Chapter 7 bankruptcy offers a way for debtors in California and other states to return to solvency. However, not everyone will qualify for a liquidation bankruptcy. To qualify, an individual will need to pass the means test. It's important to note that only individuals or married couples can file for this type of protection. Debts owed by corporations or LLCs are not allowed to be discharged through this process.
There may be few things in life as stressful and daunting as dealing with overwhelming financial obligations. If you know how it feels to struggle under the weight of debt, you may wish to gain a better understanding of your available options for relief, but deciding on a path can be an intimidating process.
When the financial crisis was at its peak, almost 1.6 million people in California and the rest of the United States filed for bankruptcy. Almost one decade later, the number of filings is less than 800,000. However, the difference in the number of filings is not an indication of economic health by itself.
California residents who are struggling to cope financially will likely know that debt collection companies can be extremely aggressive. A study conducted by the Consumer Financial Protection Bureau revealed that one in four of the 70 million Americans who have had dealings with debt collectors felt threatened. It is often the possibility of legal action that causes the most concern. However, there are several things that consumers can do if they are sued over an unpaid bill.
According to a survey from The Ascent, 10% of respondents said that they had six or more credit cards. While having multiple credit cards can pose problems for California residents, there can also be benefits to having multiple cards. One of the key benefits is the ability to quickly raise a credit score as an individual will make multiple payments over a short period of time.