Call Now For A FREE Consultation (916) 459-2364

Marriage and Bankruptcy

Marriage and Bankruptcy

Financial problems are often a source of contention in marriages, especially if large debts are burdening the family. If you and your spouse are experiencing overwhelming debt, you may consider filing for bankruptcy to get rid of the debt. However, timing is important. If you are yet to marry, it is essential to figure out whether you should file for bankruptcy before or after the marriage in such situations. The answer to that question lies in you and your partner's financial situation.

How can bankruptcy help to get rid of my debt?

Bankruptcy is a court-ordered procedure where you can eliminate a portion or all of your debt. Once you file for it, you can hope to get creditors off your back. While filing for bankruptcy could be very beneficial for your debts, you need to figure out the best time to file for it.

When should you file for bankruptcy before marriage?

In circumstances where you have burgeoning debt, but your partner does not, you should consider filing for the bankruptcy before the marriage. This will help to minimize the damage to your spouse's finances and credit health.

If you are considering filing for a Chapter 7 bankruptcy, you should consider doing so before the marriage. If you file after the marriage, then the court could consider your spouse’s income in addition to yours, and it might push you above the maximum limit allowed to file for Chapter 7. Conversely, if your soon to be spouse has no income, filing after marriage might actually help you qualify.

When should you file for bankruptcy after marriage?

In situations where you and your spouse both have huge debts, then you should file for bankruptcy after marriage. If you do so, you can save on many court fees as you would need to file only one combined case. It will also help you to save time.

If you would like more information about bankruptcy, contact a Roseville bankruptcy attorney.

Contested Bankruptcy

Contested Bankruptcy

The primary reason an individual goes for bankruptcy is to get their debts discharged by an order from the court. Once they get the discharge, they no longer need to worry about repayments to their creditors. However, the road to financial freedom is not always easy. Bankruptcy proceedings can be complicated, and sometimes the creditors could file for contests against the bankruptcy of a debtor.

What is a contested bankruptcy?

A contested bankruptcy occurs when one or more of the creditors in a bankruptcy proceeding raises issues with your right to a discharge. This could be slightly detrimental to a debtor in getting his debts discharged, but these contests can be dealt with an attorney's help or if the creditors do not show enough evidence to support their charges.

Why do creditors go for a contested bankruptcy?

When creditors go for a contest, they do not do it to make the debtors pay back their due debts. Most creditors have insurances that protect them from any losses. The creditors generally take this route to remove any debtors that have unfair advantages of the procedure. For example, a creditor may contest a bankruptcy if they find out you have hidden some of your property or assets.

How do the creditors prove the allegations?

Considering the seriousness with which the creditors take this step, they may only do it if they have credible evidence against the debtor. The burden of proof is on the creditors in court. If the creditors provide the proof, the court will give ample time to you as a debtor to defend yourself against the evidence brought against you. So if you as a debtor have not taken any fraudulent steps since the start of the proceedings, you need not worry about any action against you.

The best way to avoid contests is to provide your attorney and the judges with as much evidence as possible right from the beginning of the proceedings. Contacting a Roseville bankruptcy attorney can help you get the best representation to relieve your financial burdens.

Common Bankruptcy Mistakes

Common Bankruptcy Mistakes

Filing for bankruptcy is not always an easy path, but it is essential to avoid inevitable common mistakes that many individuals have made in the past.

Mistake #1: Waiting too long to file

One of the main mistakes debtors make is waiting too long to speak with a bankruptcy attorney, opening their financial insolvency to further trouble. While they are aware of the serious situation they are facing by carrying such debt issues, many people cannot successfully navigate a bankruptcy case start to finish alone. In most cases, debtors can save a significant amount of money if they discuss their problems with a Citrus Heights bankruptcy attorney sooner rather than later.

Mistake #2: Not choosing to file under the suitable chapter

It is crucial to file under the correct chapter of bankruptcy. You could cause a reverse in your debt relief while filing under the wrong chapter. Consult a trustworthy bankruptcy lawyer and obtain his feedback before filing under any chapter.

Chapter 13 allows you to keep all of your assets while paying on a court-approved repayment plan over the next three to five years. This type is suitable for someone who is behind on their mortgage payments and wishes to keep their home. Chapter 7 is often quicker and easier, and the court will liquidate your non-exempt assets to pay your creditors and eliminate the rest of your qualifying debts.

Mistake #3: Incurring debt immediately before bankruptcy

If you begin the process of filing for bankruptcy or considering it as a serious option, it is not in your favor to start incurring more debt. It is necessary not to charge cards or take payday loans before filing. This may be seen as a criminal act, as you take loans without the intent to pay them back. Besides, it may be perceived as a fraud and probably break your chance at bankruptcy.

Mistake #4: Refusing to file bankruptcy as a solution to debt

Many debtors reject the solution of bankruptcy because of their fear of its consequences on their credit or other reasons. Knowing the facts about bankruptcy may clear up any prejudice holding you back. Many individuals are affected by the negative ideas propagated by the media. Remember, even if you have lost your assets, the bankruptcy solution can provide you a new beginning.

Consider hiring a Citrus Heights bankruptcy attorney to guide you around any pitfalls that could prevent your discharge.

