Skip to main content

Is Now the Right Time for Filing Bankruptcy in Sacramento – Choose the Right Legal Help

If you cannot keep up with minimum payments, bankruptcy can provide relief by reducing or eliminating eligible debts, such as credit card balances, medical bills, or personal loans. People consider bankruptcy when their debt becomes unmanageable, and they are at risk of losing their home or other essential property despite negotiations with creditors or due to judgment from creditors. Filing bankruptcy in Sacramento, California initiates an "automatic stay," which temporarily halts actions by creditors, such as foreclosure, repossession, eviction, or utility shut-offs.   

Consulting a bankruptcy lawyer is highly recommended when considering or filing bankruptcy in Sacramento due to the complexity of the process and the significant consequences involved. A specialist bankruptcy lawyer such as the ones available with Recovery Law Group can analyze your financial situation and recommend the most suitable type of bankruptcy. Chapter 7 bankruptcy will discharge your debts quickly. However, to qualify for Chapter 7, you will have to first pass a Means Test, the details of which will be provided to you by the lawyer filing bankruptcy in Sacramento on your behalf.   

On the other hand, Chapter 13 bankruptcy will reorganize your debts, and you will be allowed to repay all your outstanding debts over a period of three to five years. Any outstanding after the completion of bankruptcy will be eliminated. There are other specialized types of bankruptcies also under the US Bankruptcy Code. Chapter 11 is for businesses, while Chapter 12 is for farmers and fishermen.  There are bankruptcy exemptions that will allow you to keep certain property like home, car, and personal items. However, understanding federal vs. state exemptions can be complex, and you will be provided with accurate information about these exemptions by your lawyer filing bankruptcy in Sacramento.   

Some of the common exemptions under Chapter 7 bankruptcy are:  

·         Homestead exemption of $27,900 for equity in your primary residence  

·         Motor vehicle of $4,450 in equity value  

·         Personal property of up to $14,875   

·         $2,800 for tools of the trade  

There are some state-specific exemptions also. Like, California offers flexible exemptions to protect cash or other property. However, in Chapter 13 bankruptcy, exemptions are used differently than in Chapter 7. Instead of protecting assets from being sold, exemptions help determine how much you must repay unsecured creditors in your repayment plan. You keep all your assets during Chapter 13, but you must propose a repayment plan for your debts. Your repayment plan must pay at least as much to unsecured creditors as they would receive in a Chapter 7 liquidation. Some debts, like student loans, taxes, child support, and alimony, cannot be eliminated.  

After filing bankruptcy in Sacramento, your creditors are legally required to direct all communications through your attorney, giving you peace of mind. You will be required to undergo a court-approved debtor education course after filing bankruptcy in Sacramento, and also attend a meeting, called 341 Meeting, with the creditors before filing for bankruptcy. Recovery Law Group’s specialist bankruptcy lawyer can help you weigh the long-term benefits of bankruptcy against its costs and impacts, ensuring it's the best financial decision for your situation. After your case is resolved, the lawyer can also advise you on rebuilding credit, managing finances, and avoiding future financial pitfalls. 

 

 

Labels:

Comments

Post a Comment

Popular posts from this blog

Bankruptcy consultation Austin TX to provide relief to individuals from overwhelming debt burden

  Many people facing the challenge of managing their overwhelming debts resort to bankruptcy to get relief from debts that they cannot repay. This legal process is designed not only to give relief to the creditors but also ensure that creditors receive some payment based on the borrower’s financial situation and assets. One of the key benefits of bankruptcy consultation Austin TX with an experienced law firm, such as Recovery Law Group, is that your attorney will help halt all creditor actions against you, including foreclosure, repossession, wage garnishments, and harassment calls .         Majority of bankruptcy cases filed in Austin TX are under Chapter 7 of the US Bankruptcy Code. It allows for the complete elimination of covered debt, and is available to those whose monthly income is below the state’s median income for their household size. If your income is above the state’s median income, you may still qualify for Chapter 7 during your bankruptcy c...
Post a Comment
Read more

Chapter 7 bankruptcy Las Vegas to eliminate your debts and give you a fresh restart for financial stability

Chapter 7 bankruptcy focuses on liquidating your non-exempt assets, and your many types of unsecured debts are eliminated. You may be suggested to file for Chapter 7 bankruptcy by your lawyer based on certain signs, like your unsecured debts are more than half of your annual income, or it would take you five years or more to pay your debts even if you took extreme measures. Bankruptcy will set you financially free as debts get discharged, and you also get peace of mind. When the stress and anguish go away, you will be in a condition to make better decisions, and handle your financial life in a better way.         When the process is complete, a vast majority of debts will be eliminated, and you will have a cleaner slate to start afresh. To qualify for Chapter 7 bankruptcy Las Vegas in Nevada, you will have to pass a Means Test, that aims to prevent low earners from getting the benefits of Chapter 7 bankruptcy protection. To qualify for the test, your averag...
Post a Comment
Read more

All that you need to about bankruptcy and expectations in bankruptcy consultation

You may feel the need to file for bankruptcy for many reasons, like your debts have become overwhelming and unmanageable, or you experienced job loss or reduction in income, that may make it hard to keep up with your payments and other regular financial commitments. Though filing of bankruptcy could be a difficult decision, especially when it has a stigma attached to it, nevertheless, it’s a legal option that gives you a chance to put your business together and have a financial restart. However, not everyone is aware of which type of bankruptcy they qualify for, and how to proceed with it. It’s here that the expertise of specialist bankruptcy lawyers, such as Recovery Law Group, can make all the difference to your financial future. When you consult for bankruptcy, you will come to know that all individual bankruptcy cases are handled by federal courts in the USA. Most individual bankruptcies are filed either under Chapter 7, or Chapter 13 of the US Bankruptcy Code.   You may ...
Post a Comment
Read more