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"California Small Business Bankruptcy"

Small business status is permitted in California bankruptcy cases filed under Chapter 11. By qualifying as a small business, court appearances and approvals may be combined into concurrent hearings, and the court may reduce statutory waiting periods required generally in Chapter 11 cases.

11 U.S.C. §101(51C): 'small business'' means a person engaged in commercial or business activities (but does not include a person whose primary activity is the business of owning or operating real property and activities incidental thereto) whose aggregate noncontingent liquidated secured and unsecured debts as of the date of the petition do not exceed $2,000,000

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.

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