Bankruptcy Terms and Definitions

Bankruptcy Terms and Definitions

When you are considering bankruptcy to get out from under your debt, you may see many legal terms unfamiliar to you. If you have a brief understanding of the definitions, you may be less overwhelmed and confused by the whole bankruptcy process. This is by no means the complete list, but it will help you with the basics.


A legal proceeding to deal with debt problems related to companies and individuals; technically related to a case filed under any chapter of title 11 of the US Code of Bankruptcy.

Bankruptcy Court

Bankruptcy is held in Federal Court. The judges dealing with bankruptcy in regular services are appointed in every district.

Bankruptcy Petition

A formal application or request to the bankruptcy court to seek protection from debt collections and losing assets.


An individual or a company that claims ownership of money by the debtor is a creditor. These lenders have not been paid in full by the debtor.

Chapter 7

This chapter of the Bankruptcy Code consists of the sale of some non-exempt property of debtors while distributing proceeds to creditors. Chapter 7 often the quickest form of bankruptcy.

Chapter 11

It covers a reorganization bankruptcy where debtors' businesses can go through the continuation and payment of creditors with time.

Chapter 12

It involves the adjustment of a family fisherman's debts or a family farmer according to the definitions of the same provided in the Bankruptcy Code.


Under this chapter of Bankruptcy Code, an individual debtor with regular income can seek adjustments of their debt. This type of bankruptcy has a repayment plan of three to five years and you keep all of your assets unless you choose to sell or surrender them.

Automatic Stay

The moment a debtor files an insolvency petition, his lawsuits, garnishments, collection activities, and foreclosures come under an automatic halt known as the automatic stay. Creditors are legally prohibited from contacting you regarding your debt.


A debtor is a person or company that owes money to lenders.

Dischargeable Debt

Dischargeable debt is the debt under which bankruptcy allows the elimination of personal liability of the debtor to pay on the debt.

Joint Petition

When husband and wife file a bankruptcy petition jointly, or together.

If you are overwhelmed with debt and would like more information on filing bankruptcy, contact a Citrus Heights bankruptcy attorney to get the answers you need to obtain a fresh start.

Divorce and Bankruptcy

Divorce and Bankruptcy

Financial stress is the number one burden on the success or failure of a marriage. Often people find themselves facing both financial ruin and separation from their spouse. If you are having marital and financial difficulties and feel bankruptcy and divorce are your best options, you may want to consider the timing of both legal actions.

Bankruptcy And Divorce Simultaneously

Before filing either of the cases, you must know that when you file bankruptcy in the court, the court offers an automatic stay. The stay ensures that none of your creditors ask you for money until the case has been closed. Typically, it freezes your assets to evaluate the properties or money you owe as debt and how your assets can compensate them. Through the whole bankruptcy process, this hold will remain active.

So, if you file divorce simultaneously, you might not be able to access your money or assets due to an automatic stay. Due to this, the family court will not be able to divide your assets, and the divorce case can take too much time to complete this way.

Know Whether Bankruptcy Should Be First Or Divorce

It makes sense to consider filing bankruptcy before the divorce. Bankruptcy leads to wise knowledge about the assets and debts, whether you and your spouse (who is going to be your ex-partner soon) share the joint accounts or properties. With this, the division will become less painful, leading to your monetary benefits after filing the divorce.

If one spouse files bankruptcy without the other, the other spouse may be liable for all of their joint debts. If this happens to you, you may want to file bankruptcy on your own to eliminate the debt your ex left you responsible for.

Contact an Elk Grove bankruptcy attorney to get the best possible outcome for a tough situation for your bankruptcy and divorce.

Successful Pre-Bankruptcy Planning

Successful Pre-Bankruptcy Planning

What Is Pre-Bankruptcy Planning? This typically is done by evaluating the timing of your filing. There are some reasons why you might want to plan when to file is to legally move assets around or wait until your income best reflects your current situation.

The process of converting non-exempt assets to exempt ones is one aspect of pre-bankruptcy planning. Typically, exempt property is a property that gets protection from the seizure and liquidation. The Bankruptcy Code allows this type of activity if it's done by the rules, but it is best to check with a bankruptcy attorney so you don't find yourself guilty of fraud.

It is always a good idea to consult a bankruptcy attorney

Commonly, 90% of the bankruptcy cases need representation by a lawyer due to prospective candidates lacking knowledge. The court encourages qualified legal representation for every petition to ensure a smooth transaction.

Activities Before Filing Bankruptcy

All your credit card transactions in the prior six to 24 months before your filed bankruptcy will go under examination. You may also welcome problems if the creditor claims that the debtor was insolvent while making purchases and never intended to pay the money back.

Other Reasons for Pre-Planning

Suppose you have just finished a temporary job or seasonal employment, and you will be unemployed in the foreseeable future. In that case, you may want to wait up to six months so your income average will be lower, giving you a better chance of getting all of your qualifying debt removed.

Another reason to wait is if you know you have a large bill, such as a medical bill, coming in the mail but are not sure when it will arrive. Once you file bankruptcy and fill in your creditors' names and amounts owed, you want to try to include all of your debts the first time correctly.

Bankruptcy endows petitioners with a chance to wipe out the debts and begin a fresh new financial life. By delaying the process, you can lose your wages, home, or vehicle. So, when you feel you are unable to handle the debts, contact a Sacramento bankruptcy attorney.