Bankruptcy & Debt Settlement Resolve Most Debt Problems

Debt for families and homeowners in California becomes unmanageable when life changes. Filing bankruptcy solves most credit card and mortgage issues. At the Liviakis Law Firm we are confident that we can help you quickly recover to a stronger financial future. By using Chapter 7 and Chapter 13 bankruptcy we help you reduce your debt without losing your assets. With the help of our Sacramento bankruptcy attorneys you will find the debt relief you need to successfully overcome stubborn debt problems. Since solving debt is a complex issue you need a bankruptcy lawyer that has a proven record for reducing a variety of debts. As an Award-Winning Law Firm we know that eliminating your credit card debt is not enough to get your family back on track. That’s why we work with you personally to customize a debt-reduction plan that prevents creditors from taking the things you have worked hard for. We protect homeowners while reducing monthly payments on credit card debt. From this work we have received an A+ Rating from the Better Business Bureau. We give our clients hope and confidence when thinking about their financial life. Our bankruptcy attorneys focus on getting you out of debt while still thinking about building a successful financial future for you. These kind of financial solutions help Sacramento families for the long term.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy

Many local residents are confused about how bankruptcy actually helps debtors in a dignified way. So we make sure to educate our clients with simple legal advice that they need to turn their financial problems around. Our debt attorneys explain how filing Chapter 7 bankruptcy works to eliminate credit card and medical debt without repayment. Chapter 7 bankruptcy usually works well for those with low income and a modest amount of assets. Many middle-income residents of Sacramento, CA file Chapter 13 bankruptcy to help reduce payments on all types of debt while ensuring that they can maintain their family real estate.

Limitations of Filing Chapter 7 Bankruptcy

Liquidation bankruptcy can be relatively short and simple when compared to reorganization bankruptcy. However, there are several important limitations that debtors need to understand before filing. Not everyone qualifies for chapter 7 bankruptcy. Debtors must pass certain income tests. Those tests compare a debtor's income to the median income of a family with the same household size. To qualify in Sacramento County you need to consider your income during the last six months. If you have higher than average income you need to consider the IRS-prescribed living expense amounts. The chapter 7 means test helps determine your eligibility or disqualification. A bankruptcy lawyer usually prepares these and other court mandated forms. Many people in debt considering bankruptcy have higher than average household income figures. If chapter 7 bankruptcy is no longer an option for you, consider chapter 13 bankruptcy or debt settlement because they offer debt relief to higher income debtors.

Keeping Your Assets in Chapter 7 Bankruptcy is Challenging for Some Debtors

A Trustee that is assigned to new chapter 7 case has the right to sell your nonexempt assets. Debtors can only keep assets that fit into allowed categories within the bankruptcy code. Assets must be the right type and they must be low enough in value; otherwise they could be lost to the chapter 7 trustee. Chapter 7 trustees sell non-exempt assets if doing so would allow them to raise money to pay your unsecured creditors. For homeowners, chapter 7 bankruptcy is risky because the trustee can sell a debtor's home. If there is too much equity, a homeowner faces the possibility of having his or her family home sold by the trustee to pay unsecured creditors. This is true even when the homeowner is completely current on monthly mortgage payments.

Some Debts Are Not Discharged in Bankruptcy

Chapter 7 does not help debtors who are struggling with debts that cannot be discharged or reorganized in chapter 7. Some of those debts include recent tax debt, child support and alimony. In addition, car payments, mortgage payments, and property taxes cannot be restructured in chapter 7. For these types of debt, a debtor often benefits from making reduced payments inside a chapter 13 bankruptcy plan. Read more about filing both Chapter 7 and Chapter 13.

Chapter 13 Bankruptcy Offers Relief for Homeowners and High Income Earners

Most confusion about chapter 13 reorganization relates to the amount of debt that a debtor must pay. Some new clients mistakenly believe that filing chapter 13 requires them to pay back their creditors in full. Most of time they have already tried to pay their debts and haven't made much progress. Chapter 13 plans can actually eliminate just as much debt as chapter 7. In Sacramento, California chapter 13 bankruptcy debtors pay less than half of their credit card debt on average. And when your income is lower than average you can submit a plan that offers to pay zero towards credit cards. This makes it similar to what a debtor would pay credit card companies in chapter 7. The transition between one form of debt relief to another can be performed by a local bankruptcy lawyer. In addition to reducing the principal debt on credit cards, a debtor may also obtain a significant interest rate reduction. Most of the time revolving credit card accounts are not entitled to any interest during the three to five year chapter 13 reorganization. For debtors that earn higher than average income chapter 13 offers a real change to get out of debt and still have money available for living expenses.

