Frequently Asked Questions

You will still testify at the meeting of creditors, yes. However, the local Federal Bankruptcy Court moved the hearings to telephonic hearings rather than in-person hearings once the COVID-19 Pandemic outbreak occurred. You will be provided a phone number to call for the hearing and a specific passcode to enter. You will then be connected to the live-conference line for your hearing.

Absolutely! By filing for bankruptcy relief, an Automatic Stay is initiated. This occurs the moment a bankruptcy case is filed. Once that occurs, creditors are unable to do certain things, one of those things being move forward with a foreclosure. The best way to do this is by filing for Chapter 13 Bankruptcy.

Yes, you can absolutely file Bankruptcy without having your spouse file with you. We would still possibly need to review your spouse’s income and assets but they are under no requirement to actually file Bankruptcy with you.

No. As an attorney, we cannot make that guarantee. Our job is to understand the facts of your personal situation, analyze that with the rules set forth in Bankruptcy Law, make advise you on what we feel is likely to happen if you file for Bankruptcy. Thus, it is extremely important to be 100% truthful to your attorney because if your attorney does not know all of the facts, he or she cannot properly advise you.

Whether you file for Chapter 7 or Chapter 13, you will be required to attend a Meeting of Creditors pursuant to 11 U.S.C. § 341.  It’s not a court hearing but it does take place at the Federal Courthouse. Also, it will not be in front of a Judge but rather in front of a Trustee.

For a Chapter 7 filing, generally speaking, that is the only hearing you and your attorney will need to appear at. In a Chapter 13, however, your attorney will likely need to attend actual court hearings in front of the Judge.  In most cases, your attorney can attend those court hearings on your behalf and you will not need to be present at them.

The answer to this is very case specific. To determine whether a person qualifies for a Chapter 7 Bankruptcy, you must complete the Means Test. In the Means Test, you will be plugging in your income for the prior 6 months. You will also be accounting for certain deductions the Court allows for. You will then be making a comparison to the median income for your specific household size. If you are left with a certain disposable income, you would not qualify for a Chapter 7 and would need to consider Chapter 13. If you have no disposable income after the conclusion of the Means Test, you do in fact qualify for Chapter 7.

Absolutely not. What the above question lays out is exactly what the courts are trying to avoid---having debtors hide assets when filing for bankruptcy. If you do this, the Trustee has the power to reverse that transaction and possibly liquidate that asset for the benefit of creditors. Moreover, if the Trustee can prove that you intended to defraud the creditors, the Court can deny your discharge altogether. Call our office at 916-800-7690 to schedule your FREE consultation with an experienced Bankruptcy attorney right away.

Unfortunately not. When you file for bankruptcy, you are required by law to list everyone you owe money to. That means regardless of whether you want to keep a certain credit card or not, you must list it when you file for bankruptcy.

Actually, that is incorrect. When filing for Bankruptcy, the Court requires the debtor to disclose their complete household income.  That means even if one spouse is not filing for Bankruptcy, as long as they are living together as a married couple, we will have to see the non-filing spouse’s income as well.

It actually will. What the court sees that as is a preferential payment and what the Trustee could do is get the $3,000.00 back from your dad and split it evenly among your other creditors.  The reason for this is because the court wants all of the unsecured creditors to be treated equally, be it your dad or be it a credit card. Schedule a FREE no-hassle consultation with our high quality Sacramento Bankruptcy Lawyer right away to speak about your particular case.

If you previously filed a Chapter 7, you must wait 8 years to file another Chapter 7 or 4 years to file a Chapter 13 (from filing date to filing date). If you previously had filed a Chapter 13, you must wait 2 years to file another Chapter 13 or 6 years to file a Chapter 7 (from filing date to filing date).

When you file for bankruptcy relief, you do not get to choose what you include as a debt and not include. Everything must be included. However, that doesn’t mean you will lose your house or car. In a Chapter 7, you will need to evaluate how much equity is in said assets and whether you can exempt them. Furthermore, you’d still need to be able to afford the monthly payments moving forward. In a Chapter 13, it will boil down to whether you can afford the court administered Chapter 13 Plan payments and abide by the rules of the Court. If so, then yes, you will be able to keep the assets.

Now that you have been sued, your time is running out and you need to act quickly. Below you will find a small list of some common options you have when being sued for a delinquent credit card:

  • Do nothing. After your 30-day window runs out, the creditor will most likely request the Court enter a Default Judgment against you. That Judgment essentially means that they filed a lawsuit against you, served you that lawsuit, and you did not respond within the 30-day time period. Once the Default Judgment is entered, they will now try to collect that money from you by most likely garnishing your wages or levying your bank account.
  • Pay the balance in full.
  • Contact the creditor and attempt to settle the account for less than the full balance.
  • File an answer in Civil Court in response to that lawsuit. This will generally require a filing fee and it is recommended that you hire a Civil Attorney to do this. In most cases, this will just extend the case out and now you will have to fight with the creditor in Civil Court in regards to that lawsuit.
  • File a Bankruptcy. This will essentially make the lawsuit against you moot. Our office will immediately send notice of the Bankruptcy to the creditor suing you and they will generally dismiss the Civil Case against you. Once your Bankruptcy is complete and you have received your discharge, you will have eliminated your obligation to pay that debt to the creditor.

