David A. Arietta Law Offices

03/03/2026

You can generally keep your home in a California business bankruptcy, especially if it is a corporate filing that does not include your personal assets. If filing personally, California's generous homestead exemption ($300,000–$678,391+) protects significant equity, allowing most homeowners to retain their homes.

Key Considerations for Keeping Your Home:

Corporate vs. Personal Filing: If only your business files for bankruptcy (e.g., Corp), your personal home is usually not part of the bankruptcy estate.

California Homestead Exemption: If you file for personal bankruptcy (Chapter 7 or 13), this exemption protects your equity. As of 2023-2025, this covers between $300,000 and over $600,000 in equity, depending on your county's median home price.

Chapter 7 Bankruptcy: You can keep your home if your equity is fully exempt, or if you have no equity.

Chapter 13 Bankruptcy: Allows you to keep your home by paying non-exempt equity value to creditors through a 3-5 year repayment plan.

Mortgage Payments: Bankruptcy does not remove liens. You must continue making mortgage payments to avoid foreclosure by the lender.

SBA or Personal Guarantees: If you pledged your home as collateral for a business loan (e.g., SBA loan), that creditor has a security interest that can follow you into bankruptcy.

If you have questions about bankruptcy, call David A. Arietta at (925) 472-8000.

05/22/2025

In 2025, you cannot legally remove a bankruptcy from your credit report before the designated time unless the information is inaccurate or misreported. Under the Fair Credit Reporting Act (FCRA), a Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date, while a Chapter 13 bankruptcy stays for 7 years. https://ariettalaw.com/2025/05/can-you-legally-remove-bankruptcy-from-a-credit-report-in-2025/

03/20/2025

Went to a program last night presented by Gus Kramer Contra Costa County assessor. Still feeling feeling the effects of prop 19, which voters approved on November 3, 2021 . One key take away is that children who are trying to qualify for the reassessment exclusion for inheriting their residence from parents must file a homeowners exemption within three years of the date of death.

02/04/2025

If you come into the bankruptcy process and intend to keep your home, you are free to keep your home after the bankruptcy – as long as you continue to pay the mortgage and related obligations such as property taxes, insurance, and HOA dues, if applicable.

Hopefully the bankruptcy freed you of all the rest of your debt so that you will then be able to afford the mortgage payments more easily and thereby keeping your house. However, your income could change and you may not be able to afford your mortgage payments.

One of the most common questions that I am asked when I sit down with prospective business bankruptcy clients living in the greater Bay Area region of California is “Will my house be affected by the corporate business bankruptcy filing?” In most situations, the answer is “no”. The fi

01/29/2025

The California homestead exemption: Covers equity in a primary residence up to a maximum amount of $722,502.

The exact amount depends on countywide median sale price for a single-family home. In the Bay Area most debtors will be entitled to the maximum exemption amount as the median sale price is higher than $722,502.

Equity is calculated by taking the market value and subtracting outstanding mortgages and liens. The property must be your residence which means you physically reside there when you file for bankruptcy relief and intend to live there.

https://ariettalaw.com/2022/02/can-i-keep-my-home-after-filing-bankruptcy/

Commercial, rental or vacation properties are not protected by the homestead exemption. We recommend getting a valuation of your property before filing for bankruptcy relief.

01/28/2025

Whether you file for chapter 7 bankruptcy relief or for chapter 13 bankruptcy relief, bankruptcy law allows you to keep certain assets (called "exempt assets").

Non-exempt assets need proper pre-bankruptcy planning to avoid them being turned over to a bankruptcy trustee and sold for the benefit of your creditors in a chapter 7 or alternatively making you pay more than you want to in a chapter 13. Most people considering bankruptcy should have some general idea about what they are allowed to keep.

https://ariettalaw.com/2022/02/can-i-keep-my-home-after-filing-bankruptcy/

Keeping your home is often the biggest worry about filing for bankruptcy. With proper planning most debtors can keep their home without any problems.

01/01/2025

The 30% increase in small retail bankruptcies in 2023 highlights several challenges that have culminated in financial distress for these businesses. Below are some key factors contributing to this rise:

1. EXECUTIVE MISSTEPS
Overexpansion: Many small retailers pursued aggressive growth strategies post-pandemic, leading to over-leveraging and financial strain.

Failure to Adapt: Resistance to digital transformation or delayed adoption of e-commerce platforms left some retailers unable to compete in an increasingly online retail landscape.

Poor Inventory Management: Misjudging consumer demand led to overstocking or stockouts, both of which damaged cash flow.

Pricing Strategies: Inconsistent pricing strategies, especially during periods of inflation, alienated customers and reduced profitability.

https://ariettalaw.com/2023/12/small-retail-bankruptcy-executive-missteps-to-pandemic-related-shutdowns-up-30-in-2023/

12/30/2024

Small Business Administration (SBA) loans and Economic Injury Disaster Loans (EIDL) can have a significant impact on business bankruptcies, particularly because these loans are often structured differently than other types of business financing. Here's how they factor in:

SBA AND EIDL LOANS AS SECURED DEBT
Collateral Requirements: SBA loans, including EIDLs over $25,000, often require collateral (e.g., real estate, business equipment, or other assets). If a business files for bankruptcy, the SBA has a secured claim on the collateral, meaning they get paid first from the sale of these assets in bankruptcy.

Personal Guarantees: Many SBA loans require personal guarantees. If the business cannot repay the debt in bankruptcy, the lender (or SBA) can pursue the guarantor's personal assets, depending on the bankruptcy type.

https://ariettalaw.com/2024/12/how-do-sba-and-edil-loans-factor-into-business-bankruptcies/

12/27/2024

The number of retailers filing for bankruptcy has nearly doubled compared to 2023, with 45 filings so far in 2024, up from 25 in the previous year. Over 2,000 store closures have been announced across the U.S., affecting major chains such as Family Dollar, CVS Health, Big Lots, and Walgreens.

Notable Retailer Bankruptcies:
The Container Store: Filed for Chapter 11 bankruptcy protection in December 2024, citing declining consumer spending on home remodeling and increased competition from retail giants.

Party City: After emerging from bankruptcy in September 2023, Party City is reportedly considering a second bankruptcy filing due to ongoing financial struggles.

Rue21: The teen clothing retailer filed for Chapter 11 bankruptcy for the third time in May 2024, leading to the closure of all its remaining 540 stores nationwide.

https://ariettalaw.com/2024/12/in-2024-the-retail-sector-has-experienced-significant-turbulence-and-increased-bankruptcies/

11/22/2023

Some comparisons and costs to review between chapter 7 vs chapter 13 bankruptcy.

COMPARISON: The two most common types of bankruptcy are Chapter 7 and Chapter 13. Both Chapter 13 and Chapter 7 bankruptcies come with their own costs and considerations.

11/01/2023

A few situations when you need to strategically file bankruptcy.

When you lose your job. How much you make is one of the first questions asked of prospective bankruptcy clients.