How to kick out a squatter from your home or condo in California. If police won’t remove them then you must evict.

I have written several blogs about the squatter phenomenon in America and around the world today.  There is a whole squatter movement that preaches that squatters have the right to occupy vacant homes.  As I wrote in a previous blog………..many groups are pushing the “housing as a human right” philosophy and encouraging people to take over homes that are unoccupied.  They seem to feel entitled to these homes because they believe the banks were responsible for the financial meltdown.  Whatever the justification the squatter movement is leading to a situation where vacant homes are being occupied.

It is common now that a bank will foreclose on and take back a home only to have it remain empty for a period.  During this period the squatter moves in.  A hapless individual buyer may then purchase the home in the foreclosure sale or from a middle man.  The homeowner would then be presented with the squatter problem.  He may not have been told by the bank and the bank may not have known themselves about the squatter’s existence.  Some squatters don’t make their occupation obvious.

Now the problem is that of the current owner.  These squatters can be angry, violent and have been known to attack owners or property managers inspecting property.  The people inspecting may have no idea that the squatter was there.  I reported on this in a previous blog: http://bit.ly/Iyo3g4 .

The squatters rights movement is made all the more possible and widespread by the foreclosure crisis in America which left this large number of homes vacant.  The reality is that someone does own these homes.  They are either owned by the bank or by some business or individual.  Eventually someone, either as owner or renter, will legally attempt to occupy it.  If there is a squatter in there then this could be a problem.  At that point it does not matter if the squatter is just a lone criminal or someone spurred on by a political movement.  He is now the homeowner’s problem.

Many squatters present phony, fraudulent rental agreements to anyone attempting to challenge their occupation of the premises.  This present a problem because there is an appearance of legitimacy created by the phony document.  This is enough to ward off the police who view this as a legal dispute which needs to be heard in court.  In California the police will therefore probably refuse to get involved when called and tell you to get an attorney and evict the squatter.

This is what I recommend too.  A client of mine just told me he has a squatter in his condo and I told him the same thing.  He needs to evict the squatter immediately.  The squatter should be given a 3 day notice to pay rent or quit (or a 3 day notice to vacate the premises because there is not rental agreement or agreed upon rent amount).  The notice must be delivered properly and done in the proper format in case the squatter gets a tenants rights lawyer.  In California tenants have many rights and as landlord you must be sure to do everything correctly.

Once the 3 day notice is created, signed and delivered personally or by what is called “post and mail” then the 3 days must elapse before you file and eviction.  Post and mail means you post a copy and mail a copy to the resident/squatter.  You may not know the squatter’s name so that creates another problem too.  Now you file the eviction and serve it with a process-server on the squatter.

The next step is defaulting the squatter if he does not answer but if he does then you have to set the case for trial.  If he does not show at trial then you get a default judgement and if he does then you must show that you own the property or you are an agent of the owner.  If you own the subject property then you can go in at that point and say to the judge that this is a squatter with no legal rights/lease/rental agreement.  Let the squatter show his phony lease to the judge.  It is unlikely to hold up in court.  If it does then you can object and at least demand rent be paid.  Be sure to be ready to testify to how long you believe the squatter has occupied the premises so you can demand rent for that whole period.

Chances are the whole thing will break down before this point and you will win.  I do recommend a good tenant’s attorney though because these are complicated procedures that need to be done correctly.  Remember that “self-help” is not allowed in California and this is the proper legal process if the police will not remove the squatter in the first place.

I am a San Diego bankruptcy attorney.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com for more info. about any of these topics.  Or call my office for a free consultation at (619) 702-5015.  Call now for free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

A new wave of foreclosures is expected while housing prices decline for 6th staight month. What does it mean?

According to an article in Smart Money last month foreclosure sales are still flooding the real estate market in America.  35% of all home sales in January were foreclosed homes or for short sales.  This amounts to 91,100 properties in January and this number was up 29% from the month before.

The head of a real estate research firm predicted that this will cause a decrease in prices for homes in the next year.  Statistics have indeed showed that the median home price has declined 8.5% since June of 2011.  This same analyst predicted in the article that home prices are going to go down for a long time to come.

