Through no fault of their own, many Americans have fallen upon hard times and need the services of an expert Sacramento bankruptcy attorney.

Creditors want you to feel stressed and despite what they say, they are happy to see you unable to make ends meet. They want you to pay every nickel and dime of your debt before you pay your bills and groceries, because their purpose is to increase the bottom line for the debt they have purchased.

We at Attorney Debt Reset are here to help you with the best Sacramento bankruptcy attorney professionals in the industry. We not only know the law well, but we have a passion for fighting for the little guy. When you come to us for a Sacramento bankruptcy attorney, we can make it easy for you to become completely debt free. We are not just interested in helping people file for bankruptcy, but we aim to explain all the options available to you, such as debt settlement, debt consolidation, foreclosure mediation with a foreclosure attorney, tax settlement and finally bankruptcy or a combination of the above.

Do not let creditors push you around!

Creditors, debt collectors and even the IRS must follow the law. The Constitution of the country enshrines that our Sacramento bankruptcy attorney professionals are able to stand up for you and fight your fight to avoid foreclosure or repossession. We can help you stop IRS seizures by providing a skilled tax attorney, wage garnishments as well as bank levies.

Many creditors often unlawfully harass their targets — and our Sacramento bankruptcy attorney firm is there to assist you in receiving freedom and in many cases thousands of dollars in damages for their unlawful behavior. The expert Sacramento bankruptcy attorneyprofessionals that work for you will be able to stop the harassment and show you how to identify if you are being harassed in the first place.

There are many ways that creditors can be harassing you, and a good Sacramento bankruptcy attorneywill be able to point these out to you. If you have experienced collectors making repeated calls, using false names, profanities, calling neighbors, friends or other people, a loss of job or threats of legal action and arrest then you are probably the victim of some form of harassment.

There is always hope for bankruptcy in Sacramento, CA

With the help of Attorney Debt Reset, you can start all over again. Whether you contact us for a Sacramento bankruptcy attorneyto file a Chapter 7 (which discharges everything you owe) or a Chapter 13 (which is designed to let you pay back part of your debt over a period of 3-5 years), we can set you up for a fresh start and a new beginning. We really do understand what you are going through and we are here to help.

If you take on the services of our Sacramento bankruptcy firm, we will be committed to helping you build a better future for everyone around you. But to do this you must take action today!

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Please contact one of our expert Sacramento bankruptcy attorney professionals for a free evaluation of your situation on (916) 446-1791 or complete the online contact form.

Chapter 11 affords the debtor in possession a number of different mechanisms to restructure its business, which is why we Riverside bankruptcy attorneys receive so many inquiries about Chapter 11. A debtor in possession can acquire financing and loans with more favorable terms by giving new lenders first priority on the business’ earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of what is called an “automatic stay”.  While the automatic stay is in place, most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue.  If the business’s debts exceed its assets, the bankruptcy restructuring results in the company’s owners being left with nothing; instead, the owners’ rights and interests are ended and the company’s creditors are left with ownership of the newly reorganized company.

One of the reasons why so many people find Chapter 11 favorable to Chapter 7 liquidation is because it doesn’t let them walk away.  People want to pay down their debts.  They don’t want to lose their business.  They want to get back on track, but just need a little breathing room to do so.  This is where a Riverside bankruptcy lawyer like myself comes in.  We assist the small to mid-sized business owners with their debt restructuring plans.  We work through the courts to make it possible for them to reboot their business in a healthy way that is poised for financial success.  This is why we do what we do, because we want to see something positive come out of a negative.  I have friends who are criminal lawyers and I don’t know how they go home each night and sleep.  You want to be successful at promoting something good and productive.

When I assist in cases of Chapter 11 or Chapter 13, I feel good that I’ve helped someone get a second chance to do it better.  If you have any additional questions regarding Chapter 11, please give us a call.  And that’s the final word from this Riverside bankruptcy lawyer.

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As a Sacramento bankruptcy attorney I will read reports like the one Equifax produced on bankruptcy trends in Orange County and speculate about what their findings will mean over the coming year.  Equifax reported (story was covered by Jan Norman of the Orange County Register on August 25^th) that small business bankruptcy filings were up 110.3% since 2008 in Orange County putting the county in the #6 spot for small business bankruptcies in the first half of 2011.  The Sacramento and Riverside regions (areas my practice serves) both saw a decline in bankruptcy filings for the first half of this year, only to turn and slowly climb back up in the last few months.

