Chapter 7 Bankruptcy - Sacramento
BENEFITS OF FILING FOR CHAPTER 7:
- ELIMATES CREDIT CARD DEBT
- MEDICAL BILLS
- STOP FORECLOSURE
- STOP CREDITOR COLLECTIONS
- STOP WAGE GARNISHMENT
- STOP CREDITOR HARRASSMENT
- ELIMINATE SOME TYPES OF TAX DEBT
- TERMINATE OR MODIFY LEASE AGREEMENTS
- STOP LAWSUITS
- PREVENT REPOSSESSIONS
Chapter 7 Bankruptcy (Liquidation)
In a chapter 7 bankruptcy is the quickest and simplest form of bankruptcy. Sometimes called a liquidation, a chapter 7 bankruptcy removes your personal liability for many kinds of debt. A trustee is assigned to your case, and will administer the bankruptcy estate for the benefit of creditors. However, many debtors are allowed to keep a large percentage of their personal possessions such as house, cars, tools of the trade, household goods, and many other personal items.
The moment your bankruptcy is filed Federal Law mandates that your creditors immediately cease ALL communications and collection activities regarding your debts.
Eliminate your debt while keeping your home, your car, and personal belongings!
Sacramento Chapter 7 bankruptcy is a process provided for under United States federal bankruptcy law by which you are entitled to a fresh start.
Sacramento Chapter 7 bankruptcy may eliminate most kinds of unsecured debt. Some examples of unsecured debts Sacramento Chapter 7 may eliminate are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.
In addition to getting rid of your debt, Chapter 7 in Sacramento allows you to typically keep all of your property. As long as your car and mortgage payments are current, and there is no significant equity in your property, we should have no problem making the arrangements for you to reaffirm the debt. Keep your home, keep your car, keep your personal belongings, but eliminate your debt; that is our goal with Sacramento Chapter 7. We may be able to use Sacramento Chapter 7 to provide you with many benefits. Read about those benefits below and about other subjects related to Chapter 7 and other forms of bankruptcy. First, read the below alert that contains important information that you need to know!
Stop Creditor Harassment
If creditors are bothering you at work, harassing your family, friends and neighbors, or calling at all hours, you can put an end to it immediately simply by hiring us to represent you. Upon retaining our services, we provide you with a special telephone number so that you can refer your creditors to us. We will keep the creditors off your back, and you can stop paying your creditors immediately.
Rebuild Your Credit
One of the most common concerns that we hear from clients has to do with the stigma related to bankruptcy. A basic characteristic of human nature is that people are afraid of things with which they are not familiar. Do not count out Sacramento Chapter 7 or 13 bankruptcy as an option until you have taken a short time to get educated on the subject. The stigma against debtors has greatly diminished over the last 20 years, and there is no indication that debtors will be treated less favorably in the future. In fact, the ability to reestablish your credit after Chapter 7 or 13 bankruptcy is better than it has ever been before. Chapter 7 or 13 Bankruptcy can remain on your credit report for up to 10 years, but you can start reestablishing your credit immediately.
First, let us define credit. Credit is your ability to borrow money. Many lenders determine whether or not to lend you money by examining your debt to income ratio; how much outstanding debt you have compared to your income. Remember that the reason that your credit is poor right now is because you have so much outstanding debt. Ask yourself, who would you rather loan money to; the person who has $20,000 in credit cards and could file Sacramento Chapter 7 or 13 bankruptcy at any time, or the person who has already filed Chapter 7 or 13 bankruptcy, has no remaining debt, and could not file another Chapter 7 or 13 bankruptcy for another eight years.
Many of our clients are able to purchase a vehicle on financing the day they receive their Sacramento bankruptcy discharge. Often times you will pay a percentage point or two higher than a person with unblemished credit, but ask yourself how low of an interest rate would you be able to get in your present situation. You should be able to finance a home within two years after receiving a bankruptcy discharge, as long as you can provide a minimum down payment and show the ability to make the monthly mortgage payment. Many consumer debtors receive credit card solicitations within months of receiving a bankruptcy discharge.
We caution you against rumors of the Chapter 7 or 13 bankruptcy stigma that you may hear from friends or family, who may not possess the knowledge of bankruptcy law necessary to give legal advice. They may have your best interests in mind, but a little knowledge is a dangerous thing. Speak with one of our experienced Sacramento bankruptcy attorneys to make sure what you are hearing is the truth.
Keep Your House, Car and Personal Belongings- Reaffirming
Mortgage lenders and automobile finance companies are usually more than happy to keep accepting your current monthly payments both before and after a Sacramento Chapter 7 bankruptcy. This is called reaffirming your debt. They are in the finance business to make money, not to repossess your property. When the finance company reaffirms the debt, they have the comfort of knowing that you have no other outstanding debts, you cannot file Sacramento Chapter 7 or 13 bankruptcy for another eight years, and they can continue to collect the principal plus interest under the original loan agreements. We can make all of the arrangements for you to reaffirm your debts on your home, car or other household goods that you are financing. Many credit card companies are also willing to reaffirm your debt with them and reinstate your line of credit after Chapter 7 or 13 bankruptcy. Although we are happy to arrange reaffirmation agreements on these debts as well, we also caution our clients to avoid getting back into the credit card trap.
Low Fees
Once you have found an experienced bankruptcy attorney with whom you are comfortable, be sure his or her fee is fair. We provide you with very fair fees and gives you the client, a choice of several different payment plans to fit your individual needs. If you need your case filed quickly due to a garnishment, foreclosure or threat of repossession we may be able to file your case almost immediately and offer you a payment plan tailored to your situation.