subject: Filing Bankruptcy California Should Always Be Considered [print this page] This California bankruptcy law offers basic and general information about filing bankruptcy in California, including Chapter 7, Chapter 11, and Chapter 13 cases. Moreover, it will address personal and corporate bankruptcy, liquidation, bankruptcy, reorganizations, debt consolidation, and credit after bankruptcy, re-establishing credit, credit card debt, foreclosures, recovery, and garnishments, taxes and bankruptcy, free of debts, in addition to corporate bankruptcy concerning asset liquidation and reorganization under Chapter 11 Bankruptcy.
Bankruptcy is often misspelled as bankruptsy, bankrupsy, or bankrupcy, among other versions. The term "bankruptcy" itself is defined as being financially unable to pay one's debts as they become due, or to have more debts than assets. Moreover, the filing for bankruptcy is too the statutory procedure under federal law by which debtor under goes a judicially-supervised liquidation or reorganization for the creditors, where the debtor is generally relieved of most of his debts through what is called "discharge". The debtor's property becomes what is called "the bankruptcy estate".
This federal law is generally called as "the Bankruptcy Code". Bankruptcy filings in California are all prepared in federal court, therefore guarantee uniformity throughout the United States. Certain variations do take place from state to state concerning to the assets that a debtor is allowed to keep as exemptions, and as to the nature and extent of a debtor's property interests and other matters. Hence, debtors must consult a local California bankruptcy attorney to make sure the best representation.
In a bankruptcy in California, most of the cases are filed willingly by the debtor. Conversely, creditors are allowed to file instinctive bankruptcy cases beside a debtor who is usually unpaid of his debts when they become due. Such cases are rare. They require 3 or more petitioning creditors who are indebted to a total of at least $10,000.00; if there are less than 12 creditors in total, and then the involuntary filing bankruptcy petition may be filed by one creditor who is owed at least $10,000.00.