I know that as a Sacramento bankruptcy lawyer I’ve handled my fair share of Chapter 7 and Chapter 11 cases in Sacramento these past two years, and I understand by speaking with the proprietors why it is that they’ve been forced to file.  “Lack of business”, is what is usually cited.  Given that the stock market continues to plunge, the US credit rating was downgraded, there is no real plan for jobs that would affect anyone aside from large corporations (as usual), and even the US Postal Service is going into default soon…well, I can’t say that I would predict a rosier future for Sacramento or Riverside anytime soon.

People aren’t spending, and they’re not going to be spending money anytime soon with the job market being what it is.  Most everyone is looking at their battered 401K and wondering why they bothered not just throwing the money into savings accounts, and those that have extra are doing just that.  This Sacramento bankruptcy attorney predicts a rise in both Chapter 7 and Chapter 13 in the next year and a half unless Congress and the President do something crazy like enact pre-WWII tariffs and/or give enormous tax breaks to businesses that hire one or more employees.

I see another storm coming on the horizon and my advice to everyone is to batten down the hatches, begin saving, and diversify your finances.  I know one family where everyone had 2 part-time jobs in case they lost one they would still have a job to support them temporarily.  While I certainly don’t want to be the voice of gloom and doom, I do want to help people in my community prepare for the worst.  Here in California we get earthquakes, mudslides, and wildfires.  Many of us try to prepare for them, financial disasters should be no different.

If your business is looking shaking, start thinking now about Chapter 11 reorganization—just to be prepared.  It is possible that you can keep your business afloat until better times.  Chapter 11 is a reorganizational plan for success, and a far better option than Chapter 7 liquidation.  If you would like more information on the subject by all means give me a call.  And that’s the opinion of this Sacramento bankruptcy attorney.

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This is a question that we Riverside bankruptcy attorneys get quite often: how will filing for bankruptcy affect the ability for someone to get credit in the future?  While I certainly don’t want to seem like I’m minimizing what people are going through, if you are in a position where you need to file for bankruptcy your credit score is probably already as low as it can go.

However, to answer the question fully, Chapter 13 will immediately be listed on your credit report.  It is a matter of public record and all financial public records are attached to your credit report.  It will have an impact on your credit score, but it is not the greatest factor at play.  Truthfully, your amount of available credit is the largest percentage of your score.  The next big factor is recent payment history.  Considering that many credit card companies will offer you lines of credit the moment you file for bankruptcy (it’s a safe bet for them since you cannot file again for two years), you can raise your credit score from the moment you file bankruptcy.

How you handle debt in the future will have the greatest impact on your credit score—more so than bankruptcy.  Bankruptcy is no different than any other item on your credit report.  All negative information will remain on your credit report for seven years.  The goal is to responsibly build credit again, first, using secured credit cards, and second, repaying the debts according to the court’s mandates.  I would have said debt repayment first, but that will take 3-5 years under the court dictated plan so this Riverside bankruptcy lawyer would advise you to start with a secured card so that you can prove your ability to manage credit.

Right now, if you are overwhelmed with debt, making late payments, and in foreclosure your credit score probably can’t get any worse.  That is the harsh truth.  Filing for bankruptcy will enable you to begin to immediately rebuild.  You will be making house payments on time, car payments on time, and if you get a secured credit card, you will have available credit at your disposal.  This is an immediate improvement to the credit score, so even if there is bankruptcy on your credit report there will be enough positive factors to counter, factors not at your disposal now, that you will be back to where you need to be within a few years.  As a Riverside bankruptcy lawyer I see this every day.  I will hear from clients a year to year and a half later telling me how amazed they were to see their credit score no longer in the gutter.

There are ways to rebuild credit and to mitigate “black marks” on your credit report even if you’ve filed for Chapter 13.

Your credit score is hurt worse by defaults, late payments, and zero available credit than if you file for bankruptcy.  And that is the simple truth of the matter according to this Riverside bankruptcy attorney.

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This Sacramento bankruptcy attorneycan tell you a great deal about how bankruptcy can prevent civil lawsuits, judgments, and liens.

