What are the new bankruptcy laws in California? How much do you have to pay back and how long do they give u?

Answer 1

Bankruptcy laws are federal not state - as other posters mention.

However, exemption laws vary from state to state. California's are reasonably liberal.

Pay-back depends on whether you need to be in chapter 13 or chapter 7 and that depends on your income and expenses.

In general, people with income less than the national median end up filing chapter 7 cases unless they have substantial assets they want to protect. People with income in excess of the national median end up paying their disposable income over a 5 year period under a plan unless they have very high secured debt and approved expenses.

You need to complete form B22A availalble online at http://www.cacb.uscourts.gov - the LA Bankruptcy Court's website to see how this works. The numbers are tricky and you can find them at the United States Trustee's website - link there from http://www.usdoj.gov (link to United States Trustee program)

For general information about bankruptcy, the moranlaw site quoted is good. Mine is http://www.bankruptcy.lakelaw.com

also try http://www.abiworld.org and check consumer links.

Answer 2

Bankruptcy laws are federal, not state, so the new laws apply to the whole country. Bankruptcy always has and currently is an individualized system - there was and is not a set amount you have to pay back or timeframe in which to do it.

The change has to do with how they calculate whether you qualify for chapter 7 bankruptcy, in which all your non-essential assets are sold and the proceeds given to your creditors, then the rest of the debt is forgiven. This used to be extremely common. Now, you must pass a means test, in which the judge determines if you could pay off a substantial portion of your debt using disposable income over a 5 year period, as allowed under chapter 13. With this new law, a large number of people who would otherwise have filed chapter 7 are forced to file chapter 13.

Answer 3

You can find some information on filing BK in California at:
http://www.moranlaw.net/CAtwists.htm

Go see several lawyers for a free initial consultation so that you can find out if you would qualify for a chapter 7 or chapter 13 bankruptcy.