Sacramento Bankruptcy Attorneys
For Californians considering bankruptcy, there are various options that can adapt to your situation. The two most common options individuals look at for bankruptcy are Chapter 13 and Chapter 7. Chapter 13 bankruptcy offers debtors an opportunity to reorganize their debts and reduce debt payments altogether. Chapter 7 bankruptcy allows a debtor to discharge several forms of debt within a short timeframe. Each type of bankruptcy has its benefits for a Sacramento resident who is looking to take control of their debt.
If you or a family member is considering filing for bankruptcy, you should speak with an experienced attorney first to discuss your options. The Sacramento bankruptcy attorneys at The Bankruptcy Group can help you decide which type of bankruptcy will suit your unique situation. Our attorneys have years of experience dealing with various types of bankruptcy filings and are prepared to guide you through the process of filing for Chapter 7 or Chapter 13. To schedule a free consultation with one of our diligent attorneys, call us at (800) 920-5351 or contact us online.
Filing Chapter 7 Bankruptcy in Sacramento
One of the main reasons to file for bankruptcy is to discharge a portion of the debt that a person cannot afford to pay. An individual has no liability for discharged debts in bankruptcy, which allows them to have a fresh start.
Chapter 7 bankruptcy, sometimes referred to as “liquidation,” generally allows a person to keep most of their assets by using bankruptcy exemptions. Chapter 7 bankruptcy occurs when a trustee gathers and liquidates the debtor’s nonexempt assets and uses the money from the sale of those assets to repay the debtor’s creditors.
Chapter 7 is not just for individual people. A corporation or limited liability company (LLC) can also file for Chapter 7 bankruptcy in Sacramento. However, there are different rules for individuals and businesses under Chapter 7.
It is important to note that while most Chapter 7 cases result in a discharge of debts, a discharge is not guaranteed. In order to receive a discharge, the debtor must follow bankruptcy laws and obey the court’s rules carefully throughout every step of the Chapter 7 process.
In many cases, Chapter 7 bankruptcy is resolved in as little as four to six months. Working with a Chapter 7 lawyer will help to keep the filing process as smooth and efficient as possible, enabling you to complete your case without unnecessary delays.
File for Chapter 13 Bankruptcy in Sacramento
Chapter 13 bankruptcy gives a debtor a few advantages over the asset liquidation associated with Chapter 7 bankruptcy. One of the biggest advantages that Chapter 13 offers is the opportunity for a debtor to save their home from foreclosure. Filing for Chapter 13 can halt foreclosure proceedings and allow a debtor to cure delinquent mortgage payments over time.
Chapter 13 bankruptcy allows a debtor to reorganize their debt and create a repayment plan to repay various creditors. The repayment plan consolidates all of a person’s debt into a single monthly payment that is paid to a Chapter 13 trustee, who then distributes that payment to creditors. Additionally, the repayment plan can lower the amount of money a debtor owes a creditor.
Chapter 13 allows a person to pay off their debt over the course of a three-year or five-year plan. If the debtor’s income is less than the median, he or she will generally be permitted to use a three-year plan. If the debtor’s income is above the median, he or she will likely be required to enter a five-year plan.
What Debts Are Dischargeable in Bankruptcy?
Both Chapter 7 and Chapter 13 bankruptcy have different types of debt that can be discharged. Under Chapter 13 bankruptcy, a debtor can discharge all the debts that became a part of their repayment plan. Once a Chapter 13 repayment plan is successfully completed, a debtor is relieved of their debt obligations to creditors who were included in the plan.
Chapter 7 bankruptcy allows for several different types of debt discharge, such as:
- Medical bills
- Utility bills
- Personal loans
- Government benefit overpayments
- Credit card bills
Certain secured debts may be discharged under Chapter 7 if you surrender the property to the creditor. However, there are also some debts that cannot be discharged in Chapter 7 or Chapter 13 bankruptcy, like:
- Alimony or child support
- Student loans (in most cases)
- Most tax debts
- Criminal restitution and other court fines and penalties
Sacramento Bankruptcy Lawyers for Chapter 7 and 13
To receive more information regarding Chapter 7 or Chapter 13 bankruptcy, or other types of bankruptcy, you should discuss your questions with the knowledgeable bankruptcy lawyers of The Bankruptcy Group. Serving the Sacramento region, we are available to aid you in all steps of your bankruptcy filing. To schedule a free consultation, call us at (800) 920-5351, or contact us online today.