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Bankruptcy means your inability to pay dues or debts, or even the state of having fewer assets compared to debts. You can seek bankruptcy relief 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 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 credit card debt discharge and corporate asset liquidation and reorganization also come under California bankruptcy legal provisions.

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

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

Consulting a bankruptcy attorney is one concrete method to deal with it. Although having an attorney is not a direct treatment for overcoming financial problems, an insolvency lawyer to get a bankruptcy case could possibly 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 many bankruptcy filers opt for Chapter 7. Some choose Chapter 10, which has a repayment plan. In both cases, the debtor reaches keep his home when they have even a small amount of equity.

There are a variety of forms of refinancing. The home equity loan could 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 reside in parts of California the location where the equity has significantly risen with home values, then you can cash-out part that equity with the aid of sub-prime lenders and get a second mortgage or credit.

Second mortgages have 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 - 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 rate loan collateral against your home. You can create a positive credit score in just 2 years through the use of little credit and paying it off every month. Start with a secured charge card so you can make on-time payments. You can look at a prime loan refinancing after you have good credit standing.