| NEW HIGHER HOMESTEAD EXEMPTION IN CALIFORNIA A common mis-conception that we hear from potential clients consulting our firm for the first time is that their home would be sold if they file bankruptcy. This is not the case if the available equity in a debtor’s home is exempt from liquidation. Congress allows each state to determine what the residents of the state may keep when filing bankruptcy (exemptions from liquidation) if a state “opts out” of the federal exemption system. California created not one, but two, sets of exemptions, which have long been reputed to be the most generous in the country. However, the benefits to debtors of California’s once-generous homestead exemption have steadily eroded, as property values in this state climbed. Even rare periodic adjustments failed to keep up with California’s soaring property values. Until now. On September 15, 2020, Governor Gavin Newsom signed into law Assembly Bill 1885 which dramatically increases the homestead exemption for personal residences in California. The new law is effective for cases filed on or after January 1, 2020. The new homestead exemption is increased significantly to $300,000. — but may increase up to $600,000. based on the median sale price of single-family homes within the county where the debtor resides. For those residents of Orange County, and Los Angeles County, this means that the exemption will increase by up to eight times in some cases. The increased homestead exemption will also be annually indexed to keep pace with future inflation. This is all very good news for beleaguered California homeowners who are facing increased financial pressure due to the pandemic and social unrest all but shutting down the California economy. At the Law Offices of Kaufman & Kaufman, we are proud that an attorney — not a paralegal — will review our clients’ financial situations, to determine and advise the best course of action, including both bankruptcy and non-bankruptcy alternatives. Disclaimer The information contained in this weblog (blog) is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state. the content of this weblog (blog) contains general information and may not reflect current legal developments, verdicts, or settlements. The Law Offices of Kaufman & Kaufman disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this weblog (blog). link BREAKING NEWS FROM WASHINGTON Today the President signed into law four bipartisan, bicameral bills passed by Congress:H.R. 2336, the “Family Farmer Relief Act of 2019,” which increases the debt limit used to determine whether a family farmer is eligible for relief under chapter 12 of the Bankruptcy Code; H.R. 2938, the “Honoring American Veterans in Extreme Need Act of 2019” (HAVEN Act) which excludes from the calculation of monthly income, for purposes of the Bankruptcy Code’s means test, certain benefits paid by the Department of Veterans Affairs and the Department of Defense; H.R. 3304, the “National Guard and Reservists Debt Relief Extension Act of 2019,” which extends for 4 years, through December 18, 2023, the exemption from certain bankruptcy means-testing for members of the National Guard and reservists of the Armed Forces; and H.R. 3311, the “Small Business Reorganization Act of 2019,” which establishes a subchapter within chapter 11 of the Bankruptcy Code under which small business debtors can reorganize using more simplified and expedited procedures. link Debtor Electronic Bankruptcy Noticing History As Been Made…..The Bankruptcy court recently announced a new pilot project aimed at speeding up notices from the Bankruptcy Court to debtors. The Bankruptcy Court selected certain law firms handling bankruptcy cases to assist with the testing of a pilot program called & DebtorElectronic Bankruptcy Noticing; or DeBN & DeBN allows debtors to elect to receive entered orders and court-generated notices by email instead of by regular mail.Only four bankruptcy courts are participating in this pilot program and California-Central is one of them. Kaufman & Kaufman became the first bankruptcy firm to participate in the DeBN Project at the U.S Bankruptcy Court California-Central Location. Our bankruptcy office was also the first to electronically-file the DeBN form on-line for our client. So, we made HISTORY! This is a huge step in our ability to use the electronic system to our clients' advantage — allowing our clients to receive notices from the court far more rapidly than via the US postal service. The ability for the debtor to receive court orders and court- generated notices by email has several advantages: Its fast – Debtors receive court orders and court-generated notices the same day that their attorney does.Its convenient – Debtors can read and/or save the court orders and notices on their mobile device, iPad, and home computer. Its free – Court orders and court-generated notices can be viewed an unlimited number of times on the debtor's mobile device or home computer at no charge. Its green – less paper clutter. To request more information to use this services to file your Kaufman. We are located at 1001 N Ross St Santa Ana, CA. #ocbankruptcy #occourts #ocbk #ocattorneyLikeCommentlink STEPS TO FILE BANKRUPTCY Orange County, CaThere are a number of steps which must be completed before your bankruptcy protection begins A Petition must be prepared and filed with the Bankruptcy Court, along with Schedules and attachments, including a Means Test and Certificate of Completion of Pre-Petition Credit Counseling.Prior to filing it is important to gather the information necessary to complete a Bankruptcy Petition. The best source for information regarding your assets and creditors is your own records. You may also find it helpful to obtain a credit report to refresh your recollection as to your creditors. YOU DO NOTNEED TO SUBMIT COPIES OF YOUR BILLS.Evaluation of the information including your assets and creditors, and available exemptions, will assist in determining whether you need to file a bankruptcy case, and if so, which chapter(s) you may file.Once prepared and carefully reviewed, the Petition is signed under penalty of perjury, and filed with the Bankruptcy Court. About 30 days after your Petition is filed, you are required to attend an administrative hearing. This is conducted by an appointed Trustee (not a judge). At the hearing you will be sworn in, and examined on the information under oath by the appointed Trustee, and you may also be called upon to submit documents or supporting information.Prior to your Meeting of Creditors, you are required to submit to the trustee a copy of your Federal income tax return for the most recent tax year ending immediately before the commencement of the case, for which a Federal income tax return was filed (You have the option of providing a transcript of your return instead).You are also required to produce certain personal identification at your hearing, including government-issued photo identification and evidence of your Social Security number. Some Trustees also require you to submit additional information prior to the hearing. Attorneys charge different amounts for filing a bankruptcy. Some attorneys charge a flat-fee, while others may add charges for services performed later, some attorneys charge hourly.Some attorneys who charge reduced rates will not appear with you at your hearing and will instead hire an "appearance attorney" or a "contract attorney" to "sit in" for them at your hearing. Be sure to ask your prospective attorney if they use "contract attorneys".Some attorneys who charge reduced rates will not themselves perform all of the professional services on your case, but may instead use "paralegals" to do the work on their behalf. Be sure to ask your prospective attorney if they use "paralegals".In some cases there are some services which are not included in the initial retainer fee you may pay. Although rare, in the event that a Motion for Relief from Stay, or another form of adversary proceeding is filed against you by a creditor, or the trustee; or if you wish to remove a lien against exempt property, or appear at a reaffirmation hearing, additional fees may be required if you wish a lawyer to represent you in such actions. Some firms say they "will take payments". However all fees must be paid before your case is filed (except in a Chapter 13). So ask your prospective attorney if they will allow you to make payments after your case is filed — not likely. |