There are many different types of bankruptcy, known as Chapters, such as Chapter 7, Chapter 11, and Chapter 13. Since you are an individual consumer, you will either be declaring Chapter 7 or Chapter 13; there's no reason to worry about the many other different Chapters available. The subject can easily be confusing to the average person with no experience in law, but there is nothing to worry about. A qualified bankruptcy lawyer will be able to help you understand the different terms and be able to get you the best possible outcome.
Meeting with creditors
Once you have filed for bankruptcy in California, you will have to have a meeting with representatives of your creditors so a deal can be worked out between you. These representatives are usually understanding of your problems and will try to work with you. They face these meetings regularly as it is their job, so you don't have to worry about inconveniencing them. You will find that these meetings are very short in most cases and only meant to confirm the information that was provided to them already. If you are the debtor in one of these meetings, you will be put under oath so that your statements are assured to be true.
| If you may need legal assistance with a Bankruptcy matter , consult with a Bankruptcy Attorney in your area to receive a free case review. |
Exemptions for bankruptcy in California
In the state of California, those who declare bankruptcy are given a choice between the exemptions that are found in the Code of Civil Procedure §704, or a list of exemptions that was created specifically for bankruptcy cases found in CCP §703.140. If you are a homeowner, you will be pleased to hear that the state offers a large exemption on homesteads. The property that you are allowed to keep after bankruptcy is meant to give you a fresh start.
Community property laws
Bankruptcy in California follows the community property law. This law means that all property acquired by you and your spouse during the marriage is held between the two equally; unless there has been a formal agreement by the two stating otherwise. As a result, debts incurred by one spouse are considered to be held by both members of a marriage equally. Even if only one spouse declares bankruptcy, property held by both spouses in the marriage immediately becomes property of the estate. All property of the estate that is not declared as exempt within the bounds of state laws may be sold in order to pay off debts that are held by the debtor.
| If you may need legal assistance with a Bankruptcy matter , consult with a Bankruptcy Attorney in your area to receive a free case review. |
