Consult a Santa Rosa Bankruptcy Attorney today!<\/a><\/li><\/ul><\/nav><\/div>\n\nThe United States Courts define bankruptcy as \u201ca legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).\u201d<\/span><\/p>\nThe US Bankruptcy Code is also what is commonly referred to as the federal bankruptcy law.<\/span><\/p>\nShould you successfully get a bankruptcy discharge, this will significantly impact your credit scores and will be reflected in your credit history for a decade, at most. This is why you should only consider filing for bankruptcy if and when you have already exhausted all other debt-relief options, trimmed down all your lifestyle excesses, and maximized all opportunities that you may have in paying your debts. Given this, if the situation is already suffocating and you think that bankruptcy may be your last hope, then much of the damage has already been done to your credit scores. That filing for bankruptcy could cut your losses and stop your misery and distress.\u00a0<\/span><\/p>\nSanta Rosa, California law firm Embolden Law PC provides free consultations to individuals like you who are considering filing for bankruptcy. Contact us today and see how we can help with your financial constraints and guide you in the filing for the bankruptcy process, get your bankruptcy discharge, rebuild your credit score and move towards financial freedom.<\/span><\/p>\n<\/span>The Types of Bankruptcies in the US<\/b><\/span><\/h3>\nInstead of state courts, the federal courts handle all bankruptcy cases. The implementing rules and regulations are in line with the stipulations provided under the US Bankruptcy Code, which outlines the procedures and processes for each type under a specific chapter in the Code. Some common examples are the following:<\/span><\/p>\n\n- Depending on the circumstances of debtors, individuals may file for Chapter 7 or Chapter 13 bankruptcy.<\/span><\/li>\n
- Should reorganization may be needed, cities, villages, and school districts may file for Chapter 9 bankruptcy<\/span><\/li>\n
- Businesses may file for Chapter 7 bankruptcy if they wish to liquidate and Chapter 11 bankruptcy if they want to reorganize<\/span><\/li>\n<\/ul>\n
There are more types of bankruptcies available. It is best to discuss with your lawyer which kind of bankruptcy you can file for and which would give you the best outcome to help you lead a better life after your fresh start.<\/span><\/p>\n<\/span>Bankruptcy Options for Individuals and Couples<\/b><\/span><\/h3>\nThe two types of bankruptcies that individuals or couples may avail are Chapter 7 and Chapter 13 bankruptcy.<\/span><\/p>\n\n- Available for individuals, couples, and even small businesses with little to no assets, Chapter 7 bankruptcy provides the liquidation of non-exempt assets to pay creditors.\u00a0<\/span><\/li>\n
- On the other hand, Chapter 13 Bankruptcy is for individuals and couples who earn more money than qualified to avail of the Chapter 7 bankruptcy. Chapter 13 bankruptcy provides for a feasible repayment scheme of the debtor to pay off all creditors. With the consistent and regular income of the debtor, the repayment plan will usually cover three to five years. In this type of bankruptcy, the debtor may keep their property.<\/span><\/li>\n<\/ul>\n
<\/span>Will I Lose Everything in a California Chapter 7 Bankruptcy?<\/b><\/span><\/h3>\nSimilar to all other states, California law allows for exemptions when you file for bankruptcy.<\/span><\/p>\nThe good news here is that even in a Chapter 7 bankruptcy, you still get to keep some of your assets and properties. These assets are what we call exempt assets. All other assets that the bankruptcy trustee will liquidate to pay creditors are what we call non-exempt assets.<\/span><\/p>\nIn Chapter 13 bankruptcy, you keep all your property, including the non-exempt property. However, California law dictates that you will pay the value of your non-exempt property equity in the repayment plan or your income after taxes, whichever is higher. This way, no matter which the debtor files type of bankruptcy, the creditors will still collect the same amount.<\/span><\/p>\n<\/span>What are the Exemptions in California?<\/b><\/span><\/h3>\nTo file for bankruptcy in California, one must have lived in the state for at least 181 days. However, to avail of California exemptions, one must have lived in California for at least two years before filing. Should one reside in California for less than the required number of days, the exemptions provided by the state where one lived previously shall apply.<\/span><\/p>\nThere are two state exemptions systems in California: System 1 and System 2. Generally, if you own significant home equity, the better choice is System 1, or what is also called 704 exemptions. If you want to exempt other types of property or wildcard exemption, the better option is System 2 or what is also called 703 exemptions.\u00a0<\/span><\/p>\n