Folsom Bankruptcy Attorney
Folsom, California is a beautiful and economically vibrant community where many hard-working Californians have established roots. The communities in Folsom and throughout the Sacramento area have been provided with numerous economic activities within a picturesque region of the nation. Many individuals have found economic success in Folsom; however, some people have run into serious financial difficulties often through no fault of their own.
The bankruptcy lawyers of The Bankruptcy Group can help people living in and around Folsom determine solutions to their financial problems. Our attorneys can explore both bankruptcy and non-bankruptcy options. To schedule a free and confidential consultation at our Folsom or Sacramento law offices, call our law firm at 1-800-920-5351.
What Are the Main Reasons for Excessive Household Debt in Folsom?
The main reasons for excessive debt that lead to inabilities to pay bills and meet obligations largely mirror the nationwide trends. Many of the difficult financial situations that necessitate a Chapter 7 or Chapter 13 bankruptcy filing are motivated by medical expenses. In fact, one study conducted by NerdWallet in 2013 found that approximately 643,000 Americans declare bankruptcy each year due to medical bills.
The fact of the matter is that a serious medical issue can impact both sides of one’s budget. On the income side, a serious illness or injury often requires an individual to stop working or reduce their hours. Even when workers’ compensation or disability insurance is available, this income is often only a mere percentage of the individual’s regular income. On the expense side, serious medical issues frequently require a number of tests to be conducted and may require rehabilitation or expensive medications over an extended period of time. Thus, medical bankruptcies are especially common because they can impact both sides of an individual’s or family’s balance sheet. Other common reasons for bankruptcy include excessive credit card debt, a divorce, and falling behind on one’s home mortgage.
When Should a Folsom Resident Consider a Chapter 7 Bankruptcy Filing?
A person living in Folsom, California may consider a Chapter 7 bankruptcy filing when two conditions are present. First, the majority of their debt and obligations are unsecured. Unsecured debts include credit card bills, medical and hospital bills, and any other financial obligation that is not secured by the property. The second condition which should be satisfied is the ability to ensure that all the property a filer wishes to keep is protected by a California bankruptcy exemption. Alternatively, individuals with little property and few assets are also often good candidates for a Chapter 7 filing.
Should I File for Chapter 13 Bankruptcy in Folsom?
In certain scenarios, Chapter 13 bankruptcy may produce a more favorable result. Certain individuals may be unable to satisfy the Chapter 7 means test and may be forced into Chapter 13. While a Chapter 13 bankruptcy takes more time than a Chapter 7 bankruptcy, there are reasons why an individual would voluntarily elect to enter into this type of a bankruptcy. A common motivating factor is that neither the California or federal bankruptcy exemptions will adequately protect the individual’s property. Additionally, a Chapter 13 bankruptcy filing can also be used to secure an additional three to five years to pay down debts while keeping all your property. Like Chapter 7, at the end of a successful Chapter 13 plan, remaining non-priority debt can be discharged.
Bankruptcy Lawyers Can also Handle Folsom Small to Mid-sized Business Bankruptcies
The attorneys of The Bankruptcy Group can also provide legal guidance for debt issues facing small to mid-sized businesses in and around Folsom. If your business has run into difficulties, you may consider:
- Small business Chapter 7 bankruptcy – If you are a sole proprietor of a business and have decided that your business is no longer viable due to debt, it may make sense to liquidate the company and start fresh. After the close of your Chapter 7 bankruptcy, you may even form a new company performing the same work but without the debt dragging on your operations.
- Small Business Chapter 13 bankruptcy – Similarly, sole proprietors and other business owners who have not formed an entity to separate personal and business debts and assets may also consider a Chapter 13 filing to establish a payment plan and reorganize debts.
- Chapter 11 Reorganization – When a separate business entity has been established, a Chapter 11 reorganization can get a business back on the right financial track.
The above sets forth only some of the potential bankruptcy solutions that a company can use to eliminate or reduce its debt. Additional bankruptcy or non-bankruptcy options may apply in your scenario.
Work with a Folsom Bankruptcy Attorney Today
If you are concerned about household or business debt in Folsom, the bankruptcy lawyers of The Bankruptcy Group may be able to help. To schedule a free and confidential consultation, call us at 1-800-920-5351 today.