In the city of  Las Vegas foreclosures accounted for 59% of all sales and in Sacramento 50% according analysis done by RealtyTrac.  Other cities have similar statistics.  There is a huge number of foreclosures coming back to the banks currently and these foreclosures are then going back on the market for sale.  This flood of foreclosures will continue to press home prices lower in the future according to analysts.

This is exactly what an article in Yahoo Finance stated yesterday.  According to that article home prices dropped for the 6th straight month in a row.  The Case-Shiller housing price index reports that housing prices dropped in February in 16 out of the 20 cities tracked.  Atlanta, Chicago and Cleveland saw the worst declines while San Diego and Phoenix saw price increases.  This represents a 35% decline in home prices since the recession hit and home prices are now at 2002 levels.

Another article came out in Reuters that a new wave of foreclosures is expected.  In that article they predict that 2012 will be a bigger year for foreclosures than 2011.  Just when you thought it was over.  But it is not over.  Many in the article predict a growing number of foreclosures ahead.  They point to the statistics that show that many major banks and many major cities are showing a rise in foreclosures.

The Reuters article points out that the toxic mortgages are now gone.  Sub-prime, and balloon payments, and negative amortization mortgages have been foreclosed on or short sold and are no longer in effect.  Now we have regular mortgages that are being foreclosed on.  Mortgages with normal interest rates and fixed rates for 30 years.  Mortgages that are owned by regular working families.  Families who are extremely responsible but still can’t afford the mortgage.

These people are being stressed now.  They cannot afford the mortgages I argue because the price of everything is going up especially food and energy which are not counted in government inflation statistics.  That is what I argue in this blog http://bit.ly/HUNMNJ .

But it is clear that the housing/foreclosure is not ending but may get worse and be with us for some time.  I believe that we underestimated the depth of the crisis from the beginning.  I had realtor tell me years ago that this was serious.  At a realtors convention he was told to expect 10 years of depressed prices in real estate.

The amount of foreclosures is astounding and these all have to be put on the market at some time and they will depress it.  Indeed there appears to be a shadow market of these homes that the banks are holding off the market as I argue here  http://bit.ly/IUF0k0.  When these homes are put on the market instead of being kept off, prices could decline further.

So with home prices declining, foreclosures increasing, and prices of living increasing we have a perfectly bad storm it appears.  The government printing of money and the resulting devaluation of currency is increasing prices of food and energy so that people can’t afford their homes.  This stresses their finances so they cannot afford their homes which leads to more foreclosures and more homes on the market.  We seem to be in a downward spiral economically.  Don’t expect housing prices to go up anytime soon.  It is also a good time to take care of unneeded unsecured debt do you can afford to pay for your home.

I am a San Diego bankruptcy attorney.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com for more info. about any of these topics.  Or call my office for a free consultation at (619) 702-5015.  Call now for a free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Debtors prison end run in California and elsewhere. Beware “Contempt of Court” and the Debtors exam.

Numerous articles are appearing recently about debtors prisons and whether a debtor can be thrown in jail for owing money to private individuals.  Debtors prisons were written about by Charles Dickens they were outlawed in the 1800s in America and we all thought debtors prisons were gone for good.

It seemed like a good idea a long time ago to not put people in jail for owing money to private individuals.  It appears that they have resurfaced in some state as I blogged about here  http://bit.ly/HPAMsQ  and here http://bit.ly/JmsMFt

I also blogged about how in the California constitution people could not be jailed for owing private debts here  http://bit.ly/I9TkYh .  This California constitutional prohibition of debtors prison seems to solve the problem in this state and we can rest easy because that is just other states that jail people for debts right?  Wrong.

I received comments on my blogs that related real life situations where people had been put in jail for owing debts here in California.  I also researched the issue some more and spoke to other attorneys to see what they were facing.  It appears that in the end judges can do an end run around this prohibition on debtors prisons  They do this with the contempt of court citation and the debtors exam.

A contempt of court citation comes if a judge issues a valid order to pay a debt, and the debtor has notice o the order, and then he debtor willfully fails to comply with the order.  The the debtor can then be jailed.  This comes up most commonly in child support cases where a party is ordered to pay and does not when it has been determined that he or she has the ability to pay.  I would argue though that this is an end run around the debtors prison prohibition because child support is a debt owed to a private individual.  Your ex is not a public agency.

