Consumer Bankruptcy Lawyers in Sacramento, California

Find the right Consumer Bankruptcy attorney in Sacramento, CA

Bankruptcy is a legal procedure that allows an individual or business to have some or all of their debts discharged. It is normally considered as an option of last resort, because while it can stave off financial disaster, it has some considerable long-term consequences warranting careful consideration of the costs and benefits. Bankruptcy is a formation of federal law, and goes through federal courts. Therefore, the process governing bankruptcy in California will be roughly the same as it is everywhere else in the U.S. But individual courts have different rules for what property is exempt, so you should consult a local Sacramento, California before you file.

Chapter 7 Bankruptcy in Sacramento, California

In Sacramento, California, there are 2 common types of commonly-used consumer bankruptcy: Chapter 7 and Chapter 13. Chapter 7 involves liquidation of part of a debtor's assets. It requires that a certain percentage of the debtor's property to be sold to pay off as much debt as possible. The majority of property that most people own, however, is exempt. This normally includes homes, vehicles, retirement accounts, and others. These are not available to creditors.

Once all non-exempt assets are sold, and the money from the sales turned over to the creditors, most remaining debt is absolved. But some forms of debt cannot be discharged through Chapter 7 bankruptcy. These include child support payments, student loans, and criminal fines, among others. If most of your Sacramento, California debts are not dischargeable, you may want to consider options other than bankruptcy.

Chapter 13 Bankruptcy in Sacramento, California

In Sacramento, California, Chapter 13 is very different from Chapter 7. Chapter 13 may or may not be the best choice for you; this depends on the facts of your individual situation. Chapter 13 does not excuse any debt, but it creates a new payment plan that should give the debtor some breathing room. Typically, all of the debts are consolidated into 1 periodic payment. While this may make it take longer to pay off the debt, if the debtor is willing to make a few sacrifices, the plan should be manageable.

Which Type of Consumer Bankruptcy Should I File in Sacramento, California

The answer to this question depends strongly on your particular situation. If you have enough stable income to manage a payment plan, and a lot of non-exempt property that you are unwilling to part with, Chapter 13 may be a good option. If you don't have much stable income, and most of your property is exempt, Chapter 7 might be better.

In any case, it would be a good idea to consult a local bankruptcy lawyer in Sacramento, California. Your lawyer can make an educated judgment as to what your best option is, and advise you accordingly (of course, the choice to file for bankruptcy is ultimately yours).

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Life in Sacramento

Sacramento is the capitol of the State of California, seat of Sacramento County, and still only ranks as the 6th largest city in the state. Cited as one of the most ethnically and racially integrated communities in the United States by Time Magazine, Sacramento plays host to a wide variety of public, private, and religious K-8 schools. California State University Sacramento, University of California Davis, and The Art Institute are just a few of the options residents have for higher education. In addition there are a number of other private, public, vocational, and community colleges in the area. The top employer in Sacramento remains the State of California. The California State Capitol Building was erected in 1874 and is reminiscent of the U.S. Capitol Building. "The Big Four" who included Mark Hopkins (of the Hotels), Charles Crocker (local Mansion/Art Museum and Rail tycoon), Leland Stanford (tycoon, industrialist, the university), and finally Collis P. Huntington (another Transcontinental Railroad tycoon) financed the construction of the Capitol Building out of pocket.

Sacramento has a number of outstanding museums and tourist amenities like the Crocker Art Museum, a local NBA team, a historic Old Town District, and the western terminus of the Pony Express which is Sutter's Fort. the Fort was erected in 1839 and is most famous for its association with the Donner Party and Sutter's Mill where gold was first found. Aside from the historical, Sacramento is host of the major courts in the area including the California State Supreme Court, Sacramento County and City Courts, and other Federal run courts. These buildings are largely located in Downtown Sacramento but serve the entire Central Valley.

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