CA bankruptcy laws aren’t the most favorable to the debtor nor are they the most restrictive. If you are considering bankruptcy, research California bankruptcy law before you proceed with the decision so you know what to expect from the process and what exemptions you are entitled to.
When starting a business, no one thinks they will fail; however, things happen and there may come a time when filing for bankruptcy becomes the best course of action for yourself and your business. Before filing for bankruptcy, keep in mind the following:
1. Have a plan for life after California bankruptcy. Help yourself by looking at your current situation as an end, and in many ways it is, but also view it as a new beginning.
2. Have a good understanding of bankruptcy laws in California and how they can affect your life--from your credit rating to your ability to start a new business.
3. Understand what brought you to this point. Learn from the situation so if you ever start another business, you can avoid bankruptcy a second time.
Action Steps
The best contacts and resources to help you get it done
Know the exemptions you have under California bankruptcy law
Knowing and understanding the exemptions you have available to you will make navigating the California bankruptcy laws easier and less time consuming. For example, homestead exemptions in California are based on age, physical ability and marital status. Where you fall in those three categories determines whether you can keep your home, depending on its value, or if you will be forced to sell it.
I recommend: Personal Bankruptcy Information has a chart of all the exemptions that are available under California bankruptcy laws.
Moran Law Group offers a detailed explanation of the exemptions available under California bankruptcy law and how they apply in various scenarios.
Understand the process
After the passage of the 2005 bankruptcy laws, filing for bankruptcy has changed drastically. It's not as easy to file for Chapter 7 bankruptcy. There's a new credit counseling provision, and when you file Chapter 13 bankruptcy, you are expected to pay more under your payment plan and face stiffer penalties if you don't make timely payments. Bankruptcy laws in the state of California have been affected accordingly, and you should have a thorough understanding of what the process entails so you can make an already difficult process a little easier.
I recommend: California Bankruptcy Law gives step by step details on how the bankruptcy process in California works.
Henry Rendler's Bankruptcy Law gives a detailed overview of the bankruptcy process in California.
Hire a good California bankruptcy attorney when filing for bankruptcy
Like it or not, a good lawyer is absolutely necessary when filing for bankruptcy in California. The more assets you have, the more complicated your filing may be and the more complicated your California bankruptcy. Help yourself by hiring a good attorney.
I recommend: BankruptcyLawyerCalifornia.com has a database of lawyers that can be searched by zip code as well as wealth of information regarding the bankruptcy laws in California. The
Law Office Of Mark J. Markus is a federally qualified debt relief agency as well, offering California bankruptcy assistance.
Tips & Tactics
Helpful advice for making the most of this Guide
- Don't settle on the first bankruptcy attorney in California you talk to. Shop around and find an attorney that you feel comfortable dealing with such a personal aspect of your life.
The official source of California Bankruptcy Law is
the California Bankruptcy Law page at Business.com
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