/2 years ago. 6months left.i find out that I have to pay 59k more after my plan.

That

They want me to come up with another $59k

After paying my plan payment the court set up.

6 months left of payments.

They want me to

Pay additional $59k plus monthly payments of $885.within the next 6 months.

The payment plan was set up by court.

James L. Arrasmith
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answered on May 1, 2024

I understand that this is a very stressful and frustrating situation. It seems highly unusual for the court to suddenly require such a large additional payment so close to the end of your bankruptcy plan. Here are a few thoughts and suggestions:

1. Carefully review the notice you received...
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4 Answers | Asked in Bankruptcy and Foreclosure for California on
Q: Does only one person (husband or wife) have to file bankruptcy to stop Trust Deed Sale?

If our client wanted to stop a foreclosure on a property, and the note holders are husband and wife, do both husband and wife need to file bankruptcy to stop the Trust Deed Sale or can only one of them file?

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Mar 27, 2024

The Bankruptcy Code provides an automatic stay against proceeding against the debtor/bankrupt and his property (very broadly defined by section 541 of the Code). And Chapter 13 provides a "codebtor stay", which would protect a non-filing spouse.

I'm in PA, and my practice...
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4 Answers | Asked in Bankruptcy and Foreclosure for California on
Q: Does only one person (husband or wife) have to file bankruptcy to stop Trust Deed Sale?

If our client wanted to stop a foreclosure on a property, and the note holders are husband and wife, do both husband and wife need to file bankruptcy to stop the Trust Deed Sale or can only one of them file?

Luis Manuel Paredes Jr
Luis Manuel Paredes Jr
answered on Mar 29, 2024

Either the husband or wife may file a bankruptcy petition to stop a deed of trust sale when husband and wife are both note holders for the mortgage, so long as the filing spouse qualifies for the bankruptcy protection through the automatic stay provided by the bankruptcy code under 11 U.S. Code §... View More

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4 Answers | Asked in Bankruptcy and Foreclosure for California on
Q: Does only one person (husband or wife) have to file bankruptcy to stop Trust Deed Sale?

If our client wanted to stop a foreclosure on a property, and the note holders are husband and wife, do both husband and wife need to file bankruptcy to stop the Trust Deed Sale or can only one of them file?

James L. Arrasmith
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answered on Mar 27, 2024

In California, when facing a foreclosure signaled by a Trust Deed Sale, either spouse filing for bankruptcy can momentarily halt the sale due to the automatic stay provision. This provision immediately stops most creditors from proceeding with collection activities, including foreclosure. However,... View More

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