Chapter 7 Bankruptcy, Bankruptcy Sacramento CA

Chapter 7 Bankruptcy Sacramento Ca

People want to understand more about Chapter 7 bankruptcy/bankruptcy in Sacramento, CA.

There has been some confusion in our “Ask a Sacramento bankruptcy attorney” posts regarding this particular type of bankruptcy protection. In general, people want to know why we don’t advocate Chapter 7 bankruptcy as much as Chapter 13. Our answer is that we don’t advocate any chapter of bankruptcy unless it is appropriate for the individual’s financial situation.

Individuals, business owners, or those owning property in the United States, can file for bankruptcy under “Chapter 7”. Chapter 7 bankruptcy (bankruptcy in Sacramento, CA)is actually the most common filing that we perform. It is known as a “straight bankruptcy” or “liquidation”. In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property per court approval–most real estate mortgages (the value claimed as exempt varies from state to state), and security interests for car loans survive. There are various types of debt that are not discharged in Chapter 7. They include, but are not limited to: child support, spousal support, income taxes (less than 3 years old) and property taxes. Thus it is best to consult with a Sacramento bankruptcy lawyer who will explain your options. As with other bankruptcy chapters, this is not available to individuals who have had bankruptcy cases dismissed within the prior 180 days under specified circumstances.

Chapter 7 is the most common, probably due to the mortgage crisis and underwater housing markets. It enables the individual to walk away from debt that can never be repaid, either due to the individual’s personal financial situation—or in the case of the housing market “boom” then catastrophic drop—or circumstances beyond their control. When houses that used to cost upwards of a half-million dollars are suddenly worth less than $200K and the mortgage is still over twice what the home is worth before interest is tacked on many individuals turn to bankruptcy to get out of a mortgage that will not only never be repaid, but they cannot even recoup if they choose a short sale option.

If you are ready to take the step towards a new debt free life and have decided to file for bankruptcy, please contact Sacramento bankruptcy attorney. With the guidance of Sacramento bankruptcy attorneys be better informed and prepared for a debt free future. Our Sacramento lawyers are ready to assist you with the complex process involved in filing for Chapter 7. We will assist you in making an informed decision on how to get your life and finances in order.

Talk to us about your Chapter 7 bankruptcy/bankruptcy in Sacramento, CA.

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