Those who are looking for debt relief in California may be interested in filing for Chapter 7 bankruptcy. However, debtors who have already done so in the past eight years may not be allowed to file. Furthermore, individuals who have filed for Chapter 13 bankruptcy within the last six years may not be able to file for relief through a Chapter 7 proceeding. If a case has been rejected by a bankruptcy court, other filing restrictions could apply.
California residents may want to consider filing for bankruptcy if they are struggling to repay a debt. The type of bankruptcy an individual files for depends on what types of debt they have and what kind of protection the law says that they can seek. A Chapter 7 bankruptcy is referred to as a liquidation bankruptcy and eliminates most types of unsecured debts in about three to six months. An individual must pass a means test to qualify for this type of protection.
Millennials in California and elsewhere in the nation were once known for being careful with credit card debt. However, this doesn't appear to be the case anymore. A survey by a credit card comparison company reveals that two in three young adults have credit card debt, and only 13% of credit card holders within the millennial age range are completely debt-free.