BANKRUPTCY EXPLAINED

WHAT IS BANKRUPTCY?

Filing for bankruptcy protection is designed to result in a discharge of most debts listed in your bankruptcy schedules. The federal bankruptcy laws allow an individual or couple to file every 8 years. Chapter 7 bankruptcy is the most common and is filed in the Federal Bankruptcy Court. There is a brief court appearance which requires both you and your spouse to attend. The hearing is known as the “Meeting of the Creditors.” The bankruptcy court is located at 501 I Street, Sacramento, California. 

WHY CHOOSE OUR COMPANY? 

Our staff is friendly, knowledgeable and is sensitive to your needs during this stressful time in your life. We have over 50 combined years of bankruptcy experience to guide you through this process. Our office has filed 1000’s of cases successfully in the bankruptcy court for debtors seeking debt relief. We are a referral-type business and strive to provide excellent service while staying within your budget. We realize that without you the client, we would have to close our doors. We are here to help you and appreciate your business.

Although no one can guarantee the outcome of your legal proceeding, your satisfaction in the quality of our work is guaranteed.

IS BANKRUPTCY RIGHT FOR ME?

The most common signs of bankruptcy are when expenses exceed income, basically more money going out then coming in. This might be a result in loss of employment, medical reasons or a vicious trap such as overspending. The federal bankruptcy laws provide bankruptcy protection for individuals going bankrupt. Another word for bankruptcy is a fresh start. Other signs of bankruptcy may be judgments against you, repossessed vehicle, home in foreclosure or served a current wage garnishment.

DO I QUALIFY FOR BANKRUPTCY?

There are many factors involved in order to file bankruptcy protection provided by the federal bankruptcy laws. We provide bankruptcy solutions to help eliminate debt and give you a fresh start.     

On April 20, 2005, the President signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The Act, which exceeds 500 pages in length, made significant changes to the Bankruptcy Code and affects nearly every aspect of bankruptcy cases. 

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 passed through the Senate. The new bankruptcy laws went into effect on October 17, 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 now requires debtors to pass a strict means test which determines whether they can have their debts liquidated through a Chapter 7 bankruptcy.

Even though the bankruptcy laws had a complete overhaul, it is not true that the bankruptcy changes are eliminating Chapter 7 relief for most people. The director of the American Bankruptcy Institute estimates that the new bankruptcy changes will adversely affect a mere 2-3% of all debtors. This means that up to 98% of all debtors attempting to file for Chapter 7 bankruptcy are eligible to file under the new laws. 

You may wonder how the changes in the law will affect you. Ultimately, you will have to take a few extra steps in order to file bankruptcy.

1.     All debtors are required to obtain a “Pre-Petition Credit Counseling Certificate”

2.     All debtors must complete an “Instructional Course in Personal Finance Mgmt”

3.     All debtors must submit tax returns and pay stubs if applicable

We are “A Debt Relief Agency” which provides bankruptcy solutions to people wishing to go bankrupt. Please rest assure, so long as you are honest and meet the requirements under the new law, you are entitled to debt relief. We can guide you through all the requirements of filing for bankruptcy. The new laws simply require more steps. Affordable Legal Assistance is committed with their compliance in the bankruptcy laws and makes the process as smooth as possible.

WHAT IS A "MEETING OF THE CREDITORS"?

A meeting of the creditors is a scheduled time, date and location which debtor’s must be present. You will receive notification through the mail stating time, date and location approximately 10 days after the filing of your bankruptcy petition. Sacramento bankruptcy hearings are located at 501 I Street, Sacramento, California. 

You must provide a government issued photo identification and proof of social security number. Failure to appear at the hearing may result in dismissal of your case. 

DISCHARGE OF DEBTS

A Chapter 7 discharge order eliminates a debtor’s legal obligation to pay a debt that is discharged. Most, but not all types of debts are discharged if the debt existed prior to the date the bankruptcy petition was filed. 

Some common types of debts that are not discharged in a Chapter 7 bankruptcy are taxes (unless taxes were filed over three (3) years prior to filing bankruptcy), domestic support obligation, student loans, fines, penalties and criminal restitution obligation.

EXEMPT PROPERTY

The federal bankruptcy code allows you to keep certain property as exempt. Exempt property will not be sold and distributed to the creditors. The bankruptcy laws are designed to give you a fresh start and not strip you of all your property and assets. It is imperative to have an experienced in the preparation of your bankruptcy proceedings to make sure ALL your property is exempt properly.