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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 declare themselves bankrupt in California following Chapters 7, 11 and 3 of the bankruptcy law in California. These laws apply to individual as well as corporate bankruptcy, and insolvency, liquidation, debt consolidation reduction and reorganization, etc.

These laws also apply to credit post bankruptcy, credit 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 come under California bankruptcy legal provisions.

In a federal law dictated bankruptcy proceeding, liquidation and reorganization from the debtor's assets take place under court supervision, which can be beneficial for the creditors. The debtor is then, by virtue of a 'discharge', stripped off his debt and the property is known as 'the bankruptcy estate', that can 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 seven requires a voluntary case filing by the debtor. In some cases, where the debtor fails to pay debt with time, a creditor may file a bankruptcy case against the debtor. Involuntary cases usually occur where a debtor owes three or maybe more creditors at least $10,000 in total debts. If there are 12 creditors, one creditor with $10,000 receivable dues, may also file an involuntary bankruptcy case against the debtor.

Consulting a personal bankruptcy attorney is one concrete approach to deal with it. Although through an attorney is not a direct treatment for overcoming financial problems, an insolvency lawyer for any bankruptcy case could 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, with a repayment plan. In both cases, the debtor gets to keep his home if they have even a small amount of equity.

There are a number of forms of refinancing. The home equity loan could be your easiest credit source with regards to the type of bankruptcy you've filed. For home loan, you do not have to wait 7-10 years for credit application. If you live in parts of California the location 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 come with high rates for brief terms. A second mortgage lets you apply for loans by cashing-out part your home's value while a low-rate mortgage remains intact.

How To File Bankruptcy In California - Developing 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 using little credit and paying it off every month. Start with a secured bank card so you can make on-time payments. You can look at a prime loan refinancing after you have good credit standing.