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Bankruptcy means the state of inability to pay dues or debts, or perhaps the state of having fewer assets in comparison to debts. You can seek bankruptcy relief in California following Chapters 7, 11 and 3 of the bankruptcy law in California. These laws connect with individual as well as corporate bankruptcy, and insolvency, liquidation, debt consolidation and reorganization, etc.

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

In 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 be, by virtue of a 'discharge', stripped off his debt and the property is known as 'the bankruptcy estate', that will fall under bankruptcy proceedings thereon. The 'bankruptcy code' is really a term given to the law covering this process.

Bankruptcy in California law of Chapter 7 requires a voluntary case filing from the debtor. In some cases, in which the debtor fails to pay debt in time, a creditor may file a bankruptcy case against the debtor. Involuntary cases usually occur where a debtor owes three or even more creditors at least $10,000 in total debts. If you can find 12 creditors, one creditor with $10,000 receivable dues, may also file an involuntary bankruptcy case against the debtor.

Consulting an individual bankruptcy attorney is one concrete approach to deal with it. Although owning an attorney is not a direct solution to overcoming financial problems, an insolvency lawyer for a bankruptcy case can be the right solution to a certain financial problem.

Refinancing Options

Filing Bankruptcy In California - California's housing exemption laws for bankruptcy are generous and many bankruptcy filers opt for Chapter 7. Some choose Chapter 10, that features a repayment plan. In both cases, the debtor reaches keep his home when they have even a small amount of equity.

There are a number of forms of refinancing. The house equity loan may be your easiest credit source with regards to the type of bankruptcy you've got 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 home prices, then you can cash-out part that equity by using sub-prime lenders and get an additional mortgage or credit.

Second mortgages include high rates for short terms. A second mortgage lets you 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 - Creating a good payment history will allow you to 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 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 consider a prime loan refinancing once you have good credit standing.