Sting Exposes Unlicensed Contractors in California

10News.com - News - Sting Exposes Unlicensed Contractors:

The Contractors State License Board ("CSLB") urges consumers to follow these tips when dealing with a building contractor:

• Hire only licensed contractors and ask to see the license
• Don't rush into decisions and don't hire the first contractor who comes along
• Be especially hesitant when approached by someone offering home improvement services door-to-door, especially when they will use material they claim is left over from another job
• Verify the contractor's license by checking online at www.cslb.ca.gov or via CSLB's automated phone service at 1-800-321-CSLB (2752)
• Don't pay more than 10 percemt down or $1,000, whichever is less
• Don't pay cash, and don't let the payments get ahead of the work
• Get three bids, check references, and a written contract
• Contact the CSLB if you have a complaint against a contractor

Vehicle Repair Liens in California

Question: We are a small body shop in California. We released a car that we had repaired to a customer with a balance of $453.80 in April. We have received no payment from the customer since May and have received numerous excuses of why he cannot pay the balance of $187.82. He signed a contract agreeing to pay $125 every other week until the balance was paid in full. The contract he signed contains a clause that states we retain the right to have a lien on the vehicle. We have mailed a certified return receipt demand letter for the balance owed received an angry phone call but no payment. Since the car has left our shop, can we legally repossess the vehicle and what is the proper procedure to follow?

Answer: You do not have any lien rights on this vehicle. In California, the legal requirements for an automobile mechanic or body shop to assert a lien for unpaid repairs is governed by Civil Code Section 3068. Your biggest problem is that the lien is based on possession of the vehicle, so you lost any lien rights you may have had when you released it back to the customer.

Your lien begin when you present the registered owner a written statement of the charges or 15 day after the work is complete, whichever occurs first. There are further steps that must be taken under the code and failure to act quickly could result in the loss of lien rights.

Although you have lost your lien rights, you still have the option of suing the owner in small claims. With a small claims judgment, you can assert a judgment lien on the car or other assets of the debtor. For more information on small claims, please visit my website.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

The Eviction Process - California Department Of Consumer Affairs

The Eviction Process - California Department Of Consumer Affairs

In some areas of California law, a high percentage of lawsuits involve parties trying to represent themselves because of the high cost of legal fees. Eviction lawsuits are one example where this commonly occurs. If a tenant is not paying rent, that person most likely cannot afford an attorney but will often fight an eviction lawsuit with the help of forms available from the local legal aid office. Likewise, some landlords cannot afford to hire attorneys to collect what is sometimes a relatively small amount of rent owed. Some landlords will try to handle the eviction themselves.

Eviction lawsuits are handled much more quickly than most civil lawsuits. To protect the due process rights of the tenants, eviction lawsuits (also called "unlawful detainer" actions) are subject to very strict and technical procedural rules that are difficult to follow without the assistance of legal counsel.

To assist landlords, the California Department of Consumer Affairs has developed a surprisingly informative website discussing the basic procedures of the eviction process. Although it is not meant as a substitute for qualified legal advice, it serves as a good starting part for confused landlords and tenants.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

The Federal Trade Commission's Web Wite on Credit

The FTC's web site on Credit

Almost every day, you're involved in some type of financial transaction requiring an educated decision. This site has information for you, whether you’re shopping for a mortgage or auto loan, checking the accuracy of your credit report, dealing with debt collectors, or looking for ways to protect your personal financial information.

Credit is much more than a piece of plastic, and the resources on this site can help you become a more savvy consumer. You’ll also find compliance requirements for businesses, and information about the FTC’s recent law enforcement actions.

How to Dispute Credit Report Errors

How to Dispute Credit Report Errors

The Federal Trade Commission ("FTC") offers a very informative website that instructs consumers on how to obtain a free credit report so that can dispute inaccurate entries on their credit reports. The FTC even provides a sample letter that you can send to the credit reporting agencies (Equifax, Experian and Transunion) to dispute inaccurate entries.

You should dispute any inaccurate entries in writing and provide supporting documentation. The credit reporting agencies generally have 30 days to "reinvestigate" the disputed item or remove it from your credit report. The procedure is fully described at the FTC website.

You should also notify the creditor in writing that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many creditors or information providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct—that is, if the information is found to be inaccurate—the information provider may not report it again.

This publication is NOT INTENDED TO SERVE AS A SUBSTITUTE FOR LEGAL ADVICE. Please consult with a licensed attorney if you require legal advice.

About the Author: Carl H. Starrett II, has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Can I Get Rid of My Student Loans in Bankruptcy?

The general rule is that student loans cannot be discharged in bankruptcy. Under Section 523 of the Bankruptcy Code, there are two exceptions to this general rule.

1. The student loan may be discharged if it is neither "insured or guaranteed by a governmental unit" nor "made under any program funded in whole or in part by a governmental unit or nonprofit institution."

2. The student loan may be discharged if paying the loan will "impose an undue hardship on the debtor and the debtor's dependents."