When you filed for bankruptcy (Chapter 7, Chapter 11, or Chapter 13), the courts issue what is called an “automatic stay”.  This prohibits creditors from either filing lawsuits against you or continuing lawsuits that they may have already instigated.  All efforts to collect on debts will cease for the period of the filing.  In the case of Chapter 13, for example, this could be 3-5 years.  Many creditors are getting sneaky about how they file suit against you, and I’ve found that many of the people who contact me after a judgment has been placed never even knew there was a court date or a suit filed against them.  If this has happened to you, it is possible that 25% of your wage has been garnished to repay the debt.  If this has happened to you, it is also possible that you can file for bankruptcy and invalidate the garnishment under Federal bankruptcy protections.

As a Sacramento bankruptcy lawyer my job is to help people become free of debt so that they can start living again and contributing to the economy in productive, healthy ways.  I’ve seen how these companies operate, and I am always glad when their behavior doesn’t pay off for them.  Kicking someone while they’re down is never fair.  This notion that people who can’t pay their bills are somehow thieves or con artists is how they manage to get away with being as cruel as possible in their collection efforts.  You can’t pay, so you deserve everything that comes to you.  Nothing is that black and white, least of all finances anymore.  Most people try to pay their bills, attempt to work with their mortgage companies and lenders, and do try to negotiate prior to defaults.  We Sacramento bankruptcy attorneys share horror stories of how these creditors not only refuse to budget but choose to clamp down harder.  It’s really downright awful.

If you are under a wage garnishment or have a lien against your bank account, one way to get around this is by filing for bankruptcy.  Bankruptcy forces an automatic stay and puts the case back into the hands of the courts—this time a Federal court system with specific guidelines that were put into place to help you instead of them.  If you are in this position and would like to learn more about bankruptcy protections give us a call.  We’d be more than happy to review your case with you and discuss your options for how to deal with creditors and collections efforts.

And that’s the scoop from your Sacramento bankruptcy attorney!

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If we were out to become fabulously wealthy we would probably go into a practice area like corporate law or even criminal defense. Defending White Collar crimes can be very lucrative, after all. No, most of us go into this practice area because we have a thirst for social justice and see debt relief as one way of balancing the scales, of seeking true justice for everyone. When we help families save their home using Chapter 13 or their small business using Chapter 11 protections most of us go home at night feeling pretty darn good about ourselves. So if you are in a financial bind with creditors banging down your door or you are at risk of losing your home to a mortgage company who took the bailout that your taxes paid for and refused to extend you the same financial courtesy the US government gave to them then give this Riverside bankruptcy lawyer so I can help explain that:

• Chapter 13 can stall a home foreclosure and force the mortgage company to modify your mortgage into something affordable
• Chapter 13 forces an automatic stay of collection efforts
• Chapter 13 gives you 3-5 years to pay back your debts, and those that cannot be paid back in 3-5 years are discharged
• Chapter 13 can protect your car from repossession
• Chapter 13 can help you consolidate all of your loans, unsecured debts, and back payments on secured debts into an interest-free, affordable payment made to the court
• Chapter 13 allows you to immediately rebuild credit after discharge of debt because banks and lenders view it very differently than Chapter 7.

As a Riverside bankruptcy lawyer I see a lot of bankruptcy cases. I see the immediate relief that comes from just knowing there will be no more collection calls, no more harassment, and no more fears of losing your home or car. I get to work with families who are struggling to just keep the lights on and feed their children, people who didn’t spend outside their means until their means changed due to multiple job loss, long-term unemployment, and/or exorbitant medical bills. When they needed help the most, the got kicked in the gut. I’m proud to represent my clients and help them get the fair treatment they deserve.

If you are suffering the effects of high debt and unfriendly lenders, give me a call. I promise you fair and compassionate treatment and a helping hand out of debt.

You will always find a friend in this Riverside bankruptcy attorney.

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As a Sacramento bankruptcy lawyer I am often asked about the various types of bankruptcy and which type I feel is “best”.

