Bankruptcy | California Courts | Self Help Guide

What is bankruptcy?

Bankruptcy is a legal process to help people who owe money, or debtors, get relief from debts they cannot pay and, at the same time, help people who are owed money, or creditors, get paid from assets property the debtor has.

After a bankruptcy, the debtor is no longer legally required to pay any debts that are eliminated, or discharged, in bankruptcy court.

Collectors cannot collect on the debts that have been discharged. This means that creditors have to stop all legal action, telephone calls, letters, and other types of contact about debts that have been discharged by the bankruptcy court.

Bankruptcy is governed by federal law, not California law. This guide provides basic information and resources, but there are no specific California state forms and you don't file with your county court, as you might for other legal matters.

Federal bankruptcy forms

Since there are different types of bankruptcy, one may be better for you than another, or bankruptcy may not be a good solution for your type of problem at all.

To decide if you should file for bankruptcy, you need to know:

Try to figure out if you can avoid bankruptcy on your own

Determine if you can reduce your expenses, increase your income, negotiate lower interest rates, or sell some property. You may be able to make adjustments to your situation to start paying off your debts on your own.

Learn about other options from a bankruptcy lawyer

A lawyer with expertise in bankruptcy may be able to give you additional ideas for alternatives.

Get help from a credit counseling agency

They can help you make a budget, negotiate a repayment plan with a reduced or even zero interest rate, and help you stop aggressive collection practices that are overwhelming you.

Many companies promising debt settlement for very little money take advantage of debtors by charging upfront whether or not they actually settle the debt.

You cannot discharge all debts in bankruptcy. Some of the most common debts that you cannot get rid of in bankruptcy are:

There are four common kinds of bankruptcy cases, named by the chapter of the federal Bankruptcy Code that describes them.

Deciding to file for bankruptcy is a big decision. It can affect you for a long time and it does not remove all types of debt. Any mistake in your case may mean the court can dismiss your case.

Since bankruptcy is a specialized area of law that is very complex, it is a good idea to get advice from a bankruptcy lawyer.

Guide to getting legal help

Bankruptcy resources

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Bankruptcy | California Courts | Self Help Guide