Options

• In California, residents have the option of filing for either a Chapter 7 or a Chapter 13 bankruptcy, provided that they meet certain requirements. While basic bankruptcy requirements are regulated by federal law, the laws about time restrictions and exemptions are determined by the individual state.
  
  

Income And Residency Requirements

• People wishing to file bankruptcy in the state of California must have lived in the state for a minimum of two years. Individuals filing for Chapter 7--or liquidation bankruptcy--must be able to show proof that their income does not exceed the median income for a household of the same size in California in order to be eligible. If their income does exceed these guidelines, filing for Chapter 13--or repayment bankruptcy--may be an option.
  
  

Exemptions

• California bankruptcy law allows filers to choose between two different types of state exemptions, depending on their income and whether they are filing jointly or as an individual. Regardless of the exemption chosen, bankruptcy filers are usually allowed to keep their principle assets, including their primary residence and vehicle. A bankruptcy attorney can help filers to determine which types of exemptions are best for them, and which they are eligible for.
  
  

Time Restrictions And Credit Counseling

• Anyone who is considering bankruptcy as an option must successfully complete a U.S. Treasury-approved credit counseling program before their petition to file for bankruptcy can be considered. This is a requirement in all states.
  
  In California, people who wish to file a Chapter 7 after a previous Chapter 13 filing must wait four years to become re-eligible. Anyone who has previously filed for a Chapter 7 cannot file for another Chapter 7 for eight years, and anyone who has previously filed a Chapter 13 must wait two years before filing for another Chapter 13.
  
  

Considerations

• Filing for bankruptcy does not make all of your debt disappear. In most cases, you are still responsible for paying back a portion of your debt, as well as the attorney costs, filing fees, and court costs associated with filing for bankruptcy.