Chapter 13 Bankruptcy in Sacramento
Individuals who work hard and live within their means have a right to expect their efforts to result in financial stability. But, the current economic crisis throughout the country has posed unexpected challenges:
- In an effort to save jobs, struggling employers are cutting salaries and asking employees to take unpaid furloughs.
- Medical and other benefit premiums paid by employees are dramatically increasing, further reducing paychecks, even as out-of-pocket medical expenses rise.
- Families are turning to credit just to pay for the necessities of life.
Chapter 13 bankruptcy allows qualified individuals to negotiate new ways to repay their debts and get a fresh start on their lives.
How Sacramento Chapter 13 bankruptcy works
In Sacramento, Chapter 13 is also known as wage earner bankruptcy. It is designed specifically to allow individuals with a certain level of income to negotiate new terms that allow them to repay their debt, generally over a longer period (typically five years).
Individuals must meet certain qualifications to file Chapter 13 in Sacramento:
- Stable income with extra money remaining after paying for bare necessities, such as food and utilities
- Secured debt (collateral-backed debt) of not more than $922,975
- Unsecured debt (such as credit card debt) not exceeding $307,675
The dollar amounts are specific to California, and they can change in accordance with changes in the Consumer Price Index.
When the courts determine individuals meet the basic qualifications for Chapter 13, a complex process begins where all debt is identified, and then creditors meet with the individuals and a court-appointed trustee to renegotiate the terms of each loan so that it can eventually be repaid, generally over a five-year period.
Once the last payment is made, the individuals emerge from the bankruptcy debt-free, and ready to start a fresh life.
Determining if Chapter 13 is right for you
Chapter 13 is not automatically the best solution, even when individuals meet the qualifications for filing. It is critical to review your individual financial situation with a qualified Sacramento bankruptcy attorney before you file for any form of bankruptcy. The attorneys at Northern California Law Center, P.C. can often recommend other alternatives that can help you without undergoing the complicated bankruptcy process. And, when bankruptcy is the right solution, our attorneys can help you choose the form that can best lead to a new, debt-free life.
Contact us to determine if Chapter 13 personal bankruptcy in Sacramento is an option for you
We understand how stressful it is to deal with the financial issues that have become so common in the current economic crisis—you need the assistance of a competent and caring attorney to guide you toward better times. We provide personalized representation to guide you through the legal process and help you resolve whatever problem you are facing, through Sacramento Chapter 13, Chapter 11, or Chapter 7. For your convenience, we offer a free initial consultation and payment plans. To schedule a consultation with an experienced lawyer, contact the Northern California Law Center, P.C. by e-mail, or call us today at (916) 478-4139.