Filing for Bankruptcy is an excellent way to save your car from being repossessed. Once the Bankruptcy is filed, the automatic stay pursuant to 11 U.S.C. § 362 is initiated and the lender is not allowed to repossess your car. If you are looking to buy some time to either purchase a different car or to quickly catch up on the missed payments and keep the car, Chapter 7 is what you need to consider. However, if you want to save the car by restructuring the loan into a 3-5 year payment plan and slowly pay back the loan, Chapter 13 is your answer.

When a person files a bankruptcy case, they are required to disclose all of their assets (i.e. House, car, bank accounts, retirement accounts, furniture, clothes, boats, etc.) in their filing. A Chapter 13 Bankruptcy involves entering into a Court Administered Repayment Plan and because of this, the Court will not take any of your assets upon the filing. However, it is possible to lose some assets in a Chapter 7 case, which is known as a Liquidation Chapter.

In the majority of cases, our office can protect all of a person’s assets and restrict the Court from taking and liquidating them. For example, we can protect up to $600,000.00 of equity in your primary residence. Once protected, the Court has no authority to take such items. If, however, an item is unprotected, that specific item would be at risk of being taken.

By receiving your Discharge through Bankruptcy, your personal obligation on your mortgage debt in fact been eliminated. However, the important thing to keep in mind is that the actual lien is still present and valid. Thus, even though you do not legally owe the mortgage company any money, they still have a lien on your home. This means, in essence, that as long as you want to keep your home, you should still make the monthly payments after receiving a Bankruptcy Discharge.

The Means Test is the test used to determine if your income is low enough to file for Chapter 7 relief. The formula that Congress created is to keep higher income earners from filing for Chapter 7. If you fail the Means Test, that means you are ineligible to file a Chapter 7. If you still need to file for Bankruptcy relief, you would be required to file a Chapter 13 and enter into a 3-5 year repayment plan for some of your debts.

How the Means Test works is in two stages. The 1st stage is when we look at the past 6 months of your household income and compare it to the median income for your particular household size in your particular state. If your monthly income based on the past 6 months is lower than that of the median income for your particular household size, you pass the Means Test and you are eligible for a Chapter 7 based on your income.  If, however, your income is above the median income for your household size, you must move forward to the 2nd stage.

Stage 2 is where you will deduct certain allowed expenses (i.e. mortgage payment, car payment, etc.) from your gross income to determine your disposable income. If you are left with enough disposable income to pay back certain debts (i.e. credit cards), you are again ineligible for a Chapter 7 and will need to consider a Chapter 13. The amount that is left over will help determine what your Chapter 13 plan payment would be. If you are not left with any disposable income after deducting the allowed amounts, you pass the means test and are eligible to file for Chapter 7.

For your primary residence, you are now able to protect a minimum of $300,000.00 equity in your primary residence and a maximum of $600,000.00.

Although filing for Bankruptcy and receiving a discharge will eliminate most of your debts, there are debts that will survive the bankruptcy and you will still owe these debts after your Bankruptcy is complete. These debts are considered non-dischargeable debts. The most common types of non-dischargeable debts are certain tax claims, student loans, child and alimony support, debts to governmental units for fines and penalties, and debts obtained by fraud. The Bankruptcy Code that governs non-dischargeable debts is 11 U.S.C. § 523.

The simple answer is No. There are rare circumstances wherein through an Adversary Proceeding inside of Bankruptcy case, you can attempt to discharge your student loan debt. But the common answer is that your student loan debt will survive and you will still be obligated to pay on it.

Free Consultation

Here at Sacramento Bankruptcy Lawyer, we set ourselves apart from other firms because we provide direct client to attorney contact from the initial consultation all the way through the discharge in your particular case. We will not pawn your case off to a staff member at any point through the process. When you call Sacramento Bankruptcy Lawyer, you WILL speak with local Sacramento Bankruptcy Lawyer Pauldeep Bains. Please call Sacramento Bankruptcy Lawyer ASAP at 916-800-7690 to schedule your FREE in-person or phone consultation with Pauldeep Bains and let Sacramento Bankruptcy Lawyer begin getting you the fresh start that you deserve.




Contact Us

Do not let another day go by without knowing your legal options. Contact Sacramento Bankruptcy Attorney today and you will hear from our highly qualified and knowledgeable attorney who looks forward to speaking with you at your earliest convenience.

Do not let another day go by without knowing your legal options. Contact Sacramento Bankruptcy Attorney today and you will hear from our highly qualified and knowledgeable attorney who looks forward to speaking with you at your earliest convenience.