There are many concerns for people who decide to file for a bankruptcy in California. For some, people the concerns about a bankruptcy surround their future ability to get a job or obtain credit. For others, the need to save their home from foreclosure is important. Many of these concerns can be addressed by a Chapter 13 bankruptcy.
In California, a Chapter 13 bankruptcy is often referred to as one for wage earners. This is because a steady income is needed for this type of filing. After the bankruptcy begins, a trustee is assigned to the case. This person helps to review and supervise a repayment plan that usually lasts for a period of three to five years. It is intended to repay much, if not all, of the debts of the person filing a bankruptcy.
Regardless of the bankruptcy chapter chosen, a person in our state may find that they can keep much of their personal property. This is typically achieved through bankruptcy exemption. In many cases, those who seek a bankruptcy work to keep assets such as their home and car if they can demonstrate that they can make the payments pursuant to a debt reorganization plan that is acceptable to the court.
Regardless of the reason for the filing of a bankruptcy, under Chapter 13 or otherwise, the process can seem daunting at first. Because of the complexity of the process, some may find that they could benefit from a review of the applicable laws and procedures for a bankruptcy proceeding. This review can help to ensure that the best choice is made regarding the various alternatives, and that a fresh financial future can begin after the bankruptcy is completed.
Source: Global Grind, "Wisdom Wednesdays With Lynn Richardson: Bankruptcy Myths 2," Kelsey Paine, March 13, 2013