| Filing for bankruptcy in California follows Chapters | | | | from. The debtor is then stripped of his debt by |
| 7, 11 and 13 of the California bankruptcy law. | | | | virtue of a "discharge". This means that the |
| These legal provisions apply to individual and | | | | debtor's property that will be known as "the |
| corporate bankruptcy, liquidation, insolvency, | | | | bankruptcy estate" will then fall under bankruptcy |
| reorganizations, and debt consolidation, among | | | | proceedings. |
| others. Aside from these specific items, California | | | | The law that covers most of the bankruptcy |
| bankruptcy law are also applicable to credit after | | | | process is known as "the Bankruptcy Code". The |
| bankruptcy, re-establishing credit, credit card debt, | | | | cases are filed with the federal court in all states |
| foreclosures, repossessions, and garnishments, | | | | to ensure uniformity of actions. There may be |
| taxes and bankruptcy. You will also find specific | | | | some distinctions in each state especially to those |
| rules on discharge of personal debts as well as | | | | referring to exempted assets as well as to the |
| corporate asset liquidation and reorganization. | | | | nature and extent of a interest and other |
| Oftentimes, bankruptcy is spelled incorrectly like | | | | matters relating to the debtor's property. It is |
| bankruptsy, bankrucpy, or bankrupcy. Not with | | | | thus best to consult with a local bankruptcy |
| standing the spelling, the term "bankruptcy" usually | | | | attorney to explain the applicable laws to your |
| abides with a particular definition. It is known as | | | | particular situation. |
| the state of inability to pay debts as these | | | | Chapter 7 bankruptcy in California requires that |
| become due, or the state of having more debts | | | | the debtor voluntarily file the case. But there may |
| as compared to assets. This terminology was | | | | be instances where creditors are allowed to |
| derived from a medieval term that means | | | | resort to involuntary bankruptcy cases against |
| "broken table". This explains the situation where | | | | their debtors. This is especially true for debtors |
| those merchants selling wares on tables who are | | | | who fail to pay debts on time. But involuntary |
| unable to pay and get their tables broken by | | | | bankruptcy cases do not occur often, as these |
| those who were not paid by them. | | | | are only available when there are 3 or more |
| In every bankruptcy proceeding as dictated by | | | | creditors with at least $10,000.00 total amount of |
| federal law, the debtor goes through a liquidation | | | | debts. These can also be filed in cases where |
| of assets or reorganization under the supervision | | | | there are about 12 total numbers of creditors, |
| of the court. This will tend to be beneficial for the | | | | which enables one creditor who is collecting about |
| creditors or those whom the debtor owes money | | | | $10,000.00 to file the involuntary bankruptcy case. |