Legal Question in Bankruptcy in California

It's best to get all the answers--not just some--and best to contact a local San Diego bankruptcy attorney.

A motion for relief from stay is applicable to secured debt. As far as omissions in the bankruptcy schedules, it is incumbent upon the bankruptcy debtor to list all debts and DBA's should be properly listed on the Chapter 7 Voluntary Petition. Good bankruptcy counsel ensures there are no errors. However, for it to ultimately be an issue, a bankruptcy error must be material--i.e. it must be something that substantially affects the big picture. Mere incurrence of debt is not fraud, nor are harmless errors in a debtor's bankruptcy petition. In bankruptcy court, there is a high burden of proof to prove fraud (e.g. incurrence of debt on the basis of misrepresentation), which entails substantial litigation on the part of the creditor. Objections made in bad faith or on the basis of immaterial matters may expose the creditor to damages payable to the bankruptcy debtor. The Bankruptcy Code favors the granting of relief for the debtor. Debt relief in bankruptcy is a privilege--not an absolute right, but it cannot be denied arbitrarily or without merit.

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn�t address all facts & implications of the question; it�s general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it�s independent of other answers. It may be time sensitive, as in past the �Use by� date: laws and case law change. Hire legal counsel before acting or refraining from bankruptcy/legal action.