Protecting Your Family Home in Chapter 13 Bankruptcy

Bankruptcy is Sacramento often begins because a homeowner wants to protect their home from creditors. With rising home values, residents have a lot at stake in trying to protect their family residence. Their homes are targets for mortgage companies that have not been paid in several months and are unwilling to modify the mortgage. Credit cards companies often look at the value of a cardholder's home when deciding whether to sue them to obtain a judgement lien. Chapter 13 gives homeowners protection to keep their homes away from the foreclosure process so long as they make the monthly payments required in the chapter 13 plan. And credit card companies cannot bring lawsuits against homeowners when they are in the middle of a chapter 13 bankruptcy. A federal debt reorganization plan allows the debtor to maintain their home, even when the value has risen significantly. The same option is not always available in chapter 7.

Getting Tax Debt Relief with a Citrus Heights Bankruptcy Lawyer

Reorganization bankruptcy also allows taxpayers to reduce the monthly payments that the IRS and Franchise Tax Board requires of them. That's because a debtor has the ability to stretch out the payments on the tax debt for up to sixty months for tax debt that was incurred recently. A tax debtor can also discharge old tax debt as long as certain tax filing and assessment rules are met. This kind of treatment in chapter 13 for tax debt is often much better that working with the IRS outside of bankruptcy.

Credit Card Debt Prevents Californians From Retiring Young

Many Californians are in the habit of buying new products and paying for them later. Buying new products without reservation keeps businesses running and churning out new products. Consumerism is great for our economy but too much puts you in financial jeopardy. Certain products, like smart phones, can actually increase our own productivity in our business and personal lives. Yet most of us will not benefit from having a phone that is just six months newer that the model we have currently. When we charge these kind of new purchases they often take years to pay off. Paying later is expensive because of the extreme interest rates that creditors charge. If you are paying 20% interest, that $500 purchase could cost $1500 by the time it's paid in full, if it's ever paid in full. If it was just the one purchase we might be able to pay off the debt in a reasonable amount of time. With hot new products like cars, clothes, and even time shares it is easy for Folsom residents to go to the mall and increase their revolving debt load. After paying the minimum monthly payment on the cards a consumer ends up needing the cards just to cover their living expenses. This cycle often continues for years, eating up the majority of disposable income that an consumer earns during the prime of their career. Only when they are faced with a life changing event like a job loss, medical emergency, or residential relocation, do they actually realize that they are in way over their head.

How to Eliminate High Interest Credit Card Debt

The good news is you can stop the credit card interest cycle and start planning for the future. Americans can start saving for retirement and retiring younger if they recognize earlier on that they can change their financial habits. Bankruptcy is one of the most powerful ways to obtain a financial rebirth. Zeroing out credit card balances and reducing credit availability gives consumers a grounding effect. They no longer have to pay unreasonably high interest payments to make. At the same time they no longer have the temptation of making new purchases and charges that they ultimately won't be able to pay for. For those that have the ability to pay back some or all of the debt, chapter 13 bankruptcy gives debtors a chance to pay a percentage of the debt without interest. Doing so offers debtors a chance to settle their finances and move on in a relatively short amount of time, usually after a three to five year payment plan. Chapter 7 is sometimes even simpler for credit card holders. If they are within the income and asset guidelines a debtor can file a petition to eliminate all of the debt. After bankruptcy a debtor usually finds relief in only buying things that they can afford rather than riding a credit card roller coaster each month. Over time a debtor can regain access to credit cards, usually about four to five years after bankruptcy.

Award Winning Bankruptcy Attorney Helps Business and Home Owners

Getting out of a debt is no easy task, but with the Liviakis Law Firm by your side you will be confident in knowing what your options are for effective debt-relief. We also help residents in the Rocklin area get out of debt with confidence! Whether you have fallen behind on your mortgage because of a change in income, increasing interest rates, or a failed loan modification, we can help protect your family home from foreclosure. Call us today for a free debt evaluation with our award-winning attorney.

Give Yourself the Fresh Start You Deserve, File Bankruptcy with Confidence

Our law firm is here to give you expert guidance on whether you qualify for bankruptcy and what you can expect in the process. We have been focusing on debt relief through bankruptcy for a long time. So, you can be confident that we will lead you through the process of resolving your debt problems so you can start rebuilding your financial future. We are always available to respond to your concerns along the way. Just call us to get started with a free initial consultation where we can answer your questions about what happens to the debt you have, which assets you can keep, and how much the process will cost. Each client is unique to us so we develop a customized plan to fit your needs.