Alternatives to Filing for Bankruptcy in California
Filing for Chapter 7 or Chapter 13 bankruptcy can be a life saver, but don’t rush into it before considering whether it’s the best solution for you. Under some circumstances, even if you’re facing a mountain of unpayable debts, bankruptcy may not be your best option.
Who Files for Bankruptcy?
The typical bankruptcy filer is a person already in fragile economic circumstances, often with large amounts of credit card debt, who then suddenly gets hit by hard luck—like job loss, injury, divorce, or uninsured medical expenses—leading to unmanageable payments and insurmountable penalties.
Bankruptcy is designed to help people like this, who need help making a clean break—to get a fresh start on life, rather than struggling under the crushing burden of unpayable debt.
When You Might Not Need (or Want) to File for Bankruptcy
If You're Judgment Proof
It you’re truly broke, you may be what the law calls “judgment proof.” This simply means that creditors can’t grab your property or your salary because there’s nothing the law allows them to take. more...