In a number of other states creditors like credit card companies or other creditors have gone to court and moved judges to somehow issue these orders to pay.  When the debtors failed to pay the judge jailed them for contempt.  Some didn’t even have notice as the Sheriff showed up at their door one day and carted them away to jail.  (So such for the notice requirement).  These creditors have circumvented the laws, used the court to collect their private debts, and reinstituted debtors prisons.

I have not heard of these types of creditors getting judges to give them such orders for credit card type debt yet in California but I would not put it past them to try in the future.  For now the contempt of court citations seem to be limited to child support and unpaid court fines.  I don’t expect it to stay that way forever as word gets out of what other states are doing.

But remember always that a creditor in California can get you into a debtors exams. They have similar proceedings in other states.  These debtors exams are bad things all the way around for debtors to attend.  If a debtor is summoned to attend a debtors exam by a creditor the debtor must attend and a warning appears on the summons that failure to appear will result in an arrest warrant for the debtor.  So there is the first way that debtors exams can land you in jail for a private debt by failure to appear at a debtors exam.

This is exactly what happened to a debtor in Pennsylvania according to a blog I read online.  There a debtor failed to attend a deposition session for a type of debtor’s exam at a lawyer’s office and the lawyer immediately filed motions to have the debtor arrested which he was.  This same tactic could be used here in California if a debtor misses a debtors exam.  An arrest warrant will be issued for failure to attend the debtors exam or violation of a court order or contempt.  Creditors are aggressive and they will try anything to get around the California constitution.

If a debtor attends a debtor’s exam then he or she is required to answer questions under penalty of perjury.  These questions are very intrusive and they relate to the debtors entire financial situation.  All sort of personal questions about income, assets, and bank accounts could be asked for the purpose of getting the debtor to pay the debt.  If assets and income is uncovered in these exams then it is possible that the creditors could move for some kind of court order to force payment of the debts.  Violation of that order could also land a debtor in jail.  Debtors prison again.

There is a great way to avoid debtors exam, debts, and creditors though.  That would be to file bankruptcy.  A bankruptcy filing will stay the collection procedures for all dischargeable debts and a discharge will mean that the debtor is off the hook for the debt.  I filed a bankruptcy for a client the night before his debtors exam and he went the next day and the judge through the whole case out because of the bankruptcy stay.

If bankruptcy is unavailable there is the Fair Debt Collection Practices Act (FDCPA) that establishes procedures that debt collectors must file or face sanctions.  Contact an attorney for advice on FDCPA or bankruptcy.

I am a San Diego bankruptcy attorney.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com for more info. about any of these topics.  Or call my office for a free consultation at (619) 702-5015.  Call now for free credit report and analysis!  For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Update on home squatters. They have turned into a full fledged political movement!

The squatter phenomenon that began with current recession and is reminiscent of the great depression is still going strong according to an article in “In These Times”.  Squatters are people who move into vacant homes and refuse to get out until someone evicts them or pays them.  There are plenty of these homes to choose from now in California and many other states due to the ongoing foreclosure crisis.  These squatters are often violent, angry, and sometimes hardened criminals.

In an article about a case right here in San Diego a squatter moved into a foreclosed home and refused to get out until he was paid $25,000 for “cash for keys”.  Banks rarely pay former homeowners more than $5000 for this.  This squatter was arrested fortunately but many others are not.  Another article in FOX 5 News told of a Broker that has been attacked by violent squatters when he was checking on a vacant home for a client.

I wrote in a previous blog ( http://bit.ly/JdF7ea ) what a big headache it is for a homeowner when a squatter moves in and takes over the property.  In the end you may have to pay for an eviction the because the cops don’t want to get involved in a legal dispute between you and the squatter.  This is especially true when the squatters create phony rental agreements to say that they have a legal right to occupy your property.  During the eviction process the homeowner has to support the squatters by paying the bills for the home until the eviction is over and the sheriff comes to throw them out.

