California Bankruptcy Definitions & Tips:
A few of the more common words and phrases used by the California bankruptcy courts are included in following list. Be aware of
variations between common usage, as compared to legal definitions derived from statutes, case interpretations,
and local customs.
New bankruptcy laws are now pending before the U.S. Congress. Governor Schwarzenegger is expected to endorse
the proposed amendments. Because of the rapid increase in national filings, these new laws specifically target
consumer cases which account for approximately 99% of all cases filed. Filing qualifications will become more
difficult.
Recent changes and amendments in California bankruptcy courts include: 1) Notice to Attorneys 03-09 - Notice of Amended Official
California Bankruptcy Forms and Amendments to Bankruptcy Rules Effective December 1, 2003, 2) Notice to Attorneys
03-08 - Notice of electronic availability of case file information dated 11/14/03, 3) Notice to Attorneys 03-07
regarding privacy changes effective December 1, 2003, and 4) Notice to Attorneys 03-06 regarding privacy
changes effective December 1, 2003.
The California Bankruptcy Courts adopted new statutory limits (dollar amounts) within Title 11 of the U.S.
Code. Section 109(e) - the allowable debt limit for unsecured debt is increased to $307,675. The allowable
debt limit for secured liabilities is increased to $922,975. The minimum aggregate claims need to commence an
involuntary petition under Section 303(b) is increased to $12,300. Exemptions provided by Section 522 are also
increased. The maximum value of homestead equity that may be claimed is increased to $18,450. Other exemption
increases include paragraphs (2) through (8). Luxury goods and services obtained within 60 days before filing
are nondischargeble, if exceeding the newly amended amount of $1,225. These amounts are adjusted automatically
by California bankruptcy courts every three years.
Back to California Bankruptcy Court directory page.
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