Residents of California often know that filing for Chapter 13 bankruptcy is a viable debt relief option, but may not understand exactly how the process works. One recently published piece aims to inform consumers about the process of working through a Chapter 13 bankruptcy process. As with any significant financial decision, researching one’s options is the best way to approach the matter.

The first step for anyone considering filing for Chapter 13 is to complete a credit counseling course offered by an approved organization. This process can help a consumer decide if bankruptcy is the best debt relief solution. Be prepared to turn over all financial information, including income, bills, assets and miscellaneous financial items. There are certain expenses that cannot be eliminated through bankruptcy, including child support, tax debts and alimony.

Bankruptcy will have an impact on one’s credit, which is important to understand. However, it is entirely possible to rebuild one’s credit score, and many filers are able to emerge with a better score than they had at the onset of the process. It is also possible to receive credit and financing during the Chapter 13 bankruptcy process, which can take from three to five years to complete.

The Chapter 13 bankruptcy process is different for each individual. A range of factors come into play when determining the budget for repayment, as well as the amount of debt that can be discharged at the end of the process. California consumers who wish to learn more about the benefits of filing for this form of personal bankruptcy are encouraged to fully research the process and seek advice concerning the paperwork aspects of filing.

Source: Yahoo! Finance, “Chapter 13 bankruptcy: How it works,” Susan Ladika, April 19, 2013