It is usually difficult to have student loans erased under the undue hardship standard. Whether an exception applies under this law depends on the facts of the particular case and may also depend on local court decisions. Even if a student loan falls into one of the two exceptions, discharge of the loan may not be automatic. You may have to file a lawsuit as part of your bankruptcy called an adversary proceeding in to obtain a court order declaring the debt discharged.

We are a bankruptcy and debt relief agency. We help people file for bankruptcy. This publication is NOT INTENDED TO SERVE AS A SUBSTITUTE FOR LEGAL ADVICE. Please consult with a licensed attorney if you require legal advice.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

10News.com - News - Tears Flow As Jury Reads Verdict

10News.com - News - Tears Flow As Jury Reads Verdict

Under Government Code Section 1770.2, Acting Mayor Michael Zucchet and Councilman Ralph Inzunza are immediately suspended from office. The will eventually be removed from office under Section 12 of the City Charter. For now, San Diego has no mayor and only 6 of 8 members of the City Council with special elections already scheduled to fill the void created by Mayor Dick Murphy's resignation. If Donna Frye is elected as the next Mayor, yet another special election will be needed to fill that potential vacancy.

My fear is that the citizens of San Diego may grow weary of perpetual elections. However, San Diego voters need to be more vigilant than ever. San Diego has already suffered through years of financial mismanagement and now two council members have been been found guilty of wire fraud and extortion. San Diego voter must now make a careful assessment of the potential candidates and elect representatives that are both competent and honest. I trust that this task can be accomplished in city of 1.5 million people.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Police, fire issues are muted in campaign | The San Diego Union-Tribune

This article from the San Diego Union Tribune illustrates a disturbing aspect of the mayoral campaign. Public safety is getting little or no attention by the leading mayoral candidates. As evidence comes to light that the San Diego Police Department might be manipulating crime statistics, the City Council and mayoral candidates are ignoring this important issue.

Although San Diego is facing important issues such as the pension crisis and the Mt. Soledad Cross issue, there is more than just these two issues facing the person who will be elected San Diego's next mayor. The people of San Diego should call upon the mayoral candidates to address all of the tough questions, not just the popular questions.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

More on Crime Statistics in San Diego

I recently published an article on the possible manipulation of crime statistics by the San Diego Police Department. The article caught attention of the radio talk show host Roger Hedgecock and I was asked to appear on the show and discuss my article. Click here to listen to the audio of my segment on the show.

I originally emailed my concerns to the entire San Diego City Council in early June 2005. So far, I have received no response. I wanted to get reaction from some of the major candidates running for mayor of San Diego, including Donna Frye, Jerry Sanders and Steven Francis. As expected, I received no response from any of the candidates either. I believe the citizens of San Diego should demand a plan of action mayoral candidates to address this situation.

If you have been a victim of crime and the San Diego Police Department has failed to take a crime report, please contact me or report it to Special Investigations Agency. We are hoping to gather enough information to share with the City Council so that they might take appropriate action.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Spoof of the Minuteman Project

One of my clients has posted a rather amusing video spoof of the Minuteman Project. Although I fully support the concept of securing our borders, some have suggested that the Minuteman Project may have been infiltrated by racists and militia groups. Click here to watch the video spoof.

Quicken.com - Choosing Between an LLC and an S Corporation

Quicken.com - Choosing Between an LLC and an S Corporation

This informative article discusses the some of the important tax differences between an LLC and an S Corporation. In California, LLCs pay franchise tax fees based on gross income that have no relation to profits and corporations are not subject to this tax. Corporations can be used to reduce self employment taxes, so many of my clients find that the S Corporation is still the preferred form of business for most small business owners in California.

Choosing the proper business entity for you is often a question that should be addressed by your attorney and CPA. Tax planning and personal asset protection are both very important issues that should be addressed by qualified practioners.

This publication is NOT INTENDED TO SERVE AS A SUBSTITUTE FOR LEGAL ADVICE. Please consult with a licensed attorney if you require legal advice.

About the Author: Carl H. Starrett II, has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

When Should I Get a Will or a Living Trust?

When should you set up your will or living trust? The answer is very simple: now.

I consulted with a client in late April 2005 regarding a living trust for her estate to avoid the cost and delay of probate. The plan was relatively simple: educational gifts for her 4 grandchildren and then the rest would be split between her two daughters. I sent her drafts of the documents in late May 2005 and she finally came in last week to sign the final versions. On July 1, 2005, she signed the deed to put her home into the living trust. She died this afternoon July 8, 2005).

I know from personal experience that the decisions to be made during the estate planning process can be difficult to face: Who would raise my daughter? Who would I trust to make my health care decisions when I could not? Who could I trust to handle the financial affairs of my estate? While these issues are uncomfortable to address, these are decisions we must make for the sake of our families. It seems ironic for an attorney not to at least have a will, but the truth is that I did not have a will or a living trust for my family until 2002. I had been married for 8 years and my daughter was 5, but better late than never.

A few years ago, there was a song called Everybody's Free to Wear Sunscreen written by Mary Schmich. It had the following lyrics: "Don't worry about the future. Or worry, but know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum. The real troubles in your life are apt to be things that never crossed your worried mind, the kind that blindside you at 4 p.m. on some idle Tuesday."

