Plumas County Bankruptcy Lawyer

Considering Bankruptcy as a Debt Relief Option? We Can Help!

If you find yourself in over your head with unpaid debts and unable to find a way out, know that you are not alone. Everyone has financial struggles now and again, but if you have mounting debts, filing for bankruptcy or following a debt relief plan may be your best option. Declaring bankruptcy used to be a shameful topic, but more and more Americans are choosing to use bankruptcy for the powerful resolution it is. Find out how bankruptcy can relieve you of your debts and provide you with the fresh start you need.

Get back on your feet with help from our legal experts and let us dispel any bankruptcy myths you’re concerned about. Our firm can work with you to find a debt solution that works best for your situation.

Filing for Bankruptcy

There are 2 common types of bankruptcy people file, Chapter 7 and Chapter 13. The first step in filing bankruptcy is determining which type of bankruptcy you qualify for, after which you can evaluate other debt resolution options and choose which is best for you. In order to find out which type f bankruptcy you qualify for, you must first take the “means test.” What this test does is it determines your household size in correlation to your income, and evaluates where you fall among other earners in your state. If your income falls below the average, you will qualify for Chapter 7, if you earn more than the California median, you may consider Chapter 13.

Chapter 7 Bankruptcy

Also called debt liquidation bankruptcy, Chapter 7 can help you eliminate certain unsecure debts, which may include credit card debt, personal loans, medical bills, past-due utility bills, and taxes over 3 years old. Chapter 7 does not cover student loan debt, unpaid child or spousal support, victim restitution, court-ordered fines, and taxes less than 3 years old.

Chapter 13 Bankruptcy

Most people choose to file Chapter 13 bankruptcy either because their income exceeded the requirements for Chapter 7, or they wished to retain all of their assets rather than liquidating them. In Chapter 13 bankruptcy, you can make payments towards your debts by following an approved plan. Also called debt reorganization bankruptcy, Chapter 13 allows you to make payments for either 3 or 5 years, depending on the amount of debt and the ability to pay. After the payment period is over, those debts will be forgiven. In many situations, the bankrupt party ends up paying only a fraction of the debt they owed.

Alternative Debt Relief Options

While bankruptcy can be an excellent solution for some individuals, it isn’t the best path for everyone. Some debt relief alternatives include debt consolidation, debt settlement, debt counseling, a deed instead of facing foreclosure, or a short sale. Everyone’s debt situation is unique, and there is no one solution that works for every person, which is why we encourage you to seek the advice of our bankruptcy attorney.

At our firm, our goal is to help you regain control of your finances and your life. Sometimes unpaid debts lead to harassing phone calls and emails, or threats of foreclosure that may leave you worried and disheartened. Should and of your debtors ever violate the rules set in the Fair Debt Collection Practices Act, you can take legal action. If you are facing aggressive debtors, our firm can also help with debtor defense and foreclosure defense whenever your situation requires it.