Chapter 7 bankruptcy is a popular option for people who are ready to discharge their debts and move forward with their lives. Unfortunately, not everyone qualifies for this process. Individuals must earn less than the median California income to file for Chapter 7, which leaves many people still in desperate need of debt relief. For these people, Chapter 13 bankruptcy can be an excellent option.
No one wants to end up in a situation where his or her finances feel out of control. Unfortunately, people in California and elsewhere often find themselves struggling with overwhelming debt. Try as they might, they commonly cannot get out from under these burdens on their own. Luckily, Chapter 13 bankruptcy can usually help those who qualify reach more stable financial ground.
For most people in California, earning a college degree is the first step on the path to a successful and rewarding career. Unfortunately for many, it is also the first step towards overwhelming debt. Although student loans usually cannot be discharged in Chapter 13 bankruptcy, the process can still provide vital debt relief that allows borrowers to better focus on their loan repayments.
Most people in California have a certain idea about the type of person who needs bankruptcy protection. The image of an individual who constantly spends well outside of his or her income usually comes to mind, even though this is far from the standard. In many instances, people find themselves in need of bankruptcy due to unexpected bills, financial emergencies or a sudden and unexpected loss in income. For rapper Lil' Kim, it was the latter that drove her to file for Chapter 13 bankruptcy.