Important information about bankruptcy in Sacramento

Sacramento and the surrounding areas are home to numerous bankruptcy attorneys. However, only the attorneys at Maxey | Kaminski can provide the competent and comprehensive services our clients have come to know us for. Do not be fooled by firms offering cut-rate prices for below average services. While others may be looking to take advantage of your financial hardship, our goal is to serve our client’s needs to the fullest extent of the law. We accomplish this by analyzing every aspect of a client’s case, not just through bankruptcy, but also consumer protection laws that may give you legal recourse and statutory damages against creditors and debt collection agencies.

When You Should Consider Declaring Bankruptcy

When you’re struggling financially and behind on debt, it can feel like problems are snowballing. If you’re unable to keep up with payments or facing lawsuits from creditors, bankruptcy is one option available that may help.

How bankruptcy affects you

One of the biggest misconceptions about bankruptcy is how it will affect your credit score. Truth is, if your behind on payments, loans are in default or accounts have been sent to collections, the damage to your credit has already been done. In fact, filing bankruptcy can actually improve your credit score because it signals to credit agencies that debts will be discharged and income will be more readily available. This “fresh start” is precisely what bankruptcy was intended to achieve.

What to Do Before Filing for Bankruptcy

Stop making payments on all consumer debts and contact an attorney. If creditors are calling you and/or sending letters advise them that you are consulting a bankruptcy attorney. If you have been served with a lawsuit to collect on an outstanding debt do not wait to contact us. Failure to act immediately could result in a judgment against you that could be used to levy your personal property, place a lien on your home and/or garnish your wages.

What is the process of Filing for Bankruptcy?

Contact us for a free consultation and we will advise you of the best possible course of action. Typically, a credit counseling course must be completed prior to filing the bankruptcy petition. Once the petition is filed, an “automatic stay” is created, which prevents creditors from further harassing you and making attempts to collect on the debt. A meeting will take place that will include the bankruptcy trustee and any creditors who wish to join. A second course must be completed prior to the discharge. Upon completion of these requirements, debts are discharged and your financial fresh start begins.

Types of Personal Bankruptcy

  • Chapter 7 – Eliminates most unsecured debt such as credit cards, medical bills, leases, and lawsuits
  • Chapter 11 – Reorganizes debt for those who are over the debt amount allowed in Ch. 13
  • Chapter 13 – Reorganizes debt and allows you to catch up on mortgage payments, taxes, child support, and spousal support over 3 to 5 years
  • Chapter 12 – Reorganizes debt for farmers and fishermen

Be Aware of Your Rights

Creditors and collection agencies often use harassing and illegal tactics to collect debts. Just because a debt is owed does not mean anything goes when it comes to collection. If you are being harassed, threatened, or otherwise treated unfairly the creditor and/or collection agency may be violating your rights under federal law such as the Fair Debt Collection Practices Act or state law such as the Rosenthal Act. Violations of these laws could give you a legal cause of action against your creditors in addition to the discharge of debt you are entitled to under the Bankruptcy Code. Call us today to see if your rights are being violated.