Bankruptcy
- What is Bankruptcy?
- Will I lose my house?
- In what other ways can bankruptcy in California help?
- What happens to my credit after I file bankruptcy in California?
- How much does it cost?
- What do I need to do?
What is Bankruptcy?
Bankruptcy is aimed at giving those burdened by debt the chance to get a fresh start. The reasons for filing are many; including job loss, divorce, illness, etc.
Types of bankruptcy in California
- Bankruptcy Chapter 7 - Often called the "liquidation" or "straight" bankruptcy, chapter 7 is primarily used by individuals who wish to free themselves of debt simply and inexpensively, but may also be used by businesses that wish to liquidate and terminate their business.
- Bankruptcy Chapter 13- An individual with a regular income who is overcome by debts, but believes such debt can be repaid in full or part within a reasonable period of time, may file under chapter 13 of the Bankruptcy Code. Chapter 13 permits the debtor to file a plan in which the debtor agrees to pay a certain percentage of future income to the Bankruptcy Court for payment to creditors. If the Court approves the plan, the debtor will be under the Court's protection while repaying such debts.
Although there are five types of bankruptcy in California, most consumers and small businesses file under either Ch 7 or Ch 13.
