California Debt Collection Blog

In our last entry, we began the discussion of ways to minimize the risk of debtors filing bankruptcy following entering into a payment plan or structured settlement.  There, we focused on the importance of preserving all claims and elements of non-dischargeability (see Bankruptcy Code §523) in the settlement agreement.  Here, we focus on one way that creditors can deter debtors from attempting to wipe out legitimate debts by filing bankruptcy.  We have assisted many clients in Orange County, Los Angeles County, Riverside County and throughout California in collecting debt by ...

Creditors often enter into structured settlement agreements without ever giving heed to the possibility of bankruptcy.  This is an unfortunate, albeit common mistake that I have witnessed first-hand from clients in Orange County and elsewhere in California.  The defendant may enter into a settlement agreement, make a few payments, and then decide to stop making payments and file for bankruptcy.  Unless the debt is one that would be considered non-dischargeable under Bankruptcy Code §523, then there is a high probability that it will be discharged and the creditor will be unable ...

In February 2015, the California Senate introduced and began reviewing a bill which, if passed, would make significant changes to the exemption laws relating to bankruptcy in the state. The proposed changes in SB 308 appear to favor judgment debtors and may make it more challenging for judgment creditors to collect debts. Most notably, the bill would make changes to the homestead exemption. Existing law, CCP §704.730, provides that during bankruptcy proceedings, up to $175,000 of equity in a homestead can be exempted, and thus unreachable by the bankruptcy trustee and ...