Law & Legal & Attorney Real estate & property Law

Ways on How to File Bankruptcy in California

In this article, I will be talking about how to file bankruptcy in California.
This will be on filing Chapter 7 bankruptcy and not Chapter 13.
Filing a Chapter 7 bankruptcy in California involves a lot of steps, some of these steps are optional and some are required.
Along with these steps, the debtor also has obligations that he needs to follow.
An example of these obligations is to attend meeting of creditors and the debtor must also participate in a pre-discharge bankruptcy education course.
In a Chapter 7 bankruptcy, once a debtor is discharged, the case could still remain open for months or years.
This is because the trustee is still working on liquidations of the debtor's assets and the distribution of payments to the creditors.
Where can you find bankruptcy courts in California? In the state of California, bankruptcy courts are divided into 4 districts and each district is made up of several divisions.
A debtor's case is usually filed in courts on the county that he resides or on the place where his business or major asset is located.
Northern District of California 1.
San Francisco Division 2.
Oakland Division 3.
Santa Rosa Division 4.
San Jose Division Central District of California 1.
Los Angeles Division 2.
Riverside Division 3.
Santa Ana Division 4.
Santa Barbara Division 5.
San Fernando Valley Division Eastern District of California 1.
Sacramento Division 2.
Fresno Division 3.
Modesto Division Southern District of California 1.
San Diego Division When filing a Chapter 7 bankruptcy, you must realize that it could stay on your credit record for a very long time; some could even go up to 10 years.
And with this will greatly affect your creditworthiness, it would be difficult for you to pick up any credit loans in the future.
When this time comes, it is better to be prepared; the following could be of great help: 1.
Create a budget - in order to save enough money to pay your creditors, you need to create a specific budget.
In this way you can avoid spending too much on unnecessary things.
When creating a budget, you need to prioritize the things that are really needed, like food or groceries and bills.
Avoid buying new clothes or other stuff that you don't really need at the moment.
2.
Negotiate with lenders - another way that you can compensate with paying your debts is to talk to your lenders.
Some lenders would be willing to make a deal with you as long as they can see that you are working hard to pay them.
Some lenders could even extend your payment period so that you will have no problems in managing your money.
3.
Debt consolidation - this is also another to solve your bankruptcy issues.
However, this will put your house or other properties at risk for foreclosure.
In this case all your credit loans and other debts will be put on one bill and will put all your assets as collateral if you ever fail to pay up your creditors.
4.
Credit Counseling - there are some credit counseling organizations that can help you, they offer credit and money management advices that would be very useful in your bankruptcy problems.
Some would offer this service for free making worth your while.

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