California Bankruptcy Law

California bankruptcy law provides individuals and businesses legal options—primarily Chapter 7, 11, and 13—allowing them to resolve debt issues. Chapter 7 involves liquidation of non-exempt assets to pay creditors, often discharging remaining debts. Chapter 13 establishes a court-approved repayment plan over three to five years, allowing debtors to keep assets. Chapter 11 is typically for businesses reorganizing debt to continue operations. Bankruptcy laws aim to provide a fresh start while balancing the interests of debtors and creditors, with specific exemption rules and procedures governed by federal law and California-specific provisions.