Filing Bankruptcy In The Sacramento Area

At the Law Offices Of Russ Wyatt, we assist individuals in the Sacramento and throughout Valley understand their bankruptcy options. The process of filing bankruptcy will differ depending on the type of bankruptcy that is most appropriate for your particular situation. For most people, there are two options: Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Typical Chapter 7 Bankruptcy Proceedings

Barring complications, a Chapter 7 personal bankruptcy takes approximately four and a half months to complete. We file the bankruptcy petition with the Bankruptcy Court on behalf of the debtor. Filing the petition initiates the “automatic stay” that stops further collection efforts by creditors.

The trustee will meet with you approximately five weeks after your case is filed. This meeting, called the “meeting of creditors pursuant to 11 U.S.C. § 341(a),” is the only formal appearance in your case you will likely have to make.

In approximately 95 percent of the Chapter 7 cases filed around the United States each year, the trustee concludes that the debtor has no assets worthy of liquidation, because most debtors’ assets are either encumbered, leased, exempt under California law or of immaterial value. In the other approximately 5 percent of Chapter 7 filings, the trustee does liquidate some unencumbered nonexempt assets.

Typical Chapter 13 Bankruptcy Proceedings

Chapter 13 bankruptcy is known as an “individual debt adjustment” bankruptcy, in which the debtor proposes a plan to repay creditors at least in part.

You must repay all mortgage arrears for properties you wish to keep, all recent tax obligations, and all delinquent child support and alimony obligations. You must devote all disposable income to the plan for a minimum of 36 months, and you must pay your creditors at least as much as they would have received in a Chapter 7 liquidation proceeding.

If you make all the payments required, you will receive a discharge of debt from the clerk of the Bankruptcy Court. Don’t wait until it is too late.

If you need more information on filing Bankruptcy, we invite you to make an appointment to come to the office in Sacramento, California, but if you cannot, we will help you file bankruptcy by e-mail, phone and mail. For more information on the basics of filing bankruptcy, contact the Law Offices Of  Russ Wyatt at 916-572-9779 to arrange your free initial consultation with Sacramento County bankruptcy law attorney today.