The fact is that whichever type ends up meeting my client’s needs is the “best”, but in a general sort of way I would say that Chapter 13 has more benefits than Chapter 7.  True, Chapter 7 allows you to walk away from your debts, but it is a total liquidation.  You keep nothing and is on your credit report longer than Chapter 13 or Chapter 11.  Not that this should deter someone who really needs to file for Chapter 7.  It certainly has its place and it actually doesn’t destroy your credit the way that many people believe it does.  In fact, you can get credit right away.  Why I prefer Chapter 13 is for the following reasons:

• You can keep your possessions.  Chapter 13 is a debt restructuring so it enables you to keep your car, your house, etc.
• It forces creditors to the table and agree to fair terms.
• It doesn’t stay on your credit report as long as Chapter 7.
• The courts generally issue terms that you can live with and put away money for savings—hence giving you a fresh start without having to use a “nuclear” option.
• Anything that is not paid off in 3-5 years is discharged.

This Sacramento bankruptcy attorney loves Chapter 13 because it allows people to pay back their debts—which most people actually want to do—just at terms that are reasonable and fair.  Their lives do not become unsettled with moving, readjusting, etc.  They keep their home, their cars, and their pride.

The downsides are, of course, that the debts are not entirely discharged and the entire process takes much longer than Chapter 7.  However, there is still an automatic stay on collections, foreclosure, and other harassments the moment that you file for Chapter 13.  Moreover, should the terms of Chapter 13 not meet the needs of the individual it can be dismissed and Chapter 7 proceedings filed.  My personal experience with Chapter 13 as a Sacramento bankruptcy lawyer is that judges understand what people are able to do and what they are not.  Very seldom (if at all since I cannot remember any occasions off the top of my head) are my clients met with terms that they cannot ably meet.

If you are afraid of foreclosure, if you are in way over your head with debt due to job loss or medical bills, please come see me.  I can help.  We can work with creditors or pursue bankruptcy options if that is your wish.  Don’t lose another night’s sleep over debt.

And that’s the conclusion to the latest blog from your humble Sacramento bankruptcy attorney!

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As a Riverside bankruptcy attorney part of my job is educating the public on what bankruptcy is, as well as, what it isn’t.

And it isn’t a haven for slackers, bums, and other negative stereotypes that have been perpetuated by the media. If you listened to certain news networks you might actually believe that there is a type of person who files for bankruptcy.

This Riverside bankruptcy lawyer can tell you otherwise. Here is a short (and possibly surprising list of famous and beloved Americans who were in debt or filed for bankruptcy):

• Thomas Jefferson, quite possibly America’s greatest mind, died deeply in debt and yet look at his contributions to the birth of America. Had his financial situation precluded him from respect we might not have had a break from England or be the owners of the mid-western half of this country. All of the pundits who seem to take issue with individuals who were “unprepared”, “didn’t save enough”, or took out sub-prime mortgages tend to quote Mr. Jefferson whenever it suits them. I wonder if they would have scolded this Founding Father for not being frugal enough up no his mountaintop paradise, Monticello. I’ll tell you this, I don’t know of any Riverside bankruptcy attorneys who would turn down HIS case.
• Walt Disney is responsible for creating an unstoppable business empire that to this day delights the hearts of children across the globe. But before he became a household name he field for bankruptcy in 1923 when investors pulled out of his first company: Laugh-O-Gram.
• Ulysses S Grant was the Union War General responsible for forcing the tactically superior Robert E Lee to a truce at Appomattox, doing what no other Union General had managed to accomplish in six long years. For this victory he became the 18th President of the United States. He also went bankrupt due to a poor decision regarding a financial firm that he partnered.
• Milton Snavely Hershey—yes, of Hershey chocolates. Prior to becoming the originator of a chocolate empire he ran up serious debts forcing him to file for bankruptcy. This Riverside bankruptcy lawyer is glad that he didn’t let that financial defeat stop him or else my childhood would have gone without the pleasure of Hershey Kisses.

So you can see that bankruptcy has no “type”. If you find yourself so deeply in debt that you are considering bankruptcy then know this: you are someone who fell on hard times—no differently than Ulysses S. Grant or Thomas Jefferson. You can also pick yourself up and do great things with your life should you take the opportunity that bankruptcy affords you. If you are in poor financial shape why should you deny yourself the same fresh start that Walt Disney took before building his financial empire? Let this Riverside bankruptcy attorney help you find your path out of financial difficulties and onto bigger and better things!

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A question asked of many bankruptcy attorneys in Sacramento by business owners is that of which chapter of bankruptcy is preferable for their particular financial situation.

