Real Bankruptcy Help for Yuba City Residents
If you are contemplating filing for bankruptcy, then you have come to the right place. At The Law Office of Nikki Farris, our Yuba City bankruptcy lawyers have been helping the residents of Yuba City and all throughout Butte County file for bankruptcy protection for two generations. We understand that filing for bankruptcy is a large decision to make and one that hinges upon doing what’s best for you and your family. Because of this, we are here to provide you with all the information you need about bankruptcy and the alternatives to bankruptcy, that way you can feel confident that whatever decision you make is an informed one.
The Law Office of Nikki Farris is here to help you move forward from debt. Contact us today to learn how we will guide you through the bankruptcy process.
There are two main types of bankruptcies that are filed by the consumer and they are Chapter 7 and Chapter 13. The Chapter 7 bankruptcy is a debt liquidation bankruptcy; this means that a significant amount of one’s debts are discharged through the bankruptcy. These would include unsecured debts such as credit cards, medical bills, personal loans, past-due utility bills and taxes of a certain age (over 3 years). What cannot be included in a Chapter 7 bankruptcy is student loans, child support, spousal support/alimony, victim restitution, court ordered fines and recent taxes. Discharging your debt through bankruptcy can give you peace of mind and the breathing room you need to focus on true credit restoration.
The Chapter 13 bankruptcy is also called the “debt reorganization” bankruptcy. With a Chapter 13 bankruptcy you are put on a repayment plan where you pay off your debts over a period of 3 to 5 years. This bankruptcy is either reserved for someone who doesn’t qualify for a Chapter 7, or someone who wishes to save their home from foreclosure or for someone who wants to pay their debts back for personal reasons. Those who don’t qualify for a Chapter 7 but instead qualify for a Chapter 13 typically do so because they have a sizeable and steady flow of monthly income.
With a Chapter 13 bankruptcy, you don’t necessarily pay off 100% of your obligations. How much you pay all comes down to how much you can afford to repay. It’s important that with a Chapter 13 repayment plan your payments are set at an amount that you can comfortably afford each month, otherwise filing for bankruptcy would defeat the whole purpose.
The Bankruptcy Means Test
In order to qualify for a Chapter 7 bankruptcy you must first take the bankruptcy means test. This is a simple test that compares the size of your household and your income with the median income of the state of California. If your income falls below the median income for a household of your size, then you automatically qualify. If your income exceeds the income qualifications for the state of California, then you will be diverted to filing a Chapter 13 debt reorganization bankruptcy instead.
People have a lot of questions about what bankruptcy can and can’t do, and we are here to answer them for you. First off, once you file for bankruptcy you can immediately enjoy the benefits of the “automatic stay,” which prohibits debt collectors from contacting you by phone, mail, or any other means. This means the phone will stop ringing and those upsetting collection letters will stop coming in the mail. If a creditor fails to abide by the law or if you become a victim of creditor harassment, you may have legal recourse against the creditor that is in violation of the law.
The automatic stay is in effect until your bankruptcy is discharged. This means bankruptcy can act as a powerful foreclosure defense and it can put a stop to repossessions and wage garnishments. During the period of the automatic stay you can actually keep the money from your paycheck as you figure out what your next best plan of action is.
Alternatives to Bankruptcy
Bankruptcy is not for everyone, and for those of you who wish to examine your alternatives to bankruptcy, we are here to help. Whether you need assistance with collections defense or if you want to learn about your options for stopping foreclosure, we are here to give you the information you need to proceed forward with confidence.
Some options for stopping foreclosure proceedings include a loan modification, a deed in lieu of foreclosure or a short sale. After learning all about your options, you may find the one that suits you the best, or you may realize that bankruptcy is your most viable alternative. Either way, we are here to arm you with the information and legal guidance you need to find the most reasonable and workable solution for your financial problems.
Yuba City Bankruptcy Lawyer
We also provide debt consolidation, debt counseling, debt settlement and debt negotiation services to those who need it. With several years’ experience in the field of bankruptcy law, we are confident that we can help you gain a sense of control over your situation once and for all, that way you can finally look forward to a brighter, more promising financial future.
Contact a member of our legal team to learn about your financial options!