Sacramento Chapter 7 Bankruptcy Lawyer
If you or a loved one are considering filing for Chapter 7 bankruptcy in Sacramento, let the skilled California lawyers of The Bankruptcy Group help to make the process smooth and efficient for you. Backed by years of experience, our friendly team of reliable and knowledgeable bankruptcy attorneys can assess your situation to create a viable strategy for mending your finances effectively.
Your initial consultation is completely free of charge, so there’s no risk in contacting us for your confidential bankruptcy consultation. Call The Bankruptcy Group at (800) 920-5351 to talk about how Chapter 7 bankruptcy may be able to help you manage your finances, and get off to a fresh start for 2017. Make this the year you say goodbye to stress and regain control of your future.
What Happens When You File for Chapter 7 Bankruptcy in California?
You have probably heard about companies filing for Chapter 11 bankruptcy. Chapter 7 is simply another form of bankruptcy, generally used by individual filers who are seeking relief from personal debt, such as debt arising from medical bills. Statistics shift from year to year, but Chapter 7 is generally the most common type of bankruptcy, and is utilized by thousands of hard-working Californians like yourself on an annual basis. Not only are Chapter 7 bankruptcy cases relatively quick and simple, but they can also help the filer eliminate unmanageable debts while simultaneously providing protection from creditors.
Like other types of bankruptcy, Chapter 7 is named for its chapter of the U.S. Bankruptcy Code. Chapter 7 is also described as “straight” or “liquidation” bankruptcy due to the way the process unfolds in comparison to Chapter 13.
In Chapter 13, sometimes called “reorganization,” the filer is bound to a long-term financial plan, typically lasting three to five years, and requires him or her to make repayments toward creditors. Chapter 7 is much faster, usually concluding in as little as four to six months, because there is no reorganization or repayment plan to deal with.
A court-appointed official called a trustee may liquidate and sell some of your property in a Chapter 7 case, but protections known as “exemptions” will allow to keep part of your property. California uses two systems of exemptions called “System 1” and “System 2.” Our liquidation bankruptcy lawyers will sit down with you to assess your finances so that you select the most appropriate and beneficial system of exemptions.
What Debts Can Be Eliminated in a Chapter 7 (Liquidation) Case?
There are two potential outcomes to a Chapter 7 bankruptcy case: dismissal, a negative outcome resulting from problems such as fraud or paperwork errors, and discharge, a positive outcome in which “dischargeable” debts can be eliminated. Dischargeable debts in a California Chapter 7 bankruptcy case – debts from which the filer can be released if the case is successful – include but are not limited to the following:
- Business debts
- Certain types of car accident claims
- Certain types of court judgments
- Credit card debt
- Medical debt
- Past-due rent
- Past-due utility bills
- Personal loans, such as loans from friends or family members
- Revolving charge accounts
- Social security overpayments
Before you decide to file, it’s important for you to understand that not all debts can be eliminated through bankruptcy. Though there are occasional exceptions, debts that typically cannot be wiped out, known as “non-dischargeable” debts, include:
- Certain tax-related debts
- Child support
- Criminal restitution
- Most student loans
If your sources of debt are primarily non-dischargeable, filing for bankruptcy may be of limited help. However, if you are seeking relief from credit card debt, medical debt, or other forms of dischargeable debt, Chapter 7 bankruptcy can provide tremendous and immediate relief.
There are also some additional benefits to filing for Chapter 7 bankruptcy in Sacramento or other parts of California. For example, when you file for bankruptcy, you will become automatically protected by a court order aptly named the “automatic stay.” This temporarily freezes collection actions such as repossession and foreclosure. Moreover, by eliminating many of your existing debts, you can emerge from your bankruptcy in a much better position to start building good credit for your future.
Contact Our Sacramento Chapter 7 Bankruptcy Attorneys for a Free Consultation
Chapter 7 bankruptcy doesn’t have to be a scary or stressful experience. In fact, when handled with compassion and efficiency, bankruptcy can be a very positive turning point in your life, setting the stage for a stronger financial future.
When you are represented by the Sacramento bankruptcy attorneys of The Bankruptcy Group, you can expect prompt responses, friendly support, and effective representation throughout every step of your case. We will work closely with you to make sure you understand your rights and responsibilities, and we will be there to answer all of your questions as the process unfolds.
Don’t wait to get started making 2017 the year of financial stability. To learn more about the benefits and advantages of filing for Chapter 7 bankruptcy, call the law offices of The Bankruptcy Group at (800) 920-5351 for a free and completely confidential consultation.