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Statistics show that people filing for bankruptcy protection in California file for chapter 7 bankruptcy 80 percent of the time and for Chapter 13 bankruptcy 20 percent of the time. There are major differences in both types of filings, and determining which bankruptcy to file depends on specific circumstances, such as having a spouse.

According to the American Bankruptcy Institute (ABI), bankruptcy filings in January of 2023 were up by 19 percent nationwide over 2022. Chapter 7 filings were up from 15,177 to 16,606, and Chapter 13 filings were up from 10,741 to 14,105.

Bankruptcy, of course, is a frightening concept to most people. It seems like an admission of failure or even a scar on your personal integrity, but it can have many benefits.