There are many questions for people in California who have decided to enter into the personal bankruptcy process. Among the most important for some are the bankruptcy exemption rules and how they apply to an individual case. In fact, many find that they benefit from these rules when they are able to save their personal and real property.
In one recent case from another state, a man found that when he failed to follow some of the bankruptcy rules, he was unable to apply his bankruptcy exemption options as he may have expected. In fact, his home was sold to repay his debts. This could also happen to an individual in California, though it is rare and had never happened before in the man's home state.
The case came when the man was found by the court to have tried to hide some of his assets from creditors, including several banks. Because of this, the court allowed the banks to have their automatic stay lifted, and they were able to restart their collection efforts. In addition, the man's home was sold, and much of the equity in the property was scheduled to be used to repay creditors. If there was any money left after creditors were paid, the man would receive the remainder of his home's equity.
The choice to file for a personal bankruptcy can be difficult for some in California. The good news for them is that they can often keep much of what they own using the rules relating to a bankruptcy exemption. In most cases, people are able to go through the process with limited property losses and find that they are able to restart their economic lives without the burden of high debts and financial difficulty.
Source: Bradenton Herald, Bankruptcy judge orders house sold to pay debt, No author, Jan. 12, 2014