Filing Bankruptcy in Sacramento

For both individuals and businesses, the Sacramento bankruptcy filing process is often a complicated process.  Any form of bankruptcy requires debtors to start the process by producing a detailed accounting of all income, assets, and debts.  This information helps to determine the type of bankruptcy that can be filed:

• Liquidation:  When individuals or businesses have little income and assets, they may qualify for Chapter 7 bankruptcy.  This is considered the simplest form of bankruptcy—most assets are sold to repay certain creditors at least part of what they are owed.  Under Chapter 7, not all types can be eliminated—certain debt, such as collateral-backed debt (secured debt), taxes, student loans, child support, and others must still be repaid.
• Restructuring:  Individuals with sufficient income or businesses with a good chance of future success can file bankruptcy in Sacramento by negotiating new repayment terms to pay off outstanding debt over an extended period of up to five years.  Individuals use Chapter 13 for this option, while businesses typically file under Chapter 11.

The process of bankruptcy litigation in Sacramento

The processes for liquidation and restructuring are different, and each process tends to be more complex for businesses than for individuals.  But, the overall process is similar to the following:

• Credit counseling:  By law, anyone who intends to file bankruptcy must obtain approved credit counseling prior to filing.
• Gathering financial information:  It is critical for individuals or businesses entering into Sacramento bankruptcy litigation to begin with a complete, detailed accounting of income, assets, and outstanding debt.  This information is the basis for every process that follows.
• Filing the petition:  A complete and accurate petition must be filed to ensure acceptance by the court.  Even one error can stop the process in its tracks.
• Negotiation:  Under the supervision of a court-appointed trustee, the debtor undergoes different processes, depending on the form of bankruptcy.  Under liquidation, proceeds from the sale of assets are used to repay some debt.  Under restructuring, the debtor must negotiate with each creditor to develop a new debt repayment plan.
• Completing the process:  Once the bankruptcy plan has been accepted by the court, the debtor begins whatever process was negotiated to satisfy the terms.  Once all debts have been satisfied, the debtor emerges from the process debt-free.

Contact us to help with a Sacramento bankruptcy filing

We understand how stressful a bankruptcy can be for individuals and business owners.  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, whether by filing bankruptcy in Sacramento, or through 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.