No one wants to file personal bankruptcy, and it should be one of the last options for regaining financial footing, but last year alone thousands of Americans who suffered through an unexpected medical crisis, divorce, death or high credit card bills filed for bankruptcy in California and have found financial relief.
If you are considering filing bankruptcy in Sacramento it is important to contact a Sacramento bankruptcy lawyer for more information about whether you qualify for Chapter 7 or Chapter 13 bankruptcy. Filing Chapter 7 bankruptcy can discharge certain types of debt. Filing Chapter 13 bankruptcy may allow for more favorable repayment terms. When is the right to file bankruptcy? There may not be a right answer to that question, but Sacramento bankruptcy attorneys can provide information about bankruptcy laws and help you identify if bankruptcy is right for you.
Filing Chapter 7 Bankruptcy in Sacramento
Filing Chapter 7 bankruptcy in Sacramento, California, can allow debtor’s to regain their financial footing by selling their non-exempt assets and using the proceeds from the sale to repay their creditors. Chapter 7 bankruptcy can be an inexpensive, simple way to for Sacramento residents to get a fresh start.
Filing Chapter 7 bankruptcy in Sacramento begins by contacting a Sacramento bankruptcy lawyer who will file the bankruptcy petition is a Sacramento bankruptcy court. Information about the debtor’s assets, property, debts, and creditors will need to be provided. A bankruptcy trustee is assigned to the bankruptcy case to review the bankruptcy petition and sell the Sacramento debtor’s assets to pay their creditors. Most Chapter 7 bankruptcies can be completed within 4 to 6 months.
Filing Chapter 13 Bankruptcy in Sacramento
Filing Chapter 13 bankruptcy in Sacramento will not be as easy as filing Chapter 7 bankruptcy, but it will allow the debtor to reschedule their debt payments with a bankruptcy repayment plan. The bankruptcy plan generally will allow more favorable repayment terms and can be completed within 3 to 5 years.
One benefit of filing Chapter 13 bankruptcy in Sacramento is that a debtor’s assets do not have to be liquidated. Filing Chapter 13 bankruptcy may allow a debtor to stop home foreclosure, property repossessions and wage garnishments. Not everyone can file Chapter 13 bankruptcy. Individual’s will need a steady source of income to qualify and can not have unsecured debt which is higher than $269,250 or secured debt higher than $807,705.
Personal Debts Not Eliminated By Filing Personal Bankruptcy
Filing bankruptcy in Sacramento does not eliminate certain types of personal debt. Non-exempt debt is determined by federal bankruptcy laws and is the same for all states. The following debts will not be discharged by filing Chapter 7 or Chapter 13 bankruptcy in Sacramento:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Sacramento
- Fines owed to federal or California government agencies
- Debts generated from fraudulent activity
- Recent cash advances of $825 within 70 days of filing personal bankruptcy