These realities are the same for a bank which takes over a foreclosed home that a squatter moves into. And worse it can happen to an investor who buys a foreclosed home at a foreclosure sale.  They may try to move in but find that someone has beaten them to it and that someone may have one of these phony rental agreements.  Then a legal eviction would be required to remove the squatters.  Of course once the eviction is finalized the homeowners will find a completely ruined, trashed, and vandalized homes.  Indeed some of these homes are gutted by the squatters.

Technically these people are trespassers but it is difficult to prove that when they have the lies and phony rental agreements.  Cops won’t remove them in these circumstances and owners have to go through the legal process of eviction.  I used to do evictions in San Diego and I know what a mess they can be especially if the squatters hire an attorney who can fight and delay the process.

Worse than this though is the phenomenon written about in the “In These Times” article.  This is the political movement that is growing up around these squatters and their takeover of these vacant homes.  In the article they talk about a woman who has occupied a vacant home in Chicago’s south side with the help of a group called “Liberate the south side”.  The article states that this group “targets vacant homes for reoccupation”.  The home apparently had been vacant and the group put money into renovating the home.

The article points out that this is happening across the nation in cities like Chicago, New York, and Minneapolis (and apparently here in San Diego too).  And it is also a global movement.  They talk about highly organized groups with “squatting offices” in Spain where they coordinate squatting for squatters.  Similar movements are happening in Ireland too.

These political movements are much more disconcerting than the individual criminal squatters that occupy and then extort.  Law enforcement can take care of them more easily but large groups of squatters who hold sit-ins, occupy homes in large numbers, and refuse to get out can be much more dangerous.  They hold up signs  and they come up with names like “sovereign women of the republic of california” or “poor people’s economic human rights campaign” .

I wrote about these groups in a previous blog (http://bit.ly/I5nsoT ).  They are now buoyed by the Occupy movement and they are now and were then calling housing a “human right”.  I presume that this means to them that houses should be free or supplied by the government like health care and eventually everything else.  If these people were to get their way and occupy these homes permanently then what about everyone else who is paying rent?  Won’t they want their free housing?

In my previous blog I warned about the reality of  what really happens when houses are occupied by squatters.  First of all utilities are shut off because they are not provided for free so squatters often live in the dark and cold with overflowing toilets and they still refuse to get out.  Some of these could move into your vacant home sometime before you can find a renter so be wary!  If the have a political movement behind them demanding free housing because it is their “human right” them they could be even more difficult to get out of your home.

I recommend anyone with any kind of vacant property check their home regularly to see of this is happening.  If the entire neighborhood is vacant then it is even more dangerous because no neighbors are there to watch. Be on the lookout for squatters!

I am a San Diego bankruptcy attorney.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

San Diego unemployment rises in March as does American food stamp usage. What does it all mean?

Here in my city of San Diego unemployment has increased in March much to everyone’s surprise. This was detailed in an article in the San Diego Union Tribune.  This fact certainly calls into question whether there is a recovery occurring at all in San Diego.  According to the article San Diego would need to add 20,000 to 25,000 jobs per year but only 6,700 are currently being added.  This is far short of what is needed for a full recovery according to some economists.

This article also explains that California unemployment is on the rise.  California unemployment rose to 11% in March.  18,000 jobs were created in California in March and that may sound like a lot but 2 million people still are unemployed in the state.  They also mention in the article that nationwide there seems to ba a decrease in unemployment.  I would argue thought that this nationwide rise in employment looks good but must be balanced against other factors. (See here for my blog on unemployment is rising when the governement says it is not).

For instance the Wall Street Journal reports that 34 million people are on food stamps currently and that is an all time high.  This represents an increase of 70% since 2007 and 1 person in 7 is now on food stamps.  A 70% increase is significant and calls into question the state of the economy as a whole.  Are these people receiving food stamps unemployed or are they people with jobs? Are the employed (or underemployed) getting on food stamps because they can’t afford to buy food with their salaries?

Another article in Investor’s Business Daily tells of an increase in the number of people on disability.  Are suddenly getting more disabled in this country or is something else happening?

