California Bankruptcy Law (CA)

California state laws regulating Chapter 7 and Chapter 13 create extended liability

Each year, as the economy rises and real estate markets grow more complex, the options for financing and re-financing mortgages grow in lock step. As a result, California state laws regulating mortgage activity also grow more complex, and create extended liability for all home owners. With the popularity of interest only loans, and what many analyst believe is an overheated market, the potential for liability disputes is exacerbated by new amendments to the Code that affect all people who file.

Title to real estate is determined by California state law, as well as creditors rights under liens, note enforceability, permissible collection procedures, and a host of other related issues. If forced to file, all information contained in application forms becomes admissible in as it relates to issue in Chapter 7 and 13. If you have wondered why many credit card applications request total income, but seldom verify, it because of the potential to overstate in an attempt to gain approval. Then, if filing later, these misrepresentations are admissible against debtors that may prevent discharge.