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Bankruptcy means the condition of inability to pay dues or debts, or the state of having fewer assets compared to debts. You can seek bankruptcy relief in California following Chapters 7, 11 and three of the bankruptcy law in California. These laws affect individual as well as corporate bankruptcy, and insolvency, liquidation, debt consolidation loan and reorganization, etc.
These laws also apply to credit post bankruptcy, charge card bet, re-establishing credit, repossessions, foreclosures, and taxes, garnishments and bankruptcy. Specific laws on consumer debt discharge and corporate asset liquidation and reorganization also come under California bankruptcy legal provisions.
In the federal law dictated bankruptcy proceeding, liquidation and reorganization with the debtor's assets take place under court supervision, that is beneficial for the creditors. The debtor is then, by virtue of a 'discharge', stripped off his debt and his awesome property is known as 'the bankruptcy estate', that can fall under bankruptcy proceedings thereon. The 'bankruptcy code' can be a term given to what the law states covering this process.
Bankruptcy in California law of Chapter 7 requires a voluntary case filing through the debtor. In some cases, the location where the debtor fails to pay debt with time, a creditor may file a personal bankruptcy case against the debtor. Involuntary cases usually occur where a debtor owes three or maybe more creditors at least $10,000 as a whole debts. If there are 12 creditors, one creditor with $10,000 receivable dues, may also file an involuntary bankruptcy case up against the debtor.
Consulting a personal bankruptcy attorney is one concrete way to deal with it. Although having an attorney is not a direct solution to overcoming financial problems, an insolvency lawyer for any bankruptcy case can be the right solution to a particular financial problem.
Refinancing Options
Filing Bankruptcy In California - California's housing exemption laws for bankruptcy are generous and several bankruptcy filers opt for Chapter 7. Some choose Chapter 10, which has a repayment plan. In both cases, the debtor grows to keep his home if they have even a small amount of equity.
There are numerous of forms of refinancing. Your home equity loan may be your easiest credit source depending on the type of bankruptcy you have filed. For home equity loan, you do not have to wait 7-10 years for credit application. If you live in parts of California where the equity has significantly risen with house values, then you can cash-out part that equity by using sub-prime lenders and get an additional mortgage or credit.
Second mortgages come with high rates for brief terms. A second mortgage enables you to apply for loans by cashing-out part your home's value while your first low-rate mortgage remains intact.
How To File Bankruptcy In California - Making a good payment history can help you rebuild your credit score post Bankruptcy in California. A credit line will help you get a low interest loan collateral against your property. You can create a positive credit history in just 2 years through the use of little credit and repaying it every month. Start with a secured credit card so you can make on-time payments. You can look at a prime loan refinancing once you've good credit standing.
