| Bankruptcy courts | 4 districts (Northern, Eastern, Central, Southern) |
|---|---|
| Bankruptcy exemptions | Choice of two state systems |
| Settlement fees | None until a debt is settled (FTC rule) |
| Free housing counseling | HUD: 800-569-4287 |
Debt settlement in California
If you have $10,000 or more in credit card, medical or other unsecured debt and can't keep up with the minimums, a settlement company may negotiate with your creditors to accept less than you owe. You save into an account you control, and no fee is charged until a debt is settled. Expect your credit score to drop during the program, and keep in mind that forgiven debt may count as taxable income. How debt settlement works.
Debt consolidation loans in California
If you're keeping up with payments but paying high interest, a consolidation loan from a lender licensed in California can replace several balances with one fixed payment. Compare the APR and total cost, not just the monthly payment. How consolidation works.
Personal loans in California
For a one-time expense, we connect California residents with licensed lenders and loan marketplaces. Prequalifying usually uses a soft credit check. What to compare.
Bankruptcy in California
California has 4 federal bankruptcy court districts: the Northern District, the Eastern District, the Central District and the Southern District of California. Which one you file in depends on the county where you've lived most of the last 180 days.
California doesn't allow the federal exemptions, but it has two separate state exemption systems, and you choose one. Which one protects more depends largely on how much home equity you have.
Chapter 7 can discharge many unsecured debts within months if you pass the means test, which compares your income with the median for a household your size in California. Chapter 13 sets up a three to five year plan and can stop a foreclosure. The U.S. Trustee Program publishes the current means test figures. We'll connect you with a California bankruptcy attorney, many of whom offer a free consultation. Chapter 7 vs. Chapter 13.
Mortgage and foreclosure help in California
If you're behind on your mortgage, call your servicer and ask about a loan modification, forbearance or repayment plan. Federal rules give extra protection when you submit a complete application before a foreclosure sale is scheduled. Free HUD-approved counselors serve California at 800-569-4287, and if refinancing makes sense, Ibex Capital Mortgage can review your options. How loan modification works.
California questions
Is debt settlement legal in California?
Yes. Debt settlement is legal in California, and settlement companies must follow the FTC's rule against charging fees before settling a debt. We refer California residents to companies that hold the registrations or licenses the state requires.
How do I file for bankruptcy in California?
You take an approved credit counseling course, then file a petition in the bankruptcy court for your district. California has 4 federal bankruptcy court districts: the Northern District, the Eastern District, the Central District and the Southern District of California. Which one you file in depends on the county where you've lived most of the last 180 days. A local attorney can handle the filing for you.
What can I keep if I file bankruptcy in California?
California doesn't allow the federal exemptions, but it has two separate state exemption systems, and you choose one. Which one protects more depends largely on how much home equity you have.
Can I get help with my mortgage in California?
Yes. California homeowners can ask their servicer about a loan modification, forbearance or repayment plan, and can get free help from a HUD-approved housing counselor at 800-569-4287.