How Do California Bankruptcy Laws Help Debtors?

California bankruptcy laws are governed by overarching federal bankruptcy law. California bankruptcy law allows for individuals facing difficult financial times to get their lives back to normal by relieving excessive debt which may be caused by unexpected life circumstances. If you are facing financial struggle in California, contact an experienced bankruptcy attorney who can advise you of your eligibility to file for a California bankruptcy.

California Bankruptcy Law Helping Debtors

Under California bankruptcy law, you can reduce or eliminate many debts and get the breathing room you need financially to live a better life. California allows you to file for Chapter 7 or Chapter 13 bankruptcy if you meet the income, asset and debt requirements for either. You must meet a means test under the law to be eligible to file bankruptcy. This helps many Californians to get their life together after a major life setback such as job loss, business failure, unforeseen medical issues and other life situations that caused them to end up owing more money than they can repay.

Under bankruptcy law, there are many instances in which you can keep certain property and assets out of your bankruptcy filing. For example, many retirement accounts are not included in the bankruptcy estate. If you have a qualified retirement account and the contributions are within the allowable amount under the bankruptcy code, your account will not be affected by your bankruptcy filing.

You should be aware that certain debts cannot be included in a bankruptcy filing. An attorney can help you assess which of your debts and assets will be part of your filing. Student loan debts, tax debts, child support and alimony are generally not dissolved in bankruptcy.

Bankruptcy will have a long-term negative impact on your credit, but careful planning and attention will help you get your credit repaired after filing. It is important to take this into consideration at the outset so that you are prepared.

Getting Legal Advice

An attorney can help you review your financial situation and help you look at it from a different, more professional, view. An attorney who is skilled at looking at the finances of individuals who are facing overwhelming debt will handle your case in confidence. Bankruptcy can seek like a scary prospect, but for many people it is the only way to get back to financial health.