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Douglas Gist Farquhar

Douglas Farquhar’s Answers

75 total


  • My husbands electrical contracting business went chapter 7 bankrupt, can builder he did work for sue us?

    Husband expanded his business to a corporation and took on partners, after 3 years the business went ch 7 bankrupt and closed down (8 years ago), We continue to receive lawsuit papers (some delivered to our door) from the new construction builder...

    Douglas’s Answer

    I agree with the others to get an attorney right away. It sounds like you personally guaranteed some debt(s) for the Corp. and though the Corp. is bankrupt, you are still on the hook for these debts.

    If the creditors sue you personally then you will need to answer the suit and defend it and you will need an attorney to help you with that. Don't let them get a default judgment against you.

    Of course if the debts are large enough to justify a personal bankruptcy then the bankruptcy discharge should get you personally of the hook for the debts (as long as they are dischargeable debts).
    (619) 702-5015. farquharesq@yahoo.com

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  • Why hasn't a civil default judgment from 2006 ever shown up on my credit reports?

    A debt buyer/collection company obtained a civil default judgment in Tulare County Superior Court after a suit in late 2006, stemming from an alleged credit card debt. The judgment has been on file with their Clerk's office since early 2007. There...

    Douglas’s Answer

    I agree that you can call the court and find out what is going on with that lawsuit. You would then know the amount and to whom you owe the money. If it is a collection agency then you could contact them or the attorney to see what the underlying debt is for.

    If you do not owe then you could atempt to re-open the case and try to set aside the verdict because you were not properly served. You would need an attorney to this because it would be difficult to do yourself.

    If you do owe the money then you could settle it with them, pay it, or consider filing a bankruptcy if your overall debt is large enough.
    (619) 702-5015

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  • In a bankruptcy my car

    My car If I paid 16kl and now owe 13k and the care is worth 13k and I want to keep it and I'm doing my BK myself do I list the care as exempt or creditor holding secured claim or real property I'm confused and I lv in Calif. This is the only thg ...

    Douglas’s Answer

    I agree to hire an attorney and don't risk getting your case dismissed. Attorneys have special software that includes everything and files your case electronically. Plus you get legal advice on what to do and what not to do in your bankruptcy.

    As far as this car is concerned though it looks like there is no equity currently in it if your figures are correct. Therefore there is nothing to exempt but the creditor and the car must be listed correctly in the bankruptcy schedules. Contact an attoney for help.

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  • Retain vs. Reaffirm

    I have a financed car that I want to keep, and I understand that I can retain it or reaffirm it. However, I am hearing that if I retain it and keep the payments current, the lender will now repossess. Supposedly there was a change in law or poli...

    Douglas’s Answer

    It is true that most auto loan companies will allow you to retain and pay which means that if you keep the payments current then you can keep the car. It is also true that Ford notoriously does not allow this option but most others do.

    The best thing to do is to file and list it as "retain and pay", let the creditor contact your attorney, and then discuss it with the creditor what they will allow. It depends too if the payments have been made on time and how recently the car was purchased prior to the bankruptcy.

    It is a good idea to have an attorney on the case though and they can deal with the creditor and advise you on the wisdom of doing a reaffirmation agreement.
    (619) 702-5015. farquharesq@yahoo.com

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  • 2nd mortgage in chapter 7

    Foreclosure 3 1/2 years ago and 2nd mortgage never contacted me. I still have them in my credit history as I owe them. I am trying to file chapter 7. should I put it in even they don't come after me?

    Douglas’s Answer

    • Selected as best answer

    I agree that you list the second mortgage in your chapter 7 bankruptcy. They could still be looking to collect from you but if the debt is listed it will be discharged and they cannot come after you.

    What you don't know now is whether the second mortgage holder was a "sold out junior" lien holder. If they were and the took nothing in the foreclosure then they could come after you for payment of the second. If they were paid something in the foreclosure then you are probably safe unless you signed some document where you agreed to pay. (I have seen this with some of my clients).

    The safe and smart thing to do is list it so you will have no uncertainty here. It can't hurt you and can only help you. Please also get a bankruptcy attorney to help you with the bankruptcy because bankruptcy is a difficult thing to do by yourself.
    (619) 702-5015. farquharesq@yahoo.com

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  • Return car.

    i bought a new nissan altima in 2006.(7year loan!) It was bought together with girlfriend. Fast forward to today. I am going to file bankrupsy ch 7. The car has 150k miles. Tranny is giving problem. I owe 6200on it. My girlfiend drives the...

    Douglas’s Answer

    It does sound like she will be on the hook. You said "She only has the car on her credit". This sounds like she signed onto the loan and she is therefore liable for it. She will therefore probably still be liable for it after your bankruptcy. She will then have to file a bankruptcy too, or pay the balance, or settle with them, or let them come after her (which I don't recommend).

    You could help her pay for it but if you turn it in now and you alone file for bankruptcy then the creditor will sell the car, probably get very little for it, and then come after her for the balance (if she is indeed on the loan).

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  • Can you file bankruptcy without California driver license Filing bankruptcy

    Can you file chapter 7 without California ID card

    Douglas’s Answer

    I agree that a passport would work but you can also get a state of California issued ID that is just that and not a drvers license. It would be issued by the state for ID purposes.

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  • Rights of a collection agency

    I received a summons from a collection agency, after speaking with them I was told I can not speak to the lawyer who is on the court papers? I am trying to set up a payment with them, but they can not tell me whether or not the suit will be dropp...

    Douglas’s Answer

    I agree with the civil procedures discussed above but depending upon the size of this debt (and any other debts you may have) I always advise people to consider if bankruptcy could help. It will wipe away the debt without having to fight it any further and without having to pay to fight it any further.

    If bankruptcy is not a good option then you could proceed with the civil procedure tactics outlined above. I would consult an attorney to help you decide which course is right for you.

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  • I want to close our LLC but she doesn't want to. What should I do?

    My partner and I have LLC but have so much debt and I want to file bankruptcy to get out of this situation. But she is not giving me any information about how much we owe to our vendors or any lease information. She took all of the information wit...

    Douglas’s Answer

    • Selected as best answer

    Do you have any info. related to the debts of the company? You probably are personally liable for those debts. Most vendors and landlords require a personal guarantee. A bankrupcy would get you personally off the hook for those debts. The creditors, including the landlord, would then have to look to your partner or the assets of the LLC itself for payment. But this would not be bad for you if you want to close the LLC anyway.

    If you have the creditor info. then they can all be listed and notified in your personal bankruptcy. You need an attorney to look at this one though as there are many issues here especially if your partner is determined not to cooperate with you and you truly don't know who your creditors are. There are ways to compel her to provide the info.

    Douglas G. Farquhar, Esq., San Diego bankruptcy attorney. (619) 702-5015, E-mail: farquharesq@yahoo.com.

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  • Can the State of California take my 18 year old vehicle that is not worth much to satisfy unpaid income taxes?

    My car is missing and I'm trying to rule out the possibility that it was taken from the State of Ca for unpaid income taxes.

    Douglas’s Answer

    I would call the Franchise tax board. I agree that it is unlikely that they took it but this way you could find out for sure. If they did not take it you might want to call the police because it might be stolen. It also might be impounded if you parked illegally. The police should know about that too so I would call them.

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