Rocklin, California Chapter 7 Bankruptcy Attorney
Chapter 7 bankruptcy has helped many Rocklin residents gain freedom from debt. Chapter 7 can erase your debts, stop debt collectors from contacting you, and delay foreclosure proceedings, eviction, and utility shut-offs. If you have been struggling to keep up with your mortgage, your utility bills, your car payments, your medical expenses, your credit card payments, or other burdensome expenses, the California bankruptcy process may offer the debt relief you have been searching for.
The Rocklin Chapter 7 attorneys of The Bankruptcy Group have years of experience representing individuals and business owners in personal bankruptcy proceedings and business bankruptcy proceedings in the United States Bankruptcy Court for the Eastern District of California. Our legal team handles Chapter 7 bankruptcy cases on behalf of individual filers, married couples filing jointly, and an array of business entities, including corporations, limited liability companies (LLCs), and partnerships. If you live in the Rocklin area and need help reducing the debt you owe, contact The Bankruptcy Group at (800) 920-5351 for a free legal consultation about Chapter 7 today.
How Does Chapter 7 Work in California?
It’s important to understand certain terminology when considering bankruptcy. First, there are multiple types of bankruptcy, each called a “chapter” after its chapter in the U.S. Bankruptcy Code. The most common type of bankruptcy is Chapter 7 bankruptcy, followed by Chapter 13. The person who files bankruptcy is called the “debtor” or “filer.” Parties to whom the debtor owes money are called “creditors.”
When a debtor files Chapter 7, an official known as a “trustee” is assigned to “liquidate” (sell) some of the debtor’s property. Proceeds from the sale help pay the debtor’s creditors for debts owed as of the filing date. However, “bankruptcy exemptions” allow debtors to protect certain assets from liquidation. In other words, exempt assets cannot be sold. Depending on the circumstances, some Chapter 7 debtors can exempt and keep all of their property, including vehicles and real property.
If the debtor complies with all bankruptcy rules and requirements, he or she should receive a “discharge” from the bankruptcy court, effectively ending the case. The discharge releases the debtor from further liability for “dischargeable debts,” meaning the debtor does not have to pay these debts.
Two of the most significant examples of dischargeable debt in Chapter 7 include debts from medical bills and debts from credit card bills. In addition to medical debts and credit card debts, other dischargeable debts that can be erased in Chapter 7 include:
- Debts from business loans
- Debts from past-due utility bills
- Debts from personal loans
- Debts from income tax obligations or student loans, in certain cases
Why File Chapter 7 Bankruptcy in Rocklin?
There are many ways to get a handle on debt which has spiraled out of control. Chapter 7 bankruptcy is only one approach, and is not appropriate for every situation. Depending on your circumstances, you may be better served by Chapter 13 bankruptcy, or, though unlikely, even Chapter 11 bankruptcy for individuals. If we determine that we can be of assistance to you, our Rocklin Chapter 7 lawyers can provide a detailed and honest assessment of the strongest strategy for reducing your debt.
Just as there are many ways to reduce debt, there are also many reasons for filing Chapter 7 bankruptcy. Reasons to consider filing Chapter 7 include the following benefits:
- If you follow bankruptcy laws carefully, you will have the opportunity to eliminate the debts that have been holding you back financially and causing stress about your future. Medical debt, credit card debt, and business debt can all be erased.
- As soon as you file Chapter 7, you will be protected by what is called the “automatic stay.” The automatic stay, a feature of bankruptcy which typically remains in effect for the duration of a case, prevents debt collectors from contacting you or taking further actions to collect debts. That means wage garnishment, foreclosure, eviction, and utility shut-offs could be immediately halted or delayed.
- Though the bankruptcy will initially lower your credit score, it can also help your credit score in the long run. With various debts lifted from your shoulders, you will have more freedom to practice the habits that build good credit, such as consistently making full and timely payments on utility bills or a secured credit card.
- Before you can file bankruptcy in Rocklin, you will be required to receive credit counseling from an approved agency. Later, before the bankruptcy court will grant your discharge, you will be required to receive debtor education, also from an approved agency. These courses are designed to teach practical money management skills, which can help you make sound financial decisions long after your case concludes. That reduces your odds of incurring major debt in the future, so that you can avoid filing for bankruptcy a second time.
Rocklin Chapter 7 Bankruptcy Lawyers Can Help
Though Chapter 7 bankruptcy can have positive impacts on an individual or business, it can also be a difficult and confusing process without legal representation. In order to unlock the potential benefits – and avoid the potential pitfalls – it is crucial to be represented by an experienced Chapter 7 bankruptcy attorney in Rocklin.
We represent debtors in Rocklin and the surrounding communities of Placer County and the Sacramento–Arden-Arcade–Roseville area, such as Auburn, Granite Bay, Lincoln, Loomis, and Penryn. To learn more about how The Bankruptcy Group can assist with your Chapter 7 case, contact our law offices at (800) 920-5351 for a free legal consultation.