Many people in California know that it can be difficult to file for bankruptcy in our state. This is not because a personal bankruptcy is unavailable to consumers, but because of the emotional challenges sometimes involved in the process. However, some may find it helpful to learn that the filing for personal bankruptcy in our nation may be helping the economy recover.
In fact, one recent report that may apply to California debtors suggests that the fresh financial start offered to those who file for bankruptcy may allow them to reenter the credit system. Such individuals may be able to obtain new lines of credit, including car and student loans. This new credit is helping to drive an economic recovery from the recent recession that affected so many people in our state.
The same report notes that the worldwide recovery has been slowed by the more stringent laws governing a personal bankruptcy filing in foreign lands. Because only a few people can file in those lands, they are saddled with debts that their counterparts in our nation may be able to have discharged through bankruptcy. In many cases, those who file for a personal bankruptcy here can have their unsecured debts discharged at the end of the process.
There are many laws that govern the filing of a personal bankruptcy in California. Because of the complexity of the filing, some find it helpful to learn as much about the process as possible before entering into it. To achieve this, it may benefit a person to review the chapters of the bankruptcy code to determine which one best fits their situation.
Source: moneynews.com, "MarketWatch: Bankruptcies May Be Stifling European Growth, Helping America's Growth," John Morgan, Feb. 8, 2013