I believe something else is happening.  First of all more people are out of the work force than ever according to recent articles.  As they come back into the work force this could increase unemployment.  But also you have this massive over-spending by government and “quantitative easing” or straight money printing.  As I argued in a blog (http://bit.ly/I9XMnU) about governments like the Weimar Republic who choose to print money,  massive money printing can only lead to massive devaluation of the currency.  This devaluation in turn leads to a huge increase in the prices of foodstuffs.

We are seeing prices go up dramatically in the past two years especially in the area of food and energy.  I also blogged about this phenomenon some time ago  ( http://bit.ly/IahMZf).  These increases in food have even caused farmland to increase in prices.  There was a story today on Fox Business how farmland is currently selling for very high prices when it just recently used to be very cheap.  It only makes sense that this is happening because food is a commodity that is increasing in price so it will become more profitable to produce in the future.  It is also true that food and energy are increasing but government inflation figures do not reflect this because they conveniently exclude food and energy from inflation measures.

So it appears that prices are up and currency values are down and unemployment is sideways.  It is also true that government figures usually don’t reflect real world conditions.  This is why I belive that people are getting on food stamps and disability.  Even if they are employed full-time they cannot afford the ever higher prices for everything today.  Even two income couples are struggling especially if there are kids.

The underemployed and unemployed are even in a worse condition than the employed.  But employed people on food stamps in these large numbers is a new phenomenon in America.  It used to be that you got off food stamps as soon as you got a job.  I suspect that is not the case today.  People are staying on food stamps no matter what because they simply can’t afford the ordinary costs of life.  The food stamp statistics reflect this reality.

My clients who I see in my office every single day also reflect these changes in society.  They come to see the bankruptcy attorney  to get out of their old debt which they certainly can’t afford.  They can barely afford their current expenses as commodity prices increase but their wages do not.  For my clients bankruptcy can eliminate the old debt and make it easier to go forward.

We do not know if there is a recovery but there are other economic factors out there affecting everyday people.  With prices on the rise and the government not admitting it I expect to see many more bankruptcies in the future out of necessity.  It is not a matter anymore that is even subject to debate.  Many of my clients do not anymore debate whether it is worth it to file bankruptcy.  It is literally a case of having enough food on the table.  Food that will undoubtably cost more next month.

I am a San Diego bankruptcy attorney.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.  Call now for a free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

The economy might be improving. It therefore might be a good time to file bankruptcy.

The economy appears as if it might be improving.  If this is true the in a better economy it is more likely that you will obtain a better paying job.  Therefore it might e a good time to file for bankruptcy before you get this job and you become “means tested”out of a chapter 7 bankruptcy.

Believe it or not many people wait too long to file and then they cannot file because they earn too much income or they receive too much property.  If you might get a job with a moderate to high income in the near future they it would be advisable to file for bankruptcy now when you have an underpaid job or if you are altogether unemployed.  You should only file of course if you have large debts you cannot currently pay.   (See here for my website article on why you should file for bankruptcy).

There is a  problem with waiting to file for bankruptcy though.  When you get a good job you may get enough income to survive and pay your bills.  his is a good thing but your income may be too much for you to easily file for bankruptcy.  There is a thing called the means test which will force you to pay back your debts in a chapter 13 if you make too much money.  The artificiality of the means test may create a situation where on paper you have enough money to pay back our debts but in reality you do not.

The means test may show extra income in your household when you look in your account and see none.  That is when you will wish you had filed for bankruptcy and rid yourself of your debts when you could have with no problem.  Don’t let those debts follow you into your new life.  Those old credit card debts are usually attributable to your borrowing money to survive when things were very bad.  They usually do not reflect a wasteful or luxurious lifestyle but mere borrowing to survive.

Also remember that if you are going to receive some property by will, trust, winnings, or gift then that too may make it harder to file for bankruptcy.  This is also true if your home or other asset will increase in value.  Better to file now before these things happen.

Why then let these old debts impact your future life after you come out of the bad times.  You will need the money you will earn from you job to pay for your family’s expenses.  Don’t wait until you get too much income or assets that will push you out of bankruptcy.  Excercise your federal right to file for bankruptcy and rid yourself of these old debts.  Get a fresh start but do it now while you can and your income is low and your assests are few.  You do not know what the future holds.

I am a San Diego bankruptcy attorney.  For more information please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Common bankruptcy myth- Everyone will find out if I file- No they won’t!

