Over 15 Years Of Bankruptcy Guidance For Jackson And Folsom Residents

A foreclosure sign in front of a house - THE LAW OFFICES OF DIANE ANDERSONIf you’re considering bankruptcy, you may be feeling overwhelmed. This information about filing for bankruptcy provides a starting point if you are unsure where to begin. It will discuss Chapter 7 bankruptcy, the cost and filing process in California, and the benefits of hiring a bankruptcy lawyer.

Bankruptcy is often a confusing and stressful process. Working with a Sacramento area bankruptcy law attorney will give you the best chance of a desired end result so you can erase your debts and move forward.

Why File Bankruptcy?

People get in over their heads financially for many reasons: divorce, medical debt, loss of employment, cut in hours or pay, business failure, or home foreclosures and short sales. Most people would avoid bankruptcy if they could, but like many things in life, sometimes bankruptcy is just unavoidable. That’s why you need a bankruptcy attorney who has your best interests in mind and will work to get you on the road to recovery.

By filing bankruptcy, you can erase most of your unsecured debts and keep most of your property. As many know, debt causes all type of problems: health, marital, physiological and self-esteem. Getting rid of debt with the help of an experienced bankruptcy attorney can subsequently ease some of that stress.

How A Bankruptcy Attorney Can Help You

Filing bankruptcy is a complicated and lengthy process. Any mistakes could mean that your debt is not discharged by the court. While hiring a bankruptcy lawyer does increase your cost, it also significantly increases the chance that your case will end successfully.

At my firm, The Law Offices of Diane Anderson, I can assist you with completing paperwork properly and making sure that your petition for bankruptcy is done correctly. Ensuring accuracy also helps prevent bankruptcy fraud, which is a serious offense that could result in heavy fines or even imprisonment.

My goal is to make the process go as smoothly as possible. I have over 15 years’ experience as well as a combined 40 years of a mentor’s experience in protecting consumer and small business owners. I can work with you to:

  • Discharge your debts
  • Stop foreclosure on your home
  • Stop repossession of your car or other property
  • Unfreeze your bank accounts
  • Stop wage garnishment
  • Stop debt collection harassment

I will also walk you through listing any exceptions during the bankruptcy process. This will allow you to keep your personal property and belongings. What’s more, I can advise you on subjects like how to rebuild your credit, or when to stop paying debts during the filing process.

I will examine your case and develop a strategy for you to recover your financial situation. With experience in handling Chapter 7 bankruptcy and Chapter 13 bankruptcy cases throughout Northern California, I am dedicated to helping my clients resolve their financial problems both in court and after filing. If you need a small business bankruptcy attorney, I can also help you file Chapter 7 bankruptcy for your business. I will also give you the individual attention, respect, understanding and assistance you both need and deserve.

How Much Does Filing Bankruptcy Cost In California?

There is no set cost for bankruptcy because the expenses vary based on the situation as well as on your income.

A Chapter 7 bankruptcy court fee in California is $338. However, it is possible to have this fee waived if your salary is below 150% of the government poverty guideline.

A mandatory credit counseling course costs around $50, but cheaper courses are available. Like the court fees, you might be able to receive the course for free if your household income is under 150% of the poverty guideline.

Hiring an attorney to simplify the bankruptcy process means you will incur attorney fees, but they are dependent on the particular firm and the complexity of your case.

What Is Chapter 7 Bankruptcy?

Bankruptcy is a means of recovering from debt. Chapter 7, or liquidation bankruptcy, is the form of bankruptcy that is filed most frequently. Filing Chapter 7 bankruptcy provides you with relief from credit card debt, bank loans, medical bills and other financial obligations.

Filing Chapter 7 bankruptcy removes financial pressures and gives you a clean slate. It decreases or eliminates your debt and keeps collection companies from bothering you or garnishing your wages.

One of the drawbacks to filing bankruptcy is that it harms your credit. However, your credit can improve within a matter of months.

How Do You File For Chapter 7 Bankruptcy In California?

There are many steps involved in filing for bankruptcy, but the first step is to take a means test to verify whether you are eligible. If you pass the means test, you must then take a credit counseling course before you file.

Next, you will need to submit the required paperwork and pay the court filing fee. You must fill out bankruptcy forms and supply supporting documents, such as:

  • Tax returns
  • Pay stubs
  • Bank statements
  • Other asset information
  • A list of your creditors
  • Your credit reports

The court will assign a trustee for your case, who will review your documents, collect your payments and manage your case. The trustee also looks for assets that can be given back to your creditors.

You are also obligated to take a financial management course and provide your certification to the court. After all the documentation has been submitted, you will need to attend a hearing for your bankruptcy case. The entire process of Chapter 7 bankruptcy usually takes three to six months.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as the “wage earners bankruptcy,” is the second most common type of bankruptcy in the United States.

Chapter 13 allows people to reorganize their debts and establish a repayment plan over a reasonable period – a repayment plan can take three to five years to complete. That way, you don’t have to liquidate or sell your assets. Chapter 13 can also help you save your home from foreclosure through the automatic stay.

To file for Chapter 13, you need to obtain the following:

  • A list of your creditors that includes how much you owe them and the reason you owe them
  • Documents showing where you receive income, how much you receive and how often you receive it
  • A list of property or properties you own
  • A detailed budget of your monthly living expenses

Before you file Chapter 13 bankruptcy, you must also take credit counseling courses through an approved agency.

Chapter 7 And Chapter 13 Bankruptcy For Small Businesses

Small businesses can also utilize Chapter 7 and Chapter 13 bankruptcy. How someone sets up their business can determine how the bankruptcy process may work when using either of these options. You can contact me at my firm regarding your situation, and we can work through any questions or concerns you have.

Need Assistance With Filing Bankruptcy? Call Now.

Facing bankruptcy is stressful enough without trying to understand the legalities on your own. At The Law Offices of Diane Anderson, I will guide you through each step and make the process easier for you. If you live in the Sacramento area, come to my offices located in Folsom and Jackson.

For more information about bankruptcy in California, or to speak with me during a free initial consultation, call today at (209) 729-7477 or fill out my online contact form.

I am a debt relief agent. I help people file for bankruptcy relief under the Bankruptcy Code.


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(209) 729-7477