Affordable bankruptcy in Sacramento to help you rebuild your finances

When debts are so high that it’s impossible to pay them off within a reasonable timeframe, affordable bankruptcy can provide much-needed relief to individuals in financial distress. If you are dealing with multiple secured and unsecured debts, priority debts, or other debts due to natural disasters, business failure, or job loss, filing for affordable bankruptcy Sacramento in California through specialist law firms, like Recovery Law Group, can help protect your home and some exempt assets, and also save you from the creditors’ collection activities. Affordable bankruptcy provides low-cost legal assistance to individuals in financial distress, and for whom bankruptcy is the only option left to get rid of their debts and creditors’ harassments.  

  

Many individuals hesitate to file for bankruptcy due to the perceived costs of hiring an attorney. However, Recovery Law Group provides affordable bankruptcy Sacramento to deserving individuals at reduced rates, or on a sliding scale based on income. This includes free initial consultation, allowing you to explore various options, including Chapter 7 and Chapter 13 bankruptcies for individual debtors, and Chapter 11 bankruptcy for businesses, under the US Bankruptcy Code.   

  

Chapter 7 bankruptcy is an option for individuals for whom discharging their debt obligations has become impossible with their current means of earning. Affordable bankruptcy Sacramento under Chapter 7 will eliminate most of your debts, including:  

  

·         Medical bills  

·         Utility bills  

·         Secured loans, like mortgages or car loans  

·         Personal and payday loans, and   

·         Civil court judgments  

  

However, certain obligations, such as child support, alimony, student loans, and tax liens cannot be discharged under Chapter 7. Additionally, in order to successfully file for affordable bankruptcy in Sacramento under Chapter 7, you need to pass the Means Test. This test is performed to ensure that only deserving individuals are able to benefit from the provisions of Chapter 7 bankruptcy. To pass the Means Test, your average monthly income for the past six months should be less than the median income of the size of your family in the state of California.   

  

Chapter 13 bankruptcy for those with a regular income   

Another option for affordable bankruptcy Sacramento is Chapter 13. Under this bankruptcy option, you will be given a time period of three to five years to discharge your outstanding debts. For this, the federal bankruptcy court will appoint a trustee, who will work out a repayment plan wherein you will be allowed to repay your outstanding debt over three to five years through affordable monthly installments. The payment amount is based on your disposable income (income minus allowable expenses) and the type of debts you owe. In case your financial situation changes significantly during the repayment plan, such as job loss, you will be allowed to modify the repayment plan under the court’s approval.   

  

To qualify for affordable bankruptcy Sacramento under Chapter 13, your unsecured debts should be less than $465,275, and secured debts should be less than $1,395,875. Moreover, you will have to complete a credit counseling course from an approved agency within 180 days before filing. After completion of the repayment plan, any remaining eligible unsecured debts (like credit card debt or medical bills) may be discharged, which means you will not be legally obliged to repay them.