What are the restrictions for filing for bankruptcy?

If you are considering filing for bankruptcy in California, there are a few restrictions you should be aware of. Firstly, you are only able to file for bankruptcy if you have gone through credit counseling with an approved agency within the past 180 days. Secondly, you must have lived in the state for the past two years prior to filing for bankruptcy. Thirdly, the court may reject your petition if you are found to have attempted to fraudulently transfer your assets or income to avoid creditors. Additionally, if you have filed for bankruptcy within the past eight years, you may be denied. For Chapter 7 bankruptcy, you must have an income below the median income for California in order to be eligible. For Chapter 13 bankruptcy, you must have an income which is greater than the median income in order to be eligible. Either of these types of bankruptcy require that you complete the means test in order to be accepted. Finally, if your debts involve a significant amount of money, your creditors have the right to contest your bankruptcy and have it overturned. You must also prove that your current income is insufficient to pay your debts and that you do not have the ability to pay them off in the future. It is important to be aware of these restrictions before filing for bankruptcy as it can be a long and difficult process. It is always best to consult with an attorney before making any decisions. By understanding the restrictions and the process, you can make sure that you are making a well-informed decision.

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What are the restrictions for filing for bankruptcy?

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