Bankruptcy in California and Its Legal Rules
Bankruptcy means the state or inability to pay the debts or dues or the state of having fewer assets compared to the obligations.
In such cases, you can file for bankruptcy in California with the following chapters 3, 11 and 7 of the bankruptcy law framed in California.
These laws apply to all individuals as well as corporate bankruptcy and liquidation, reorganization, insolvency, and debt consolidation.
These bankruptcy laws are also applicable to credit the post-bankruptcy, repossessions, credit card debt, taxes, re-establishing credit, foreclosures, and taxes.
The specific laws on personal debt discharge and corporate asset reorganization and liquidation also fall under the legal bankruptcy provisions of California.
Bankruptcy in California laws of chapter 7 requires a voluntary case for filing given by the debtor, and in some cases, the debtor also fails to pay the debt in time; a creditor may also file a bankruptcy case against the debtor.
Consulting a bankruptcy attorney is one of the most concrete ways to deal with the issue of debt consolidation.
Although having an attorney is not a direct solution or remedy to overcome financial problems, but it is found to be the right solution to these specific economic issues.
Refinancing after bankruptcy in California
Refinancing after the bankruptcy in California can take several necessary forms where these forms mainly depend on the type of the bankruptcy that you filed for, in which you may also find that home equity loans are found to be your most natural source of the credit.
Fortunately, you don’t have to wait for 7 to 10 years to apply for getting the loan into your home’s value.
- California has a wide range of generous housing exemptions for its state laws, so many of the filers can opt for chapter 7. Otherwise, the registrants can also choose chapter 10 with its replacement plan. In which in both cases you can keep your home safe if you have the small amount of the equity
- Depending on where you are living the equity of the loan amount may have increased significantly with the rapid rise in the California home prices.
- Before signing in any, the financing research loan offers to think twice. As for as the loan estimation it generally includes the fees and rates, so you be honest with your loan lenders about your credit score so you will be getting a realistic number of loan lenders to compare and choose the best deals.
When you create a good payment history, then it will help you to build a credit score, and a history of credit which will help you to get the lowest interest loans with collateral against your home.
You can also create a positive credit score in just two years by using the little credit you have, paying it every month, and making on-time payments.
Category: Bankruptcy
