Bankruptcy is a process authorized under federal law that allows individuals and businesses to discharge some of their debts. If you are overwhelmed with debts, you may want to try to file for bankruptcy in California. Depending on the type of bankruptcy you file, you may have to make monthly payments for 36 to 60 months. If you qualify for a Chapter 7 filing, you will not have to make payments to complete the bankruptcy.
Means Test
You must pass the means test to qualify for a Chapter 7 filing. This test looks at your income, family size and expenses. If your income is less than the median income for your state, you should be able to file a Chapter 7. The median income amounts vary based on the size of your household.
If your income exceeds the median, you can still file Chapter 7. You will need an analysis of your income and eligible expenses to determine if you have any funds leftover each month. You should qualify for a Chapter 7 bankruptcy if no funds are available.
Complete Credit Counseling
Before filing for bankruptcy, you must complete a credit counseling class. The U.S. Bankruptcy Court has a list of approved classes you can take. Certification of your successful completion will need to be provided before you file for bankruptcy in California.
Pay Charges and Fees
You will need to pay the filing fee to initiate your bankruptcy petition. In addition, if you have an attorney represent you, you will also need to pay their charge for services.
No Recent Filing
Another requirement to file for bankruptcy in California is that you cannot have filed and received a recent discharge. Your new filing must be at least four years from the date of any Chapter 7 discharge or two years from a Chapter 13 discharge.