Bankruptcy Basics

Are you juggling your monthly bills, or losing sleep worrying about your debt? Are you considering a debt consolidation loan or a risky title loan to get a fresh start? Not all debt relief options are equal, and one option could be the difference in saving your property or walking away worse than you started.

Oftentimes, people view bankruptcy as a negative option. In fact, bankruptcy can actually be your best solution for debt relief. Bankruptcy can give you a chance for a clean slate or fresh financial start.

The Automatic Stay

One of the biggest perks of bankruptcy is that it will put an immediate halt to all debt collections. Bankruptcy will provide you the opportunity to pay your debts over time or eliminate them entirely. Due to the automatic stay going into effect when you file bankruptcy, all creditor’s actions against you to collect a debt will stop.

∙ Harassing phone calls
∙ Eviction or foreclosing on your home
∙ Bank levies or payroll deductions
∙ Vehicle repossession
∙ Utility shut-offs

Once you have decided to file bankruptcy the next step will be to contact a bankruptcy attorney and submit a petition to a bankruptcy court in your area. A petition will list all your assets, such as:

∙ Houses
∙ Cars
∙ Furniture
∙ Electronics Products
∙ Bank Balance and other valuable assets

At the time of your filing, you will also be required to provide a recent tax return and a certificate of completion of a credit counseling class with your petition. From there, the court will calculate the amount of income, expenses, and the debt you have to determine what, if anything, you will pay towards your debt.

If you are going through a financial hardship and unable to pay your debts, bankruptcy is a good option. Contact a Sacramento bankruptcy attorney to answer more of your questions and to find out how you can get financial relief.