Folsom Chapter 13 Bankruptcy Attorney
Overwhelming debt is more than simply a financial problem – it’s a psychological burden that creeps into every aspect of your daily life, causing stress, anxiety, sleeplessness, and fear about how you will secure a happy, comfortable future for yourself and your family. When you are drowning in unmanageable debt, even a task as simple as picking up the phone or opening a letter from your mailbox can create a sense of dread that makes life feel claustrophobic. Filing for Chapter 13 bankruptcy may be an optimal solution to help you manage your debts, restore your financial health, and get you back to simply enjoying life.
Experienced Folsom Chapter 13 Bankruptcy Lawyers
Allow the Folsom Chapter 13 bankruptcy attorneys of The Bankruptcy Group to help you find a manageable path back toward financial solvency. Our skilled, accomplished, and respected team of California bankruptcy lawyers has considerable experience working with couples and individuals who need assistance filing for Chapter 13 bankruptcy in California; we strive to make the process as simple and stress-free as possible for each client we represent.
We offer free initial consultations, so there is no financial risk in contacting us to discuss Chapter 13 bankruptcy, and whether it’s right for you. To talk about Chapter 13 bankruptcy in a free and confidential legal consultation, call The Bankruptcy Group at (800) 920-5351.
Is Chapter 13 (Reorganization) Bankruptcy the Right Filing Option for Me?
There are several different kinds of bankruptcy, each named for its corresponding chapter of the U.S. Bankruptcy Code. There are primarily two types of bankruptcy for consumer debt, as opposed to debts that are held by businesses: Chapter 7 bankruptcy, which is sometimes called “straight” or “liquidation” bankruptcy, and Chapter 13 bankruptcy, which, along with Chapter 11, is sometimes called “reorganization” bankruptcy.
Chapter 7 and Chapter 13 are alike in that they share the same core purpose: helping filers manage their financial obligations to lenders and creditors. However, there are some major differences between Chapter 13 and Chapter 7 which are important to understand.
The following is an oversimplification, but for the sake of concise comparison, here is how they differ: Chapter 7 bankruptcy is faster and simpler than Chapter 13, but the drawback is that in Chapter 7, a court-appointed trustee may sell property to creditors, unless the property is protected by an exemption. Chapter 7 is designed primarily for low-income debtors who cannot repay a significant portion of their debts.
While Chapter 7 cases conclude in a matter of months, it takes anywhere from three to five years for a Chapter 13 bankruptcy case to be discharged. Further, Chapter 13 filers must create and adhere to a comprehensive reorganization plan – hence the term “reorganization” bankruptcy – which provides for gradual, manageable repayments to creditors. That is why Chapter 13 takes longer to complete than Chapter 7.
One major advantage of filing for Chapter 13 bankruptcy is that filers are permitted to keep more of their property and assets, in addition to other benefits. Our attorneys will assess your debts, goals, and life circumstances in detail to determine whether Chapter 13 bankruptcy is the appropriate option for you.
What Are the Benefits of Filing for Chapter 13 in California?
“Bankruptcy” has become something of a dirty word, evoking fear and anxiety in the hearts of those who are struggling to manage their financial obligations. This is unfortunate and undeserved, because despite bankruptcy’s negative reputation, the fact of the matter is that Chapter 13 bankruptcy can be a very positive, empowering, and helpful financial management tool under the right set of circumstances.
Indeed, for the right filer, there are many benefits to Chapter 13 bankruptcy in Folsom – benefits which extend beyond simple debt management. In addition to helping you get control of your debts, Chapter 13 bankruptcy can also:
- Temporarily shield you from debt collectors. When you file for Chapter 13 bankruptcy in California, you will fall under the protection of a temporary court injunction referred to as “the automatic stay,” which generally prohibits creditors from foreclosing on your home, repossessing your vehicle, garnishing your wages, and taking other debt collection measures. The automatic stay will give you financial breathing room, creating a window for you to gather and plan.
- Empower you to build better credit in the future. While bankruptcy will initially cause a drop in your credit score, it will also position you to get your debts under control, which will allow you to make timely payments going forward, thus helping to rebuild your credit in the long term. Additionally, Chapter 13 bankruptcies remain on your record for a shorter period of time than Chapter 7 bankruptcies, which is beneficial with regard to loan eligibility.
Filing for Chapter 13 bankruptcy doesn’t have to be a frightening or stressful part of your life. With assistance from a knowledgeable, compassionate, skilled, and experienced attorney, like those of The Bankruptcy Group, Chapter 13 bankruptcy can be the first step on a rewarding journey back to financial stability. To talk about whether Chapter 13 bankruptcy could be right for you, call The Bankruptcy Group at (800) 920-5351 for a free consultation. We will keep your information confidential.