Frequently Asked Questions: Fresh Start Settlement Program

The State Bar is authorized to participate in the FTB tax intercept program pursuant to Business and Professions Code section 6034. Section 6304 provides that the State Bar is authorized to participate in this program for the “collection of any unpaid amount owed to the State Bar of California, including any fine, penalty, assessment, cost, or reimbursement imposed under sections 6806.10, 6140.5c, and any other applicable law.”

• Under this program, FTB collects money from tax, refunds, lottery winnings, or unclaimed property. Additional information can be found on the FTB’s webpage about the interagency intercept program.

The State Bar is also authorized to participate in the FTB Court Ordered Debt program pursuant to Revenue and Taxation Code section 19280 (as revised in January 2019). Revenue and Taxation Code section 19280 provides that the State Bar is authorized to participate in this program for “any amounts due pursuant to Section 6086.10 or 6140.5 of the Business and Professions Code.”

• Under this program, FTB collects money from sources such as wage garnishment and bank levies. Additional information can be found on the FTB’s webpage about the Court Ordered Debt program.

Business and Professions Code section 6140.5 authorizes the State Bar to collect interest on CSF payments due. The interest rate is approved annually by the Board of Trustees (CSF Rule 3.45), and has been set at 10 percent per year, calculated from the date of disbursement. Judgments with underlying CSF debt also accrue interest on the CSF payments at the same rate.

Yes, upon receipt of the full settlement amount, within two weeks the State Bar will file appropriate documentation to satisfy the judgment and remove any property liens.

Please email collections@calbar.ca.gov to request copies of judgments, Supreme Court Orders and Client Security Fund documents.

Please email collections@calbar.ca.gov for information on how the outcome of your bankruptcy proceeding affected debt owed to the State Bar.

If you reach a settlement and complete payment through the Fresh Start Settlement Program, the State Bar will thereafter consider the eligible debt as itemized on your Fresh Start Settlement Program account paid in full for all purposes, including petitioning for reinstatement to the practice of law. This is not to imply reinstatement is automatic or guaranteed; standard reinstatement petition procedures would be required. Further, settlement through Fresh Start will not resolve outstanding probationary obligations or other outstanding costs, such as unpaid annual licensee fees and penalties, unpaid compliance fee and penalties, payments due to LAP, restitution due directly to individuals, etc. The program's settlement authority is limited to debt; we do not have legal authority to change other legal requirements for reinstatement to the practice of law. 

For further information regarding reinstatement, please visit the State Bar Court website and see the FAQs. If you have a specific question about the court's reinstatement procedures that is not answered on the website, please call the court's main lines: 213-765-1400 in Los Angeles and 415-538-2050 in San Francisco. However, the court cannot provide specific advice on whether you are eligible for reinstatement.