Legal Question in Bankruptcy in California

Re: Listing of creditor on bankruptcy scheduals

Assuming it's a credit card debt of some sort, it would be on Schedule F. Make sure to gather the fax numbers of the sheriff and your employer, and immediately send them a letter with a copy of your official BK notice to stop the wage garnishment. Good luck!

Re: Listing of creditor on bankruptcy scheduals

probably F ... it depends on whether the creditor has a perfected security interest in something you own (in which case it would go on D) or if the debt can be classified as a "priority" (govt agencies, support arrears, taxes, some others) it would go on E.

If its just a judgment on credit card debt (or something similar) I would list it on F. Some might argue that if the Judgment has been recorded and you own real estate, the debt is secured by the real estate. But the lien is avoidable in that case and absent some other reason to increase the secured debt, F should be fine.

Re: Listing of creditor on bankruptcy scheduals

The judgment creditor may have filed an Abstract of Judgment or some other judgment lien against your property. If so, it would go on Schedule D. Otherwise, it would most likely go on Schedule F unless it was the type of Debt specifically on Schedule D such as an order for spousal support.

When you file the bankruptcy, make sure you send a copy to the sheriff's department so they can release the garnishment. The sheriff may be holding money that hasn't been released to the judgment creditor. Make sure you list this as an asset in your bankruptcy petition. It may also be possible to recover some of the money that has already been withheld because it is a preferential transfer. You should also file California Judicial Council Form No. CM-180 (Notice of Stay) in ever lawsuit filed against you, regardless of whether or not there has been a judgment entered.

You will also need to disclose information regarding any lawsuits on question 4 of the Statement of Financial Affairs.

You really should get an attorney to guide you through all of this.