While I generally agree with the sentiment, you can and should plan for the future. It will make things easier for your loved ones when you pass on.

This publication is NOT INTENDED TO SERVE AS A SUBSTITUTE FOR LEGAL ADVICE. Please consult with a licensed attorney if you require legal advice.

About the Author: Carl H. Starrett II, has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Preparing for Bankruptcy

If you are planning to file for bankruptcy, there are two important rules to remember. Both rules deal with treatment of creditors in the 3 months leading up to the filing of the bankruptcy.

Credit Card Purchases

If at all possible, I strongly recommend that you do NOT use your credit cards for at least 90 days before the date you file your petition for bankruptcy. If you do, the Bankruptcy Trustee or your creditors may take legal action to block your bankruptcy. The bankruptcy judge may look upon any charges made during that 90 days as fraudulent and the court may not not discharge (erase) those debts in your bankruptcy. You may have heard stories about people who run up all of their credit cards and go on vacations prior to filing bankruptcy, but the reality is that the Courts and creditors can and do act to stop this kind of abuse.

Sometimes credit card purchases are simply unavoidable. If you use a credit card for small purchases of "necessities of life" such as food, necessary clothing, gasoline, and similar items, and the amounts charged are relatively minor, it is unlikely that the court will require you to pay for such charges. While there are no hard and fast rules, keep in mind that you would be wise to charge only those expenses which are absolutely necessary for your family's survival and, even then, keep the amounts as small as possible.

Payments to Creditors Prior to Bankruptcy

Bankruptcy law requires you to treat all of your creditors equally. For example, you cannot repay a $10,000 personal loan to your parents and then file bankruptcy to avoid paying your credit card debt. If you pay any creditor $600 or more over and above the amount you would normally have paid it, Chapter 7 trustee can sue to recover the excess payment and instead distribute it among all of your creditors. This does not happen often, but you must keep it in mind as you prepare to file your bankruptcy.

This publication is NOT INTENDED TO SERVE AS A SUBSTITUTE FOR LEGAL ADVICE. Please consult with a licensed attorney if you require legal advice.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

How Can I Find a Good Lawyer?

Most people would not have a clue on how to find a good lawyer. If I practiced family law, I could be a rich man because literally dozens of people have asked my wife if I handle divorces. Thankfully, I do not handle marital dissolution cases but I do try to provide some guidance to qualified individuals that I know and trust. Asking lawyers you know is a helpful place to start, but there are many ways to find a good lawyer:

Attorney public records - If you have an attorney that you considering, you can check the attorney's official bar membership record (address, phone number, discipline history, etc.) on the State Bar's web site. I am finding that an increasing number of attorneys have disciplinary actions against their license, so be careful of the attorney that you choose to represent you.

Recommendations - Friends and co-workers can be good information sources if they have used the services of and lawyer. Employers often used attorneys for business related matters and may have many connections with good lawyer contacts. Even other lawyers can often offer recommendations. Business people or professionals such as bankers, ministers, doctors, social workers and teachers are also good sources. My pastor will often ask me to help guide a member of our congregation in the right direction towards a reputable attorney.

Certified lawyer referral services - You can find a State Bar-certified lawyer referral services in the Yellow Pages. In addition, check the listings at the beginning of the "Attorneys" listings, or contact the local bar association. A list of certified lawyer referral services can be found on the State Bar's web site.

Certified Legal Specialists - The California State Bar maintains a list of attorneys who are certified specialists in particular areas of law. The State Bar certifies specialists in 8 areas of law: (1) Appellate Law; (2) Workers' Comp; (3) Tax Law; (4) Family Law; (5) Immigration; (6) Estate Planning; (7) Bankruptcy; and (8) Criminal Law. A list of Certified Legal Specialists can be found on the State Bar's web site.

Free legal aid agencies - Some people may be eligible for free legal aid, depending on income and the kind of legal problem. LawHelpCalifornia.org provides low-income Californians with easy online access to basic legal resources and attorney information. Also, many law schools have free legal clinics.

Advertisements - Telephone book Yellow Pages and newspaper advertisements may provide information about a specific lawyer. Some lawyers and law firms advertise on the Internet. The same laws governing advertising in print, radio, TV and other media apply to the Internet. In addition, sometimes lawyers join together and advertise their services as a group. Beware of lawyers who practice "door law" (i.e. they handle anything that comes through the door).

Dispute resolution programs - Many communities have "dispute resolution" programs as an alternative to using lawyers and the court system. In San Diego, I have successfully used the services of the National Conflict Resolution Center on a number of occasions to settlement difficult cases.

Hiring a lawyer is similar to shopping for a car. You do your research, ask for recommendations and even met with a few attorneys for a consultation, not unlike taking a test drive. Check references and fine someone your are comfortable with and who can speak on your level. Of course, choosing a good lawyer can also be very simple: call me and let me tell you how I can help you!

About the Author: Carl H. Starrett II, Esq., has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.