Even though a bankruptcy filing is public information, it is rare that anyone finds out that you have filed bankruptcy.  Your friends and family and neighbors will probably never know unless you tell them.  It is rare that people check the reports of who filed for bankruptcy.  Unless someone runs your credit, then it is unlikely that anyone will find out that you filed.

In San Diego the filings are listed in the “Daily Transcript” but not too many people read that paper.  Your employer will not be notified and he or she will probably never find out because an employer rarely runs your credit once you are hired.

Your employer cannot fire you if he does find out you filed as that is illegal.  If you have some secret security clearance that presumes you will not file then that would be an exception but you should be able to ascertain this from your employer contract.  Most people though do not have these security clearances.

Your landlord will also rarely find out because he also will not run your credit once you rent from him.  You can continue to rent from your landlord after a bankruptcy without a problem.  If he or she does find out that you filed bankruptcy it is illegal to evict you or discriminate against you in any way because of the bankruptcy.

Your friends and family also do not have to know unless you tell them.  In fact you can keep this financial decision private if you choose.  And your lawyer is not going to tell anyone because he is bound by client confidentiality.

Some people believe that everyone will find out if they file bankruptcy and that simply is not true.  Your secret will remain safe if you wish it to and usually no one will find out unless you tell them.  Once you file and rid yourself of unpayable debt you will just notice that you have eased your stress load and you have more money to pay your bills.  So go ahead and file and experience the freedom, liberation, and fresh start that bankruptcy can provide!

I am a bankruptcy attorney in San Diego.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.

Call now for free credit report and analysis!  For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Landlord notification and bankruptcy

Your landlord will not be notified if you file bankruptcy in most cases.  That is because most people have month to month tenancies.  In these cases there is nothing to report.  There is no asset in the bankruptcy estate that is created or affected by a month to month tenancy.  Your landlord is not notified and you keep on renting and residing in your unit right through and after the bankruptcy.

If you have a lease then the lease is technically an asset of the bankruptcy estate that the trustee could sell to another party.  The reality is that residential leases rarely have any value to anyone so the trustee will not take any action when the lease is reported.  In those cases the landlords are notified of the bankruptcy and the lease is broken at the point of filing the bankruptcy.

Now as a tenant you can decide if you want to sign a new lease or continue living in the premises as a month to month tenant. The landlord though cannot evict you for filing bankruptcy as this would be bankruptcy discrimination and that is not allowed. If you are a good tenant and pay your rent and don’t make noise then in the vast majority of cases the landlords will not care if you stay on and continue renting.

Before I was a bankruptcy attorney I handled evictions for landlords.  Good quiet tenants who pay their rent and don’t disrupt other tenants simply don’t get evicted.  Landlords want these tenants to remain because they are sometimes hard to come by.  So pay your rent and don’t disturb the “quiet enjoyment” of the other tenants in the building and you will not get evicted for anything.

Remember that a landlord will not even know you filed if you have a month to mont.  With a lease he will need to be notified but then you are protected because he can’t discriminate against you for exercising your federal right to file for bankruptcy.  The remember too that if you are a good tenant it is unlikely that the landlord id even looking to evict you.

So don’t despair.  You can file bankruptcy and be safe in your home, condo, or apartment.

I am a San Diego bankruptcy attorney.  Please visit my website for further information at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.  Call now for free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Good news for tenants! You can wipe out most debt related to your tenancy in bankruptcy!

Tenants often get saddled with debts they cannot pay after renting a house, condo, or apartment.  There are debts for back rent, unpaid utilities, damages to the premises, or unpaid security deposits.  All of these types of debts are dischargeable in a bankruptcy usually with no problem.  A landlord would have to prove fraud or willful and malicious damage to his premises to get these debts to be not dischargeable in bankruptcy.

In some cases there can even be a huge debt left over if you vacate the premises early in a lease.  If you sign a lease for a year and vacate after six months the landlord can sue you for the other six months of the lease.  This can be substantial.  Many of my clients have signed a 10 year lease for a commercial space and then quickly vacated when their businesses failed.  The  landlords then sued and got judgements in excess of $300,000.  These clients quickly filed for bankruptcy and discharged this debt without any trouble and we didn’t ever see the landlords show up at the 341 hearing.

