Posted On: May 13, 2010

Which Bankruptcy Chapter is Right for Me?

A Sacramento bankruptcy lawyer answers: Which Bankruptcy Chapter is Right for Me?

There are two policies encompassed within bankruptcy law – liquidation and repayment of debts or rehabilitation where the filer is kept as a going concern and debts are paid over time.

A bankruptcy filer will chose a bankruptcy law Chapter of bankruptcy depending on the filer’s assets, liabilities and goals.

Bankruptcy Law Chapter 7

A bankruptcy law Chapter 7 filing is usually chosen and recommended for those with a large amount of consumer debt who either have an income that is less than the median income corresponding to their household size or have an income with enough liabilities that leave them without a significant amount of monthly disposable income that could be used to repay their debts over five years.

A bankruptcy law Chapter 7 filing will leave financing on collateral with
the same terms entered into prior to the bankruptcy.

Bankruptcy Law Chapter 13

A bankruptcy law Chapter 13 filing is a reorganization that allows a bankruptcy filer to use the bankruptcy laws and propose different terms that enable the cure or catch up of past late payments and reorganization. A person filing under Chapter 13 can repay back taxes over the term of the reorganization at 0% interest. An attractive feature of Chapter 13 is repayment of financed item at its actual value as opposed to the payoff amount owed. The actual value is the secured value and the balance is treated just like credit card debt.

Some bankruptcy filers are forced to file Chapter 13 because they do not qualify for Chapter 7. Bankruptcy filers in this situation can either choose not to file bankruptcy and be responsible for 100% of their debt or file Chapter 13 and repay their debts according to their means.

Bankruptcy Law Chapter 12

A bankruptcy law Chapter 12 filing is a reorganization for those who meet the definition of a farmer. These bankruptcy filers file under Chapter 12 and use bankruptcy laws specific to financial
situations commonly encountered by farmers.

Bankruptcy Law Chapter 11

A bankruptcy law Chapter 11 filing is a reorganization that allows a corporation to receive a discharge of its debts and propose a plan of reorganization that will allow a business to start over without being burdened by loans it cannot repay or leases it no longer needs.

Chapter 11 is also the alternative to those who cannot file Chapter 13 because they exceed the debt limits for collateral backed debts and credit card type debts.

Your goals and the types of the debts you have will compel you to file under Chapter 7, Chapter 13, Chapter 11, or Chapter 12.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

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100% Money-Back Guarantee from Sagaria Law

If the courts do not accept your bankruptcy filing because of an error on our part, we will refund 100% of your money, including the filing fee!

At Sagaria Law, PC we want to guide you on the path to financial freedom and realize this is not an easy task for most. We respect your devotion to better your circumstances even with financial hardship and thus are willing to guarantee that if you retain us, we will do everything we can, legally and ethically, to help you become debt-free.

The Fine Print

The Sagaria law guarantee covers everything that a bankruptcy law firm produces in order to successfully complete a bankruptcy filing. We guarantee that it will be done in a manner that is accepted for filing with the bankruptcy clerk's office.

There may be reasons beyond our control that may cause a case to be dismissed. Therefore, the 100% Money-Back Guarantee does not guarantee;

  1. That you will receive a discharge.
  2. That you will receive a discharge of all debts or of any particular debt.
  3. That your case won't be dismissed for reasons not related to the paperwork being accepted for filing.
  4. That you, our client, will successfully complete all of your obligations including accurate disclosure of debts, completing your forms on time and attending your 341 meeting as scheduled.
  5. That you will not lose assets in chapter 7, or that creditors won't successfully argue for the repossession of collateral in chapter 13.
  6. That you will not encounter challenges of any kind to your bankruptcy case.

Take advantage of this offer. Get started now by completing your FREE online bankruptcy evaluation, accessible from our home page.

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