Sacramento Bankruptcy Attorney serving Rancho Cordova further explains bankruptcy information posted online by the U.S. Bankrutpcy Court

Before you contact a bankruptcy attorney, you probably want to know what’s posted online by the government regarding this common question:

Which type of bankruptcy should I file?  Chapter 7 (discharge of debts) or
Chapter 13 (affordable payment plan);

And here’s the full text of the answer, as it appears on the Bankruptcy Information Sheet posted by the U.S. Trustee Program/Dept. of Justice.  The links in green are to our website which provide further details and answers to your bankruptcy FAQ.

You can choose the kind of bankruptcy that best meets your needs (provided you meet certain qualifications):

Chapter 7 – A trustee is appointed to take over your property. Any property of value will be sold or turned into money to pay your creditors. You may be able to keep some personal items and possibly real estate depending on the law of the State where you live and applicable federal laws.

Chapter 13 – You can usually keep your property, but you must earn wages or have some other source of regular income and you must agree to pay part of your income to your creditors. The court must approve your repayment plan and your budget. A trustee is appointed and will collect the payments from you, pay your creditors, and make sure you live up to the terms of your repayment plan.

If you have already filed bankruptcy under chapter 7, you may be able to change your case to another chapter.

In summary, It’s up to you, the person filing for bankruptcy, to evaluate and choose the kind of bankruptcy that best meets your needs (and find out if you qualify for that bankruptcy option)

The information from Bankruptcy Information Sheet posted by the U.S. Trustee Program/Dept. of Justice also points out:

“IF YOU WANT MORE INFORMATION OR HAVE ANY QUESTIONS ABOUT HOW THE BANKRUPTCY LAWS AFFECT YOU, YOU MAY NEED LEGAL ADVICE. THE TRUSTEE IN YOUR CASE IS NOT RESPONSIBLE FOR GIVING YOU LEGAL ADVICE.”

Contact a Bankruptcy Lawyer from the Sacramento area at 916-580-7273 to learn about how we can help you.