Best Bankruptcy & Debt Lawyers in Sacramento

About Bankruptcy & Debt Law in Sacramento, United States

Bankruptcy and debt laws in Sacramento, California are governed by both state and Federal laws. Bankruptcy is a process where a person or a business declares the inability to pay off their debts. This legal process provides a fresh financial start for the debtor while ensuring fair treatment of creditors. California’s exemptions system allows affected individuals to protect some property from liquidation during Bankruptcy.

Why You May Need a Lawyer

If you're facing severe financial difficulties and considering bankruptcy, you may need a lawyer’s assistance to navigate the legal process. A lawyer can provide advice on whether bankruptcy is the best option, prepare necessary documentation, represent you in court, and advice on how to handle bankruptcy’s consequences. Furthermore, a lawyer can advocate for you if creditors contest the bankruptcy.

Local Laws Overview

In Sacramento, like the rest of California, the debtor can choose between the state exemptions system or federal bankruptcy exemptions. These rules let you protect specific assets during bankruptcy. Child support, alimony, retirement accounts, disability benefits, etc., are all exempted. However, there's a limit to how much equity you can protect. Also, California has an automatic homestead exemption which applies to real or personal property that you reside in on the bankruptcy filing date.

Frequently Asked Questions

1. Can I file bankruptcy without a lawyer?

Yes, you can file bankruptcy without a lawyer (pro se). However, it's not recommended for many cases due to the long-term financial and legal outcomes.

2. How often can someone file for bankruptcy?

For Chapter 7 bankruptcy, an 8-year period must pass from the filing date of the previous case. For Chapter 13 bankruptcy, the waiting period is two years.

3. Can all debts be erased in bankruptcy?

No, not all debts can be discharged in bankruptcy. Non-dischargeable debts include student loans, most taxes, alimony, child support, and debts arising from fraud.

4. Will bankruptcy stop the debt collection calls and lawsuit?

Yes, once you file for bankruptcy, an "automatic stay" is implemented, which bars most creditors from continuing collection actions against you.

5. Does filing for bankruptcy affect my credit?

Yes, bankruptcy can negatively impact your credit score and remain on your credit report for 7-10 years, depending on the type of bankruptcy.

Additional Resources

Consider consulting the following resources for more information:

• The United States Courts website provides extensive information about bankruptcy.
• The American Bar Association website has resources for finding a lawyer.
• The Legal Services Corporation provides low-cost or free legal services.

Next Steps

If you're considering bankruptcy, consult an attorney who specializes in bankruptcy cases. They can provide advice tailored to your specific circumstances. Also, consider credit counseling from a government-approved organization within 180 days before you file. If hiring an attorney is financially unmanageable, look for legal aid organizations in the Sacramento area that may help.