Filing bankruptcy in Elk Grove begins with an attorney or individual lodging a petition with the Federal Bankruptcy Court. Individuals and businesses considering bankruptcy to eliminate their debts should consult with an attorney before filing a new case. The bankruptcy laws change frequently and a lawyer can advise you of these changes.
When a bankruptcy petition is filed with the Court a filing fee is assessed to each Elk Grove resident. For chapter 7 the fee is currently $306 and for chapter 13 the filing fee is currently $281. These fees change from time to time.
Along with the petition, a group of schedules must be filed. These schedules require that the attorney list the debtor's assets. Assets are personal and real property that the debtor has an interest in. These include things like cars and houses, as well as furniture and jewelry.
The bankruptcy attorney also lists the liabilities that belong to the debtor. Individuals in Elk Grove typically have unsecured credit card debt, medical debt, and sometimes tax debt. These debts usually do not have collateral associated with them. So if they meet the criteria under the bankruptcy code they can be discharged. Tax debt is the most difficult because the debtor has to meet a special set of rules to eliminate it.
Secured debts are also part of the schedules. These include things like car loans and mortgages on homes. They can be reduced sometimes along with the interest rates that are associated with the loans. But, eliminating a secured debt may require surrendering the property.
Finally the debtor's attorney lists current and historical income along with any transfers that the debtor has made. Its important that all of the bankruptcy forms are filed in the beginning, otherwise the court may dismiss the case rather quickly.