Sacramento Bankruptcy Attorney Discusses Bankruptcy Facts:
Sacramento Bankruptcy Attorney Discusses Bankruptcy Facts:
Chapter 7 Bankruptcy, sometimes called a “straight bankruptcy”, is basically a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to creditors. The debtor receives a discharge of all dischargeable debts usually within 3 to 4 months. In the vast majority of cases, the debtor has no assets that he would lose so Chapter 7 will give that person a relatively quick “fresh start.”
Chapter 13 bankruptcy is also known as a “reorganization bankruptcy”. Chapter 13 bankruptcy is filed by individuals who want to pay off their debts over a period of 3 to 5 years. This type of bankruptcy appeals to individuals who have non-exempt property that they want to keep. It is also only an option for individuals who have predictable income and whose income is sufficient to pay reasonable expenses left over to pay off their debts.
The most common reasons for filing bankruptcy are: unemployment, large medical expenses, seriously overextended credit, and marital problem. A Harvard Study reported that half of the US bankruptcies were caused by medical bills (50.4% of the 1,458,000 personal bankruptcies in 2001).
Bankruptcy gives a person who is hopelessly burdened with debt, a fresh start by wiping out their pre-existing debt.
If you have questions about bankruptcy, please contact Sagaria Law at 1-800-941-6730 or visit us at www.sagarialaw.com for a free consultation. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, and San Jose.
