California Bankruptcy Law Brief

The California bankruptcy cases fall under chapter 13 and aim at recovering the full amount of debt from the defaulter at any cost. In most cases, when a debtor files bankruptcy citing he/she has no fund to repay the debt, a thorough verification work on the declaration statement is done to get a true picture of the debtor's financial state. The process has helped to lower cases of bankruptcy abuse to a great extent. With such a strong and well defined law in place, it has also been possible to minimize the filing of cases under chapter 7 as the defaulter has to take oath and make a clear declaration that he/she has no source to fund the debt.

The bankruptcy law addresses different aspects of bankruptcy related issues. For example, the law under chapter 7 is applicable to debtors with no sufficient fund to repay the credit. Then the clause under chapter 9 applies to Govt. Municipalities, chapter 12 addresses issues of farmers and fishermen, chapter 11 is for the owners or shareholders and lastly, the law under chapter 13 applies to the wage earners, salaried employees and families. The California bankruptcy law however does not want individuals or companies to file bankruptcy cases in general. 

However, any of these statements does not say that a person with a history of bankruptcy won't get any assistance with credit in the future. There are exceptional cases when a mortgage is granted to a person after bankruptcy. After facing a bankruptcy, people still can opt for a mortgage provided he/she had a genuine circumstance that forced him/her into such a bad phase. The eligibility depends on several factors. Whether a bankrupt person deserves a mortgage or not is determined by property evaluation, credit history, monthly income, if there are any existing loan burdens, repaying capability of the applicant, etc. 

If the bankrupt person can improve his/her financial state in a year or so, managing a mortgage won't be totally impossible. It can also help a person improve the credit score and recover from bankruptcy fast. So, if a bankrupt person needs a mortgage, he/she still can manage to get one. The mortgage deal might not settle at a lucrative interest rate though.  

California bankruptcy law and Las Vegas Bankruptcy law have great resemblance. The Las Vegas Bankruptcy law also discourages filing bankruptcy cases under chapter 7 making it clear that one has to declare the true picture of the financial state. The bottom line is that California bankruptcy law encourages people to seek financial counselling and get guidance on filing cases under chapter 13. The basic purpose of this is to help people find ways to repay the debt instead of writing the whole amount off under chapter 7.