{"id":362434,"date":"2022-06-29T10:55:31","date_gmt":"2022-06-29T16:55:31","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=362434"},"modified":"2022-06-29T11:26:51","modified_gmt":"2022-06-29T17:26:51","slug":"bankruptcy-in-california","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/bankruptcy\/bankruptcy-in-california\/","title":{"rendered":"How do you file for bankruptcy in California?"},"content":{"rendered":"\n
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Filing bankruptcy in California isn\u2019t that different from other states because bankruptcy is regulated under federal law rather than state laws. The primary difference is that California has different laws regarding the types of assets you may retain possession of during a bankruptcy.<\/p>\n<\/div>\n\n\n\n

If you\u2019re worried about losing your house, car or personal belongings because you\u2019re behind on your bills, filing for bankruptcy in California might be an option to eliminate debt or get better repayment terms. To file for bankruptcy, you need to see if you qualify and then follow the steps outlined in this guide. \u00a0<\/p>\n\n\n\n

What is bankruptcy? <\/h2>\n\n\n\n

Bankruptcy is a legal action you can take if you\u2019re unable to pay your outstanding debts. Depending on the type of bankruptcy you file, you may either give back the assets that you owe money on in return for forgiveness of your debts or restructure how these debts are paid back. Filing for bankruptcy has an immediate impact on your credit score, which may make borrowing more difficult while the bankruptcy appears on your credit report<\/a>.  <\/p>\n\n\n\n

There are two types of bankruptcy individuals may file. <\/p>\n\n\n\n

Chapter 7 bankruptcy <\/h3>\n\n\n\n

A Chapter 7 bankruptcy completely dissolves your debt so you don\u2019t owe money on that debt. Before you can have your debts discharged, however, you must liquidate your assets to pay as much of your debt as possible. The court decides which of your creditors are entitled to the proceeds from the sale of your assets. <\/p>\n\n\n\n

This is an option if you have protected assets due to exemptions or if most of your debts are unsecured. It\u2019s also the quickest way to file for bankruptcy and can be completed in four to six months.  <\/p>\n\n\n\n

Chapter 13 bankruptcy <\/h3>\n\n\n\n
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If you have secured debts, such as a mortgage or a car payment, and wish to keep your assets, a Chapter 13 bankruptcy may be the better option. This type of bankruptcy allows you to restructure your debt and make payments to your lenders through a court-appointed trustee. In many cases, you\u2019re able to save money on the interest you owe on your outstanding debts. <\/p>\n\n\n\n

Chapter 13 bankruptcies can take three to five years to discharge because you\u2019re required to make payments in installments over this time. However, it\u2019s an option if you\u2019re looking to prevent foreclosure on your home or car repossession.  <\/p>\n\n\n\n

How to file for bankruptcy in California <\/h2>\n\n\n\n

Filing bankruptcy in California isn\u2019t that different from other states because bankruptcy is regulated under federal law rather than state laws. The primary difference is that California has different laws regarding the types of assets you may retain possession of during a bankruptcy.<\/p>\n\n\n\n

For example, federal bankruptcy laws allow you to keep only $25,150 in equity in real property, while California bankruptcy laws allow either $29,275 or $75,000 depending on how you file. Married couples with a joint bankruptcy petition may be eligible to keep real property up to $150,000.<\/p>\n\n\n\n

If you\u2019re considering filing for bankruptcy, here\u2019s the process you\u2019ll need to follow: <\/p>\n\n\n\n