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by webmaster | Jan 6, 2020

The New Homestead Exemption Law Will Allow More People to Qualify to File for Bankruptcy Protection

The California homestead exemption (protected equity) is a regulation that safeguards a homeowner’s principal residence from creditors in the case of bankruptcy, a judgment creditor, or death of a spouse.

California Bankruptcy Exemptions

The Bankruptcy Code allows each individual who files for bankruptcy to keep basic assets that are necessary for the debtor’s “fresh start” after bankruptcy. The property is called the debtor’s “exempt property.”

Chapter 13 Eligibility

Under this chapter, debtors propose a repayment plan to make installments...

Chapter 7 Eligibility

Chapter 7 provides for “liquidation” – the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.

Means Test

Generally, any person who is 18 years or older may file bankruptcy, regardless of their citizenship status. Married couples may file jointly or individually.

Credit Cards after Bankruptcy

Even though it may be more difficult to get some loans and credit after bankruptcy, interestingly, you will still likely receive offers for credit cards and be able to obtain other types of loans.

Bankruptcy is a Solution, Not a Stigma

People are often amazed at the relief and peace that returns to their lives after filing for bankruptcy. Often they do not realize how much pressure they are under until after it is gone.

Do I Qualify for Bankruptcy?

Generally, any person who is 18 years or older may file bankruptcy, regardless of their citizenship status. Married couples may file jointly or individually.

Is Chapter 7 or Chapter 13 Bankruptcy Better?

It all depends on the specific situation of the debtor.

Who can file for Chapter 13 Bankruptcy?

People who usually qualify for Chapter 13 make enough income to cover their living expenses but not enough to completely pay their debts.

Chapter 7 Bankruptcy Exempt Property

The following is a partial list of property exempt from being seized and sold pursuant to the enforcement of a judgment or bankruptcy liquidation:

Bankruptcy Overview

Many individuals in the current economic climate are facing crushing debt that feels impossible to handle. Even in the best of times, circumstances beyond our control, such as accidents, illness, or an unexpected business failure can put one in a very difficult...

Stop Foreclosure

For many individuals and families, their home is their greatest asset. At Hallstrom, Klein & Ward LLP, we understand the emotional and financial value of your home, which is why we work diligently to help you explore all available foreclosure prevention options.The...