From Our Bankruptcy Attorney in Sacramento CA
Dear New Clients,
Thank you for considering me to be your bankruptcy attorney. I represent consumers and small businesses in Chapter 7 and 13 bankruptcy. As a Sacramento bankruptcy attorney, I help people get rid of debt and restore their financial health. Maybe you lost your job, went through a divorce, required medical treatment, or got caught up in credit card debt. No matter what the cause of your debt, bankruptcy may be an option for restoring your financial health. Bankruptcy is a legal tool for discharging debt. Bankruptcy can give you a fresh start. You can rebuild your credit and use your income to provide for your family. For many, bankruptcy is the responsible choice in tough times. If you are considering bankruptcy or just have questions, call my office at (916) 596-1018 to schedule a free, confidential consultation.
You Get More with Sacramento Law Group
At Sacramento Law Group we want every client to walk out of our office and say “I’m glad I hired them.” To encourage that sentiment our bankruptcy attorney gives you a lot for your flat fee. In addition to preparing your bankruptcy petition and representing you at the meeting of creditors, your flat fee includes enrollment in the two required education courses and more. Coupled with our excellent communication and straightforward advice, we think you will walk out of our office and agree that you are glad you hired Sacramento Law Group.
About Bankruptcy in Sacramento
Filing for bankruptcy is a big step towards financial health. Bankruptcy can eliminate or reduce your existing debts and allow you save money for what matters most; your family. Your savings are important, and bankruptcy can allow you to save once again. Once your debt is reduced or eliminated you can save money for retirement, your children’s education, a home, medical and dental insurance, or whatever matters most to you. A bankruptcy attorney can evaluate your financial situation and determine if bankruptcy is right for you.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is billed as the liquidation bankruptcy because nonexempt assets can be sold by the Trustee with the monetary proceeds given to your creditors, after which your dischargeable debts are discharged. However, despite the “liquidation” nature of Ch. 7, most Ch. 7 cases do not involve the sale of assets. Most Ch. 7 cases are “no asset” cases; after exempt assets are listed, no other assets remain. To give you a better idea of this reality, let’s talk about “exemptions.” Exemptions can be claimed for certain assets in varying amounts which remove those assets from liquidation. Why? Because legislators realized that people need certain things after bankruptcy to restore their lives. People need a modest car, clothes, furnishings, etc. Once your bankruptcy attorney in Sacramento CA reports your assets and lists corresponding exemptions, there may be few assets remaining for the Trustee to liquidate. When this occurs the case is called a “no asset” case; there are no “non exempt” assets remaining for the Trustee to sell in bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy involves a repayment plan in which you pay an amount over 3-5 years from your disposable income. Once you have made these payments over 3-5 years you will receive a discharge of your remaining dischargeable debts. This is a more difficult form of bankruptcy than Ch. 7 since it requires you to live off a fraction of your income over 3-5 years and dedicate the rest of your income to a repayment plan. Many Chapter 13 petitioners fail to fulfill their repayment plan and thereby fail to receive a discharge of their debts. However, Ch. 13 can have some advantages over Ch. 7. For starters, in Ch. 13 you can keep your property. Furthermore, if you have a second mortgage on your home, and the value of your home is less than the amount you owe on the first mortgage, you can “strip off” (discharge) the second mortgage in Ch. 13. In terms of cost, the total cost of chapter 13 is usually higher than chapter 7 fees. However, many attorneys will only require a portion of the total fee be paid before filing, with the remainder of the fee paid in installments throughout the chapter 13 plan. This scheme of deferred attorney fees is a strong advantage of chapter 13.
Yes, bankruptcy can be complicated. There are many factors to take into account before you file for bankruptcy, and you should consult a Bankruptcy Attorney in Sacramento CA before you file.
Learn more about bankruptcy on our bankruptcy website.
Sacramento Law Group
331 J St #200
Sacramento, CA 95814