CA CLS Bankruptcy cheat sheet
CA CLS Bankruptcy · Keep the key ideas within reach.
Bankruptcy Law Fundamentals (CA CLS)
Automatic stay under 11 U.S.C. §362 arises upon filing and enjoins creditor collection, foreclosure, and lien enforcement against the debtor and estate property.
Chapter 7 liquidation: nonexempt assets collected and reduced to cash by trustee; individual debtor receives discharge unless barred by §727 (e.g., prior discharge within 8 years, fraud).
Chapter 13 adjustment of debts: individual with regular income and unsecured debts under $465,275 and secured debts under $1,395,875 (amounts adjusted periodically) may propose a 3- to 5-year plan.
Chapter 11 reorganization: debtor in possession retains control unless a trustee is appointed; exclusivity period for filing plan is 120 days, extendable to 18 months.
Means test under §707(b): current monthly income compared to state median; if above median, disposable income calculation determines presumption of abuse in Chapter 7.
Property of the estate under §541 includes all legal or equitable interests of the debtor in property as of the commencement of the case, plus certain post-petition acquisitions.
Exemptions: California has opted out of federal exemptions; debtors choose between CCP §703.140 (wildcard) and CCP §704.730 (homestead) systems.
Discharge under §524(a) voids personal liability on discharged debts and permanently enjoins creditors from attempting to collect them as personal liabilities.
Priority claims under §507 include domestic support obligations, administrative expenses, and certain taxes; they are paid before general unsecured claims.