Stress Reduction From Filing Bankruptcy In California Courts

There are many advantages for filing bankruptcy in California. This used to be considered a last resort only option, but was created to relieve the pressure. Many individuals and families have lived years with heavy financial stress that seemed to only get worse. With rising medical costs, lower wages, and job loss this relief is sorely needed by many in order to be able to start fresh.

There is no such thing as debtor’s prison. If a debt collector tells you that you will go to jail for not paying a bill, they are not exactly living in this century. However, the harassment, frustration, and difficult choices that are created by heavy financial debts creates a prison of its own. Making the choice between buying groceries for the family, or paying a bill causes as much stress. These are the very reason the laws and courts were created.

This is a way out. When financial debts become too much to bear, the weight of the daily decisions can be overwhelming. When the phone rings and you are afraid to answer for fear of talking to another creditor, it is time to decide whether this is the life you want. Bankruptcy is a way for people to climb out from under the pile of bills.

When the papers are filed, the calls stop immediately. The constant, unwanted attention that debt collectors give you at home, work, and now on the cell can be stopped within hours of the paperwork being filed. In fact, from this point on, any collector who calls is violating the law and can be fined by the court for continuing to attempt collection activities.

There are a few words that are used commonly through the proceedings that are fairly easy to understand. The first is called a petition, which is the paperwork that is filed with the court. Exemptions are legal amounts of property that cannot be taken even with liquidation. There is often a total dollar amount included for all property that can be excluded. The automatic stay is sent to creditors to tell them to stop all collection activities. The happiest word is the discharge. When this word is enacted, all debts are cleared and you are freed from the debt burden.

There are three types of bankruptcy available. Chapter 7, 11, and 13 are all designed for specific types of discharge. Essentially, you can eliminate all debt, or reorganize it. Eliminating the debt is popular when there are not large amounts of property to be included. Reorganization restructures the debt so the payments are reasonable and the final payout is less. Discussing property value with an attorney can help determine what is the best option for filing the petition.

When all is said and done this gives people the chance to start over. Having the financial slate wiped clean gives people a chance to begin rebuilding their credit without the overwhelming burden they faced before. The annoying calls stop. The stress is relieved and life begins again.

Filing bankruptcy in California may seem like a difficult decision at first, but the benefits are so much greater because the stress is lifted. People who have taken this step often comment on how quickly their lives returned to the stress free life they had before.

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