If you are overwhelmed by financial pressure, burdened by huge medical bills, IRS Liens or worst still, lost your job, we can HELP YOU through the complex and often misunderstood process of Personal Bankruptcy.
Bankruptcy would stop the Tax Levies, Pending Foreclosures, Wage Garnishments, Repossessions and annoying creditors’ calls, giving you the opportunity to get your financial life back in order.
Bankruptcy happens and every situation is unique. It is not as bad as it sounds, so stop stressing and seek relief now.
If your business is being crippled by debt and there is no end in sight, it is time to seek Business Bankruptcy Relief. It is not business failure and should not be viewed as such. You can continue to operate your business whilst in Bankruptcy.
Bankruptcy is a legal protection, granted by Federal Law. Seek legal guidance right away from one of our lawyers to determine the chapter that best suits you as an individual and your business.
Whether you need a Chapter 7, Chapter 13 or Chapter 11 Bankruptcy, our California bankruptcy lawyers, can help you through these trying times. When hiring a Bankruptcy lawyer, it is important to employ a lawyer well versed with the new Bankruptcy laws and this is where our Sacramento area lawyers can help. They stay on top of all the new California bankruptcy laws.
Bankruptcy procedures are complicated. Navigating the complex set of rules and procedures can be a difficult task. It is important to hire the services of an experienced bankruptcy lawyer to help you through the convoluted process. Majority of debtors are unable to repay their creditors due to financial problems. A lot of people are reeling under credit card debts and cannot even manage the minimum payments. The financial hardships generally end up taking a toll on the health of the individuals and their personal relationships. An experienced Bankruptcy Attorney can help you navigate through these troubling times.
If you are not in a position to repay your creditors, filing bankruptcy may be the only way out for you if you are unable to repay your creditors and you have little or no assets and you have no or limited ability to repay. Call our office today to receive help.
Bankruptcy can be a stressful event. Don’t take chances by going alone. There are numerous reasons why people file for bankruptcy. Many file for bankruptcy because of unemployment while others file because of a divorce or unexpected medical expenses. Whatever may be the reason for your bankruptcy filing, Sacramento bankruptcy lawyers at Nonye Ugorji Law Corporation can assist you with the process.
Our Sacramento, Carmichael, Elk Grove, Roseville, Rancho Cordova, Yuba City, Marysville and Davis Bankruptcy Lawyers and team have helped clients across California with debt relief. We deal in:
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy and
- Chapter 11 bankruptcy
Sacramento Foreclosure Lawyer Sacramento CA Foreclosure Attorneys
The prospect of having to undergo foreclosure can be a frightening thought for any homeowner. The sad truth is that many homeowners across California and throughout the United States have to deal with the prospect of losing their homes through foreclosure.
Homeowners in California who are facing foreclosure have certain legal rights. One legal option available to such homeowners is stopping foreclosure with Bankruptcy. It is legally possible to stop the foreclosure of your home by filing for Bankruptcy. However this is a complex process and you should seek the assistance of an experienced California Bankruptcy Attorney.
Homeowners in California facing foreclosure generally file for bankruptcy under two chapters – Chapter 7 and Chapter 13. Bankruptcy is a legal process. The objective of Bankruptcy is to afford an honest debtor a fresh financial start in life. Most of the debtor’s debts will be wiped out by bankruptcy. Once a debt is wiped out by bankruptcy, the debtor is no longer responsible for that debt. Legally speaking, the process of wiping out a debt in bankruptcy is referred to as a discharge. Once a debt is discharged, the creditor cannot seek to enforce or collect that debt from the debtor who received a discharge in bankruptcy.
Homeowners in California facing foreclosure have many legal options to stop foreclosure. While bankruptcy is one of such legal option, it should always be used as the last option. Exhaust all your other options such as debt negotiation and debt consolidation. More often than not, the lender will be willing to settle the debt. Sometimes you may be better of selling the house with the consent of the creditor and paying the creditor with the proceeds of the sale. However if all your options have been exhausted, you can file for bankruptcy to stop foreclosure.
CHAPTER 7 BANKRUPTCY
Chapter 7 is the most popular individual Bankruptcy in California. Chapter 7 is sometimes referred to as liquidation. Once you file a Chapter 7 Bankruptcy, the court will appoint a Bankruptcy Trustee to oversee your case. Generally a Chapter 7 bankruptcy filing eliminates all unsecured debts but allows you to keep secured assets that you are capable of maintaining the contractual payments on. It may not stop Foreclosure, where the debtor is unable to continue making payments on the home but will delay the foreclosure.
CHAPTER 13 BANKRUPTCY
Chapter 13 Bankruptcy is an individual Plan of Re-organization. This allows individuals propose a structural repayment plan for certain debts that they are required by law to pay; e.g. Taxes, or past due mortgages, auto or support payments without incurring further penalties and interests. This plan must be accepted by the court. If you want to stop foreclosure, you should include your mortgage debt in the payment plan. As long as you make the payments under the plan, you will be allowed to keep your assets.
