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What are the steps I need to take to file for bankruptcy in California?

Picture of Chris Battis By   ·  1 minute read

To file for bankruptcy in California, individuals must follow the following steps:

  1. Decide Which Type of Bankruptcy to File: There are two types of bankruptcy that individuals can file under in California: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy is often referred to as “liquidation” because it forgives most unsecured debts, while Chapter 13 bankruptcy involves a payment plan to pay off debts over three to five years.
  2. Take a Credit Counseling Course: As per the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), individuals filing for bankruptcy in California must take a credit counseling course prior to filing.
  3. Fill Out Bankruptcy Forms: To file for bankruptcy, one must complete a bankruptcy petition, a schedule of assets and liabilities, a schedule of income and expenses, and a statement of financial affairs.
  4. File Bankruptcy Forms: Once the forms have been completed, they must be filed with the United States Bankruptcy Court. There may also be a filing fee, which ranges from $245.00 to $335.00, depending on the type of bankruptcy being filed.
  5. Attend the Meeting of Creditors: Individuals filing for bankruptcy must attend a creditors’ meeting where they will be asked questions about their financial affairs under oath. These meetings are conducted by a court-appointed trustee.
  6. Complete a Debtor Education Course: After filing for bankruptcy, individuals must complete a debtor education course before their debts are discharged.

Potential Limitations or Exceptions: The bankruptcy process can be complex, and individuals should consider consulting with a bankruptcy attorney to ensure that they are filing for the appropriate type of bankruptcy and to receive guidance throughout the process. Additionally, certain debts like student loans and child support payments cannot be discharged through bankruptcy.

Further Action: Individuals filing for bankruptcy should be prepared to gather documentation related to their debts and financial affairs. Additionally, they should start to consider how to rebuild their credit after their debts are discharged. Consumer credit counseling organizations can be a useful resource for individuals who have filed for bankruptcy or who are looking to improve their credit.