Filing for Bankruptcy in California

Do You Need to File a Bankruptcy?

How do you determine if you need to file a bankruptcy case?  The best way is to have a consultation with a bankruptcy attorney in your area to discuss your situation.  There are many alternatives to filing bankruptcy, and they should all be explored before deciding to file a bankruptcy.   Everyone's situation is different, and it is important to determine the optimal course based on your specific circumstances and goals.

 To file a bankruptcy case, you first hire an attorney, then provide the necessary information for him or her to prepare the bankruptcy petition and schedules, which you ultimately sign under penalty of perjury.  These are then filed with the court beginning the case (which also puts into effect the "automatic stay" which stops your creditors from taking or continuing any efforts to collect on their debts).   To see a road map of how the bankruptcy process works, please visit http://www.bklaw.com/california_bankruptcy/bankruptcy_process.html.

Filing for bankruptcy is a serious decision that should only be made after consulting with an experienced bankruptcy lawyer.  In determining which Chapter of Bankruptcy might be best for you to file, please review the following:

Everyone who is considering filing a bankruptcy case should first read the Chapter 7 information regardless of what their circumstances are as it contains both general and specific information on debts that can be discharged and other information. Chapter 7 is always an option to be considered.

If you are a consumer with relatively few assets and mostly unsecured debt (such as some credit cards), see the information under Chapter 7 to help determine whether filing that chapter of bankruptcy is best (although you should only decide after having a comprehensive consultation with a qualified bankruptcy attorney).

If you have substantial assets (more assets than you think can be exempted) and you want to protect them; or, if you are behind on payments on a secured debt (such as your mortgage, car or other secured debt) and need time to catch up on your payments, you should see the information under Chapter 13.

If you are a corporation or own your own business (dba or sole proprietorship), and you want to keep the business operating, you should examine the information in both Chapter 13 and Chapter 11.

Of course, before making any decision you should review all three choices and discuss them with an attorney, but your answers to the above questions should help to focus your analysis.


Click for Additional Information and Frequently Asked Questions if:

• You are a Creditor (owed money by someone in bankruptcy), or
• You are being sued by someone in bankruptcy