Bankruptcy FAQ
At the Northern California Law Center, P.C., many of our clients come to us in distress because they are facing mounting debts and unpaid bills. The law offers several remedies to help resolve the situation, and for many of our clients declaring bankruptcy is the best option. Here are the answers to questions our bankruptcy lawyers frequently encounter in our practice:
Q:What is the difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy?
A: In a Chapter 7 bankruptcy, a person must sell his or her nonexempt assets and use the proceeds to repay their debts. Any debts not covered by the sale are generally discharged with some exceptions, including tax debts, student loans, child support, and spousal maintenance. Chapter 7 bankruptcies are the most common types of bankruptcies among individual debtors, and are appropriate for individuals facing extreme debts, such as credit card debt or medical bills.
In a Chapter 13 bankruptcy, the individual debtor adopts a repayment plan to repay the loan over a three to five year period and the creditor must accept payment under this plan. Chapter 13 bankruptcies are appropriate for individuals who have a steady income but still need assistance repaying their debt. Chapter 13 in Sacramento can prevent foreclosure on a home.
Q: How long does the bankruptcy process take?
A: The length of time will vary depending on the complexity of your situation and the court's schedule. However, most bankruptcy cases are resolved and discharged within four to six months of filing the bankruptcy petition.
Q: How long does a bankruptcy stay on my credit report?
A: A bankruptcy declaration will remain on your credit report for seven to ten years.
Q: Will I lose my home, car or other personal property if I file for bankruptcy?
A: Both federal and state laws provide for certain exemptions that allow you to keep certain personal property. You may be able to keep your home, vehicles, and retirement accounts. An experienced bankruptcy attorney can examine your situation and assets and advise you of your allowable exemptions.
Seek Experienced Legal Representation
We understand the difficult financial position you are in, and we strive to provide caring and personalized representation to guide you through the bankruptcy process. We provide the support and guidance you need to help you put your financial problems in the past. To schedule a free consultation with an experienced bankruptcy lawyer, contact the Northern California Law Center, P.C. by e-mail, or call us at (916) 478-4139.
