Many California residents who are faced with seemingly insurmountable levels of debt will consider filing for personal bankruptcy. When researching the matter, it will become clear that individuals can file for bankruptcy on their own, without the services of an attorney. This may seem an attractive option for many, and the prospect of saving on legal fees may seem like a good course of action. In reality, however, many who choose this path end up in worse financial shape than when they began the process.
There are rules governing how businesses are allowed to market their products and services. These laws are designed to protect consumers in California and other states from fraudulent practices. Companies found to be in violation of these laws may be subject to serious fines. This seems to have been what one company did when offering services that it claimed would help consumers with unmanageable debt.
For those in California who are struggling to make ends meet, finding a way to keep their home is often a top priority. Some are considering accepting principal reductions offered by their mortgage lender, in an effort to make their house payments more affordable. However, it is important to understand the tax ramifications of accepting such a deal. For some, filing for Chapter 13 bankruptcy may offer a better path to debt relief, while also allowing individuals to keep their home.
California consumers who are buried beneath a mound of credit card debt are certainly not alone. Many individuals turned to credit to make ends meet during times of financial hardship, which has led a significant number of people to seek debt relief. Some will fall prey to scams aimed at collecting up-front fees before any aid is rendered. In the worst cases, these companies never follow through on promises to ease a client's unmanageable debt issues.
California residents who find themselves in a difficult financial situation often feel overburdened and in need of a fresh start. For some, a bankruptcy filing may be a viable solution to their financial problems, but understandably, they may have concerns as to what will happen to their personal property if a bankruptcy proceeding is pursued. In some cases, bankruptcy exemption laws can be applied for to help protect some of their personal property.