Landlords often threaten you with paying for these debts but just mention the word bankruptcy.  There is nothing they can do once you file bankruptcy if there is no fraud or willful and malicious damage.  So don’t worry when they threaten you with lawsuits.  One of my commercial clients was called to a debtor’s exam about his huge debt for his broken lease.  He showed up with his bankruptcy papers in hand.  The lawyer stuttered and stammered and when she went to the judge he laughed and said she would have to seek redress in bankruptcy court.  We got his discharge and never heard from them again.

Landlords are supposed to make every attempt to re-rent the premises you vacate when you break your lease.  We usually don’t know if they even bother to do this though.  It’s called mitigation of damages.  If the landlord tries but can’t re-rent your vacated premises then you are still liable for the unpaid rent if you don’t file bankruptcy.

Even a debt of $300,000 goes away easily in bankruptcy so don’t worry.  If you are a residential tenant who has a much smaller debt from a few months of back rent then that can be put in the bankruptcy too along with your credit card debts, medical debts, and any other dischargeable debts you may have.

Don’t let a landlord bully of threaten you with a big bill because bankruptcy will wipe it out.  Don’t let them threaten you with a lawsuit either.  A bankruptcy will also stop an eviction and force the landlord to seek a motion for relief from stay before he can remove you from the premises.  If you need more time to vacate the premises then bankruptcy give you extra time to move.

I believe that bankruptcy’s main value is in wiping out those old debts so call a bankruptcy attorney today if you have debts related to a tenancy.

I am a San Diego bankruptcy attorney.  For further information please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.  Call now for free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Bankruptcy Good News! Because of bankruptcy exemptions you can usually keep all of your possessions after filing for bankruptcy!

Most people are afraid to file bankruptcy because they wrongly believe that they will have to surrender some or all of their possessions once they go bankrupt.  This is not true and has not been true for hundreds of years.  You will usually not have to surrender any possessions after filing bankruptcy in the vast majority of cases.  This is all because of the magic of bankruptcy exemptions and these exemptions have an interesting history.

When you file for bankruptcy a bankruptcy estate is automatically created which includes all of a debtor’s possessions.  These possessions could be sold by a bankruptcy trustee if it were not for the magical exemptions.  Exemptions allow debtors to take their property outside of the bankruptcy estate and keep it for themselves.  A Trustee cannot touch any properly exempted property.  This is what makes bankruptcy so attractive to you when your debt load gets excessively high.

Long ago it was true in England that a debtor had to give up all of his possessions to file for bankruptcy.  This included literally the shirt on his back.  In those days bankruptcy laws required a debtor to turn over all of his clothes to his creditors.  This resulted in public breaches of the peace.  A judge in old England responded with the very first bankruptcy exemption.

This was an exemption for the debtor’s one suit of clothes.  It allowed the debtor to keep his clothes so he would not be forced to break the public nudity laws.  Judges could simply not allow a situation where a person exercised their legal right to file for bankruptcy but in doing so were forced to break another law which was the law against public nudity.

That old decision started the ball rolling and bankruptcy exemptions have been expanding ever since.  Cooking implements were added and then furniture.  Homes were later included in exemptions so people could have a place to live and not forced to be homeless by bankruptcy.  Vehicles were added so debtors could get to work as were tools of the trade,  jewelry, as well as a few others.  In addition to these exemptions at some point in America we added a blanket “wild card” exemption into which a debtor can fit property of any kind.

Currently this wild card exemption is over $23,000.  In it you can protect cash, stocks, bonds, jewelry, collectibles, or any kind of property you see fit.  This is a very generous exemption and it is why most people can keep most of their property in a bankruptcy.  Most of my clients historically do not have assets in excess of this amount and therefore they can file bankruptcy and get rid of most of their debts and they can usually keep all of their assets.

So that is good news for you if you are considering filing for bankruptcy.  Don’t worry about your property.  Just contact a bankruptcy lawyer before you file to get your property properly exempted and you can move on debt free after your bankruptcy discharges.

I am a San Diego bankruptcy attorney.  Please visit my website for more information at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.