Rancho Cordova, California Chapter 7 Bankruptcy Attorney
Whether the source is a hospital bill, a credit card, or a loan that was used for a failing business, many Californians feel saddled with debt that they cannot seem to get rid of. If this describes you, and you reside in Rancho Cordova or the surrounding area, the experienced bankruptcy attorneys of The Bankruptcy Group may be able to assist. Debt relief could be available through Chapter 7 bankruptcy, or alternatives such as Chapter 13 bankruptcy. For a free legal consultation about filing for bankruptcy in Rancho Cordova, call the law offices of The Bankruptcy Group immediately at (800) 920-5351. Your information will be kept confidential.
How Does Chapter 7 Bankruptcy Work?
Chapter 7 is the most common type, or “chapter,” of bankruptcy in California. When you file your bankruptcy petition in the U.S. Bankruptcy Court for the Eastern District of California, you will likely be filing for Chapter 7.
Though somewhat less common, Chapter 13 is another widely used bankruptcy option. In exceedingly rare cases, an individual will use Chapter 11, though this arrangement is more commonly seen among businesses that file for bankruptcy.
If our bankruptcy lawyers determine that we can assist with your case, we will help you decide which chapter of bankruptcy is best for your situation. Below, you will find answers to some frequently asked questions about filing Chapter 7 bankruptcy in Rancho Cordova.
What else might I hear Chapter 7 referred to as? Chapter 7 is alternately known as “liquidation” bankruptcy, “straight” bankruptcy, or “ordinary” bankruptcy.
Who can file Chapter 7 bankruptcy in California? Chapter 7 may be used by individual debtors, spouses who wish to file bankruptcy jointly, and a variety of business entities, including partnerships, limited liability companies (LLCs), S corporations, and C corporations. There are residency requirements and debt thresholds for various chapters of bankruptcy. Chapter 7 is broadly intended for debtors with limited assets and income.
What happens when you file Chapter 7? A neutral trustee will be assigned to your case soon after you file your petition for bankruptcy. The trustee has the authority to sell some of your property, then distribute the proceeds to certain creditors. However, you may be able to protect most or even all of your property. If you follow the bankruptcy rules properly, the court should discharge your case. This will release you from further responsibility for your dischargeable debts, effectively erasing such debts.
What debts are dischargeable in Chapter 7? If a debt is “dischargeable,” it means the debt can be erased. Dischargeable debts in Chapter 7 bankruptcy include credit card debts, business loan debts, medical debts, personal loan debts, debts from old utility bills, and more.
How long does the Chapter 7 process take? Chapter 7 is the fastest type of bankruptcy. Chapter 7 cases normally take anywhere from approximately three to six months for the debtor.
How much does it cost to file Chapter 7? The Chapter 7 filing fee in the U.S. Bankruptcy Court for the Eastern District of California is $335 as of August 2017.
Chapter 7 vs. 13 in California
Chapter 7 has a statistical edge over Chapter 13, but both chapters of bankruptcy are common. According to recent case statistics provided directly by the bankruptcy court, over 6,300 Chapter 7 cases were filed in the Sacramento Division during 2016, compared to about 2,150 Chapter 13 cases. By comparison, only 34 Chapter 11 cases were filed.
Though you will likely file Chapter 7, it is also possible that Chapter 13 could be the superior strategy based on your income, assets, debts, and objectives. Our attorneys can help you make this determination after learning more about your financial circumstances, and the goals you hope to achieve by filing for bankruptcy in Rancho Cordova.
Chapter 7 is quicker, simpler, and generally easier for debtors to complete successfully, though that does not always necessarily make it the best approach. While Chapter 13 can take up to five years to finish, Chapter 7 takes only a matter of months. Additionally, Chapter 7 has no requirement for the debtor to make monthly payments to the trustee, which is a key feature of Chapter 13 bankruptcy.
The drawback of Chapter 7 is that there is potential for liquidation of assets, including real property. However, our Rancho Cordova Chapter 7 lawyers are adept in handling these cases strategically, and look for ways to maximize the amount of property our clients keep. You may even be able to save all of your property, depending on its value and which system of California bankruptcy exemptions you choose. Our attorneys can help you make a well-thought-out decision about the best system of exemptions to protect your property while gaining freedom from debt.
Rancho Cordova Chapter 7 Bankruptcy Lawyer Offering Free Consultations
Bankruptcy has short-term and long-term effects on all aspects of your finances, including taxes, insurance, alimony, child support, mortgages, loans, and business decisions. Make sure you have guidance you can count on from a law firm you can trust.
The Bankruptcy Group provides Chapter 7 legal services for individual debtors and business debtors in Rancho Cordova, including Anatolia, Anatolia Village, Mills Acres, Natoma Meadows, Raven Oaks, and Tiffany West. For help with questions about Chapter 7 bankruptcy in Rancho Cordova or other cities in Sacramento County, contact our law offices at (800) 920-5351 for a free legal consultation.