How Does Bankruptcy Work in California?

Bankruptcy is not something anyone wants to go through. However, it can help bring an end to troubled financial problems. Each state has different laws pertaining to the process of bankruptcy and how it works. Seek out legal advice if you are unsure of this process.  California has different laws in place to help those facing bankruptcy.

Income Limits

There are two different types of bankruptcies in California, they are known as Chapter 7 and Chapter 13. The line is split down the middle for families facing a bankruptcy decision. Half the families that file in California are counseled to follow with Chapter 13 and this is in regards to income. People are faced with different income situations and each bankruptcy chapter helps to eliminate bankruptcy fraud. You can be made to pay your creditors from anywhere from 3 years and beyond depending on your income and the bankruptcy chapter you file.

Filling Out Paperwork

The paperwork for bankruptcy in California can be found online and are available at the click of a button. There are several courts available in California for you to complete the bankruptcy process. They are located in 13 different courts and they are spread all over California. Look for more information on the locations of the bankruptcy courts by doing a quick search online.

Exempted Property

Bankruptcy is usually the result in which you sell your personal items in order to satisfy your debt. If you meet criteria, you do not have to sell certain objects in your home. If your home is only worth a certain amount you are not required to put it up for sell in order to satisfy your debts.