Chapter 7 Bankruptcy in Sacramento
When the Bankruptcy Abuse Prevention and Consumer Protection Act was signed into law in 2005, many individuals assumed they would no longer be able to file for bankruptcy. Those affected by the current economic situation in the United States can take comfort in the fact that, although the rules have changed, filing bankruptcy is still a viable option. And, many individuals still qualify to file Chapter 7 bankruptcy in Sacramento—the simplest form of bankruptcy.
How Sacramento Chapter 7 works
Chapter 7 in Sacramento is also known as liquidation because it works to repay some unsecured debt by selling certain assets of the debtor. When the funds run out, the balance of the unsecured debt is wiped out. It should be noted that no form of bankruptcy eliminates certain types of debt, such as secured debt (like mortgages and auto loans), taxes, student loans, and child support.
Qualification for Sacramento Chapter 7 bankruptcy
Only individuals who are truly unable to repay their debts qualify for Chapter 7 bankruptcy. To make this determination, federal bankruptcy laws provide a means test, which compares your income with the median income of other California families. In California, the median income currently ranges from $48,140 to $79,477, based on family size.
The experienced bankruptcy attorneys at Northern California Law Center, P.C. can help you determine if you qualify for Chapter 7. If your income is above the median income, you may still qualify to file Chapter 13.
Contact us to determine if Sacramento personal bankruptcy 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 11 or other options. 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.
