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Bankruptcy Law

The crushing burden of mounting debt will lead almost anyone to his or her breaking point. Perhaps one of the best analogy to describe the apparent hopelessness of crushing debt is an individual who is bailing water out of a sinking boat, but no matter how hard or fast he or she works the boat continues to sink. High interest rates and significant debt can result in a similar feeling of drowning in the financial context. However, the U.S. Bankruptcy Code permits honest, hardworking people to discharge, or wipe-away, debt to give the individual a fresh start. Likewise, Chapter 11 of the bankruptcy code also contains provisions that allow businesses and corporations to reorganize and negotiate their debt burden.

If an individual or business has reached the point where the current financial course is unsustainable, liquid assets have been exhausted, or satisfaction of debts and obligations is impossible, the experienced Sacramento bankruptcy attorneys of The Bankruptcy Group can help. To schedule a confidential bankruptcy consultation contact us at 800-923-5351 or online today.

What is Bankruptcy?

Bankruptcy is a legal process that helps individuals, businesses, and other entities to manage and resolve their debt. It is a court-supervised process that gives debtors the opportunity to either discharge or reorganize their debt.

How does filing for Bankruptcy work?

First, you must decide whether to file for bankruptcy under Chapter 7, Chapter 11 or Chapter 13 of the United States Bankruptcy Code. Depending on the type of bankruptcy, you must complete and file a petition, attend a hearing, and submit a financial disclosure statement. The court will review your case and determine whether you meet the eligibility requirements for bankruptcy. Once your petition is approved, you can begin the process of reorganizing or discharging your debt.

What are some of the benefits of filing for Bankruptcy?

Filing for bankruptcy can provide immediate relief from creditors, stop wage garnishments, and allow you to keep certain assets. In some cases, debtors may be able to discharge all of their debt and receive a fresh financial start.

What are the consequences of filing for Bankruptcy?

One of the consequences of filing for bankruptcy is that it will remain on your credit report for up to 10 years. Additionally, some types of debt, such as student loan debt, may not be eligible for discharge.

Potential additional results of bankruptcy are:

  • Difficulties obtaining credit in the future.

  • The loss of certain assets, such as your home and car.

  • You may have to pay back taxes, fines, and other debts that are not covered by bankruptcy.

Who qualifies for Bankruptcy?

Generally, any individual or business can file for bankruptcy; however, there are certain eligibility requirements that must be met. To qualify for Chapter 7 bankruptcy, the debtor must pass a means test and demonstrate that he or she does not have enough income or assets to pay back their debts.

What is the difference between a bankruptcy attorney and a bankruptcy trustee?

A bankruptcy attorney is an attorney who specializes in filing bankruptcy cases and provides legal advice and assistance throughout the process. A bankruptcy trustee is a court-appointed individual who is responsible for managing the bankruptcy case and distributing funds to creditors.

How much does it cost to file for bankruptcy?

The cost of filing for bankruptcy varies depending on the type of bankruptcy you file and the complexity of the case. Generally, filing for bankruptcy costs a few hundred dollars and can go up to a few thousand. If you’re exploring bankruptcy options, call us today to schedule an individualized personal consultation.

How do I know if Bankruptcy is the right choice for me?

If you are considering filing for bankruptcy, it is important to speak with an experienced Sacramento bankruptcy attorney to discuss your options and make an informed decision. The experienced attorneys at The Bankruptcy Group can evaluate your financial situation and provide guidance on the best way to move forward. If you’re considering Bankruptcy, or would like to evaluate your options, We’re here to help – Call us today at 888-710-4334.

What Are The Most Common Reasons For Considering Filing Bankruptcy?

For individuals, the most common reasons for filing bankruptcy are job loss, a reduction in income, the foreclosure crisis, medical bills, divorce, or a small business failure. Once a financial crisis strikes, many people wind up taking on additional debt or maxing out their credit cards and credit lines just to weather the storm. Many of our clients, who have experienced an extended period of unemployment or income reduction, have also spent their savings and in some cases gone through their retirement savings just to stay afloat.

Businesses may face bankruptcy for an array of reasons. An unforseen downturn in the market or international currency fluctuations can constrain cash flow and significantly reduce revenues. Furthermore, mistakes regarding corporate tax, employment taxes, or payroll taxes can lead to significant liabilities. In some cases, structural changes may render a business plan or niche obsolete.

At The Bankruptcy Group, we are consumer and business advocates. Our goals are to educate homeowners, borrowers and commercial ventures regarding protections that are in place to safeguard their homes and assets and that allow them to restructure or eliminate their debt and get a fresh start. We understand that filing bankruptcy is a major decision. Whom you hire to handle your Chapter 7 or Chapter 13 consumer bankruptcy or Chapter 11 business reorganization is extremely important.

The Basics of Consumer & Business Bankruptcy

There are three main types of bankruptcy. The party seeking to file bankruptcy should base his or her decision on the type of bankruptcy he, she, or the entity should file based on financial circumstances, types of debt held and future goals. The types of bankruptcy available are named after the Chapter of the U.S. Bankruptcy Code that the type of bankruptcy is defined under. The types of bankruptcy are:

  • Chapter 7 – Chapter 7 is sometimes known as liquidation because it, essentially, allows an individual or business entity to wipe away their debt because a reorganization is not possible or highly unlikely to be successful. In Chapter 7 bankruptcy, a trustee is appointed by the court to take control over the assets of the bankrupt party. The trustee then distributes the proceeds from the assets to creditors according to laws governing priority. Chapter 7 is often most useful for individuals and entities with few assets to protect.

  • Chapter 11 – Chapter 11 is mainly used by businesses to reorganize their debt, but in limited circumstances, it can also be used by individuals with particularly complex finances or due to means testing out of Chapter 13. Individuals or entities who file for Chapter 11 must submit a debt reorganization plan.

  • Chapter 13 – Under Chapter 13 bankruptcy the debtor must submit a payment plan where he or she pays all debts or negotiated debts with creditors over a three to five year plan. For homeowners, Chapter 13 contains a number of provisions that can protect a family home.

Chapter 12 Bankruptcy also exists, but usage of this Chapter is limited to commercial fishermen and family farmers.

Rely On Our Experienced Sacramento Bankruptcy Attorneys

The experienced bankruptcy lawyers of The Bankruptcy Group, are strategic and diligent in their approach to financial problems, debt reduction, and bankruptcy of consumers and businesses. We can discuss your potential options and help you make an informed decision that will allow to secure the fresh start you need. To schedule a confidential consultation call us at 800-923-5351. We have conveniently located law offices in Roseville and Folsom, California.

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2408 Professional Dr
Suite 100
Roseville, CA 95661