Bankruptcy Attorney in Sacramento
Facing tough decisions about debt affects people from all walks of life. The reality is that you cannot look at someone and determine if he or she is struggling financially. At Boyd Law, we help individuals make informed choices about bankruptcy. If you are struggling with insurmountable debt, don’t wait to learn about your options. Filing for bankruptcy can help you discharge debt, stop collections actions and harassment, and begin rebuilding your credit and financial security.
Understanding Bankruptcy Chapters
Bankruptcy filings are complex and require detailed financial information from the filer. You should always seek an expert opinion about your circumstances. There are three popular bankruptcy types to help individuals and businesses overcome debt.
Chapter 7 Bankruptcy – Clean Slate Bankruptcy
Chapter 7 bankruptcy allows debtors to liquidate all non-exempt assets. A trustee will take over your affairs, and deal with debt collectors on your behalf. You, the filer, will have access to any exempt assets. There are certain non-dischargeable debts in a Chapter 7 filing, including child support, some taxes, student loans, certain charged expenses, alimony, and any fraudulent debt.
People who file for Chapter 7 bankruptcy tend to have a significant amount of consumer (unsecured) debt and limited assets. During a reaffirmation of debt process, Chapter 7 filers may hold onto secured debt, including a home or a vehicle. To reaffirm debt, you must bring your account into good standing.
Chapter 13 Bankruptcy – Restructuring Bankruptcy
Chapter 13 bankruptcy works slightly differently, and typically works best for individuals who make a higher income. The debtor and his or her attorney will present a repayment plan that usually eliminates a predetermined amount of debt within a period of three to five years. As long as a debtor maintains payments during that time, the courts will agree to discharge the remaining debt. Under a Chapter 13 filing, child support, alimony, and student loans are non-dischargeable.
In order for Chapter 13 to work, a debtor must have a reliable income and the ability to pay creditors at least as much as he or she might have in a Chapter 7 filing. Individuals may use a Chapter 13 filing to avoid home foreclosure, to pay back taxes, or to keep some non-exempt property from being liquidated.
Chapter 11 Bankruptcy
Businesses and some individuals with complex debt and assets may file a Chapter 11 bankruptcy. This involves significant reorganization and provides more flexibility for debt discharge and repayment than a Chapter 13 filing. When completed with help from a skilled attorney, this type of bankruptcy can help business owners stay in business. Proper debt reorganization can also help individuals and businesses reach their financial success goals.
Finding Bankruptcy Attorneys in Sacramento
Start looking for a qualified attorney the moment you think bankruptcy might improve your situation. Your bankruptcy attorney in Sacramento will help you determine which filing is appropriate for you and help you develop a strategy for financial success after filing. For instance, many types of property are exempt from bankruptcy proceedings. Your attorney can help you prepare an exemption petition to reduce the total amount of asset loss during the proceedings.
Your attorney will play a valuable role in ensuring that the court accepts your bankruptcy filing. If the court or a creditor has any suspicion about your documentation or your situation, it could jeopardize your ability to discharge any debt.
At Boyd Law, we have experience handling both straightforward and complex bankruptcy cases. During an initial consultation, we can help you make an informed decision about if and when to file for bankruptcy. Allow us to help you discharge debt, restructure your finances, and meet your financial goals in the future. Contact our bankruptcy attorneys in Sacramento today for a free consultation.