If you are thinking about declaring bankruptcy in the State of California and the city or county of Sacramento then it will be imperative that you retain the services of a sacramento bankruptcy attorney. A sacramento bankruptcy attorney represents clients who have fallen into overwhelming debt to the point where they are not capable of paying back their creditors.
Bankruptcy is essentially a way that the federal and state governments allow individuals and businesses to get a “second chance” in having a financial existence. A Sacramento Bankruptcy Attorney will should be retained in the jurisdiction where one has his, or her, residence, place of business, or place of principal assets.
When an bankruptcy is declared, and approved by the courts, it will shield certain assets that an individual possesses from his, or her, creditors. This can be a very beneficial situation when someone is in exhoribitant debt and is looking at the possibility of repossession of property or the foreclosure of real property.
There are series of many different types of bankruptcy that can be declared. These ar called chapters. Depending on the chapter of bankruptcy that you and your Sacramento Bankruptcy attorney decide to proceed with, you will be afforded different rights. It is important for you and your Sacramento bankruptcy attorney to discuss all your financial information including assets, liabilities, and other financial data to properly decide an appropriate course of action. Bankruptcy in the United States is litigated in the U.S. Bankruptcy Court of the specific jurisdiction that you, or your property, is situated in.
The most common chapters of bankruptcy that will require the services of a Sacramento bankruptcy attorney are filing for Chapter 7 and Chapter 13 proceedings. These types of proceedings are taken when an individual has ability to repay creditors and is looking at the loss of his, or her, property due to mounting debt. The Sacramento Bankruptcy Attorney will begin the process of bankruptcy by filing with the United States Bankruptcy Court for the Eastern District of California. At that point the Sacramento Bankruptcy Attorney will gather your financial data including assets, liabilities, income, etc. and other financial information for the court to approve. Upon approval from the court all creditors will be stayed from trying to collect money owed. In bankruptcy proceedings it is necessary to publish a declaration of bankruptcy to put creditors, and future creditors on notice of your impending status.
The other type of bankruptcy that is common for individuals in high risk of defaulting on financial obligations is filing for Chapter 13. Chapter 13, also known as “wage earner plan.” It is a type of bankruptcy for individuals who want to repa their debts but do to certain situations they are not able to currently do so. This can often be the route that individuals take when they suddenly become unemployed or underemployed. To be eligible for filing for a chapter 13 bankruptcy an individual must have less than $100,000 in unsecured debt and less than $350,000 in secured debt.
Even though declaring bankruptcy will help shield an individual from their creditors there are some types of assets that are not protected through bankruptcy. These include: alimony and child support; both federal and state taxes; student loans; judgments for intentional torts; and others. You should discuss all possible non-dischargeable debts that may be applicable to you,under both federal and California law. You should discuss with you Sacramento Bankruptcy attorney all these matters to come to a decision on how to approach each possible exception to bankruptcy.
There are a number of situations where your assets, even though outside the exceptions listed above, will still be reachable by creditors. This usually results from some form of dishonesty or malfeasance on the part of the bankruptcy applicant. These situations nclude when the debtor fails to adequately explain loss of assets; the debtor perjures himself; an the debtor fraudulently transfers, destroys, or conceals assets from the court and the creditor. Your Sacramento Bankruptcy Attorney should be able to help you rebut any claims of wrongdoing that may lead you to lose your rights to discharge a debt because of any of these accusations.
Both the federal government and the state of California allow exemptions that permit an individual, declaring bankruptcy to keep certain property even if the amount that is owed to secured, and unsecured, creditors exceeds their worth. The federal government has certain exemptions that are shielded from creditors and, in addition, the State of California also allows exemptions for certain assets. These include, but are not limited to.
■ Real Property, also known as the homestead allowance, of $50,000
$75 if married; $125 if over 65 years of age
■ personal property
● social security benefits up to $2000
● building materials up to $2000
● burial plots
● jewelry up to $5000
● motor vehicle up to $1900
● judgments from personal injury or wrongful death actions
■ Insurance
■ Public benefits
■ pensions
■ tools of the trade up to $5000
■ wages of no more than 75%
One of the first things you should do when meeting with your Sacramento Bankruptcy attorney is to decide whether you even need to file for bankruptcy. A sacramento bankruptcy attorney, in addition to helping you with the specifics of filing for bankruptcy, should also be able to do other things such as negotiate with lenders, work out payment plans, and re-financing. Declaring bankruptcy may save you from your creditors but filing for bankruptcy will be a black mark on your credit score and prevent you from certain actions in the future.
When you are looking for Sacramento Bankruptcy attorneys you can call the California Bar Association to help in your search for a Sacramento Bankruptcy Attorney. You can also take advantage of the laws.com referral service. By clicking on the link at the top of this page you can locate Sacramento Bankruptcy Attorneys close to you that meet your specific needs. Laws.com will request that you input your name, contact information and give a description of your specific problem. A representative from laws.com will review your request and contact you with information about Sacramento Bankruptcy Attorneys that will be able to help you decide what type of bankruptcy you should file, if at all, and help you protect as much of your assets as possible.
