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Bankruptcy means your inability to pay dues or debts, or perhaps the state of having fewer assets when compared with debts. You can seek bankruptcy relief in California following Chapters 7, 11 and three of the bankruptcy law in California. These laws connect with individual as well as corporate bankruptcy, and insolvency, liquidation, debt consolidation reduction and reorganization, etc.

These laws are also applicable to credit post bankruptcy, credit card bet, re-establishing credit, repossessions, foreclosures, and taxes, garnishments and bankruptcy. Specific laws on credit card debt discharge and corporate asset liquidation and reorganization also belong to California bankruptcy legal provisions.

Inside a federal law dictated bankruptcy proceeding, liquidation and reorganization of the debtor's assets take place under court supervision, that is beneficial for the creditors. The debtor will then be, by virtue of a 'discharge', stripped off his debt and his property is known as 'the bankruptcy estate', that will fall under bankruptcy proceedings thereon. The 'bankruptcy code' can be a term given to the law covering this process.

Bankruptcy in California law of Chapter 7 bankruptcy requires a voluntary case filing from the debtor. In some cases, where the debtor fails to pay debt in time, a creditor may file a bankruptcy case against the debtor. Involuntary cases usually occur in which a debtor owes three or more creditors at least $10,000 as a whole debts. If you can find 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 approach to deal with it. Although having an attorney is not a direct means to fix 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 lots of bankruptcy filers opt for Chapter 7. Some choose Chapter 10, which has a repayment plan. In both cases, the debtor gets to keep his home when they have even a small amount of equity.

There are numerous of forms of refinancing. Your home equity loan might 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 are living in parts of California where the equity has significantly risen with house values, then you can cash-out part that equity with the help of sub-prime lenders and get a second mortgage or credit.

Second mortgages include high rates in short terms. A second mortgage enables you to apply for loans by cashing-out part your home's value while the first low-rate mortgage remains intact.

How To File Bankruptcy In California - Making a good payment history will help you rebuild your credit score post Bankruptcy in California. A credit line will help you get a low interest rate loan collateral against your property. You can create a positive credit score in just 2 years by utilizing little credit and paying it off 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.