CHAPTER 11 BANKRUPTCY
Chapter 11 Bankruptcy is the chapter of the Bankruptcy for reorganization, usually involving a business entity, corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11. It is similar to Chapter 13 except that Chapter 13 is for individuals whilst Chapter 11 is for businesses or Corporate entities.
California Bankruptcy Frequently Asked Questions and Answers
1. There are so many bankruptcy chapters. How do I choose the right chapter?
Generally individual debtors file for bankruptcy under Chapter 7 or Chapter 13. If you have no income, then you should file under Chapter 7. However to qualify for filing under Chapter 7 of the Federal Bankruptcy Code, you must pass the Means Test. A Chapter 7 bankruptcy proceeding is also known as liquidations. If you have a regular source of income or you do not qualify for filing under Chapter 7, then you can file for bankruptcy protection under Chapter 13 of the Federal Bankruptcy Code.
2. What is a Chapter 7 proceeding?
In a Chapter 7 proceeding, the Bankruptcy Court will appoint a trustee to take over your non-exempt assets. The trustee will sell these assets and pay off your creditors from the sale proceeds. However the trustee will not take over all your assets. In some states you can only opt for the exemptions provided by state law while in some states you can choose between state and federal law exemptions.
3. What is a Chapter 13 proceeding?
A Chapter 13 proceeding is sometimes known as a wage earners plan. In a Chapter 13 bankruptcy proceeding, you can retain your assets. You must submit a payment plan to the Bankruptcy Court. Your plan must explain how you intend to pay off your creditors. You must make payments to the trustee according to your plan. The trustee will distribute the payments amongst your creditors. Generally a Chapter 13 payment plan provides for payment of all debts within 36 months to 60 months.
4. What is the Automatic Stay?
Once a bankruptcy petition is filed in the Bankruptcy Court, an automatic stay comes into operation. You don’t have to apply or petition the Bankruptcy Court for this stay. It comes into operation by law. This stay will continue until you receive a discharge or your bankruptcy petition is dismissed. Sometimes the creditors can petition the court to lift the stay. During the operation of the stay, your creditors are not permitted to contact you or take any steps to collect the debt.
5. Can I and my spouse file a joint petition?
Married couples can file a joint petition. They can also file separate individual petitions. You and your spouse should file a joint petition if you have a lot of joint assets. The fee for joint filing is the same as individual filing. If your non-solvent spouse has limited resources or you and your spouse are financially interlinked, then joint filing would be more beneficial. The biggest benefit of a joint filing is that it can prevent situations where the creditors of the non-solvent spouse attempt to seize the assets of the financially solvent spouse. Joint filing is beneficial for married couples when most of the assets are in the name of the insolvent spouse or the solvent spouse is likely to receive some inheritance.
Debt collectors and creditors will go to any extent to collect a debt. They will harass you by calling you throughout the day thereby giving you a stressful time. You can use bankruptcy to stop debt collection. You also have certain rights under the Fair Debt Collection Practices Act.
The Fair Debt Collection Practices Act regulates the collection activities of creditors and debt collectors. If the debtor collector contacts someone other than you for the purpose of obtaining information about you, the debt collector has to identify himself and state that the purpose of the contact is to confirm or verify the information. If the other person asks for the details of the creditor, the debt collector is required to provide the details. The debt collectors cannot inform such person that you owe a debt and cannot contact the person more than once except if that person has requested to do so or if the debt collector believes that the information provided by the person is incorrect and that the person has the correct information when the subsequent contact is made. The debt collector is not allowed to communicate through post cards or use any language or symbols in the envelope that would indicate that the contents of the envelope deal with debt collection. If the debt collector knows that you have a lawyer, all future correspondence must be addressed to the lawyer.
All contacts must be between 8am and 9pm unless you agree to be contacted at any time. You cannot be contacted at your workplace. If you send a letter to the debt collector asking him to desist from contacting you, the debt collector cannot contact you except to inform you that there will be no more contact.
The debt collector cannot:
- Make any false representation about the debt including that using symbols or seals to indicate that the activities of the debt collector are backed by the government.
- Indicate or represent that the communication is from a lawyer.
- Make any false claims about the legal status of the debt or provide any false representation about the legal nature of the debt (i.e. civil offense and not a criminal act punishable with arrest) and defenses available to you.
Under the federal bankruptcy code once a debtor files for bankruptcy under any chapter an “Order for Relief” comes into operation. The “Order for Relief” is commonly referred to as the “automatic stay”.
Once this automatic stay comes into operation creditors cannot collect debts from you. All debt collection activities against you will cease. You need not worry about creditors initiating legal proceedings or lawsuits to recover the debt. They cannot contact you even over the telephone demanding payment of the debt. The automatic stay prevents wage garnishment and levies.
Creditors and collection agencies cannot pursue any debt or claim that you may have incurred prior to your Bankruptcy filing. The stay will continue to operate till you receive a discharge or your Bankruptcy petition is discharge or the Bankruptcy court lifts the stay on an application filed by a creditor.