Many California residents are aware that there are certain exemptions that can be made during a personal bankruptcy case. That means that certain types of assets will not be included in the bankruptcy process, allowing individuals the right to make use of those assets as they see fit. Certain types of retirement savings are among the assets eligible for bankruptcy exemption. In one recent case, a bankruptcy court in California considered which types of retirement savings can be exempted from a Chapter 7 bankruptcy.
When a California homeowner encounters serious financial difficulties, filing for personal bankruptcy can be a very appealing option. Bankruptcy laws are written to protect consumers, but there are instances in which those protections seem to fall short of that goal. An example may be found in the use of the bankruptcy exemption, which may not adequately shield homeowners from losing the value of their home.
For those in California who are preparing to file for personal bankruptcy, the safety of their retirement investments is often a top concern. In general, money placed within an IRA is classified as exempt from the bankruptcy estate. This means that those funds will not be used to repay creditors, and will remain in place throughout the entire process, due to the bankruptcy exemption.
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.
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 California, when a person finds that they are unable to repay the debts that they owe, they may consider filing for a personal bankruptcy. This filing can be a good choice because of the protections offered by the bankruptcy exemption rules that apply to each case. These rules allow for some people to keep the property that they own when they file.
California readers may be surprised to learn that the number of people who default on their student loans is rising. In fact, as many as 6.7 million people are more than 90 days late in their student loan payments. This is a full 17 percent of all people saddled with these loans. Many of these people may consider filing for a personal bankruptcy, particularly in view of the fact that there appears to be a move underfoot regarding the potential for discharge of student loans in bankruptcy. If they do, they will likely have questions regarding possible bankruptcy exemption and discharge options.
There are many issues to consider when a person in California decides whether or not to file for bankruptcy. Among these are the bankruptcy exemption rules that allow such an individual to protect many of the assets that they own when they file the case. These exemptions can, in many cases, protect a family home or other property, though each situation may be different.
Californians know that the past few years have been financially difficult for many people throughout the state. With widespread job loss and plummeting real estate values, the general financial picture has not been a pretty one. Some El Cajon residents have discovered that filing for personal bankruptcy has been a necessary step to get out from under crushing debt and move in the direction of a better financial future.