Chapter 7 is typically used by companies that are so far in debt that even a reorganization could not assist in recovery—or someone who has stopped caring about a possible recovery, while Chapter 11 is used by companies who feel like they could become profitable again someday with a court-structured reorganization. Note: Chapter 11 can also be used by individuals, but we’ll cover that in another blog post. Chapter 7 is considered to be a total liquidation bankruptcy. All un-exempt assets must be sold off to pay creditors. Creditors may only collect in the order of priority—meaning “first come, first serve”, or “absolute priority”. A court appointed trustee will ensure that all assets are sold and that creditors are paid in the order of absolute priority. I’ve found as a practicing Sacramento bankruptcy lawyer that even the threat of Chapter 7 is enough to make many creditors more amiable and reasonable with debt negotiations as it is quite possibly that they could get absolutely nothing out of Chapter 7 liquidation. Chapter 11 is used by companies who believe that a reorganization of debts and company restructuring could return their entity to a profitable operating enterprise. This form of bankruptcy is often referred to as “rehabilitation bankruptcy”. It is clearly a more onerous and lengthy process than Chapter 7. In this case there is no liquidation of assets, just a restructuring of debt under the aegis of the courts. The trustee in this case supervises the process and redistributes the debtor’s assets under the guidance of the court. The business will continue on before in accordance with the plan submitted and creditors will be repaid from future earnings of the company. This form of bankruptcy is also used even when a business is not entirely underwater as a form of asset protection of business owners as it “freezes” any debt collection or potential legal disputes until after the case is out of Chapter 11. Your Sacramento bankruptcy lawyer can explain in more detail, but that is pretty much a general overview of the two forms of bankruptcy that businesses can use when they are overloaded by debt. I personally look at my clients financial records and weigh their desires against the facts prior to making any recommendation. As I stated earlier there are some clients of mine who could justify a Chapter 11 but just are too overtaxed to want to keep the business going and choose the route of Chapter 7 bankruptcy liquidation. It takes a lot to keep a business afloat in these times, and speculations about what a business could do in the midst of economic financial uncertainty certainly makes the decisions a business owner must make that much harder. So if you are considering bankruptcy as a means of debt relief come and talk to me. I promise to work with you to better understand “why” you wish to file and help you choose the right approach for your situation—financial and emotional.

And that’s a promise from this Sacramento bankruptcy attorney to you.

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Many of the bankruptcy lawyers in Riverside County work with loan modification companies or will provide modification advocacy services because there is a client demand for modification assistance.

I tend to sit the fence on the issue. I’ve said previously that I don’t believe in pressuring clients to do anything they don’t want to do, but I’m not entirely certain that the modification process is always a good thing. For one, you are still getting your credit hit for late payments since it is not a “full” payment—at least during the trial period. It also does nothing for the other bills you must pay. My personal opinion is that Chapter 13 has the potential to do a lot more for you than a simple modification could. Here’s why:

• It forces all of the creditors to the table for a third party arbitration that they must accept
• It provides a fair payment plan that includes your right to eat food, buy gas, and pay for your electric bill
• It gets you out of debt entirely in 3-5 years

It does not behoove your bank or creditors to give you affordable payments. They don’t care that you have a family. They don’t care that the cost of living has increased, or that you have no way of paying them back. They care that you didn’t pay them. Any “plan” or settlement that they could come up with will be in their best interests, not yours. That is, if they even allow you to come up with a payment plan. As a Riverside bankruptcy lawyer I see people who are in home loan modification programs come to me because the modification did nothing to help their situation and want to file for Chapter 13 because
A judge will look at your bills, what you earn, and the cost of living in your area and decide upon the payment schedule and amount. Anything that cannot be paid off in 3-5 years will be discharged. At the same time, your house does not go into foreclosure, your vehicles aren’t repossessed, and your life gets back to a state of relative sanity. My opinion as a Riverside bankruptcy attorney who’s been at this for a while is that Chapter 13 can do everything that a loan modification can do and more. With Chapter 13 you have a judge set the amount that you pay each month and this does not change. With loan modifications you may see your payments increase exponentially. With Chapter 13 you will have all of your debts reorganized. If you just do a home loan modification you aren’t going to get that—and that’s something most people desperately need. As for the credit report and score—either way you are taking a hit, but at least with Chapter 13 you can have everything tied up in 3 years.

If someone asked me which I would recommend to clients (should they ask) I would suggest Chapter 13 over a loan modification for all of these reasons. And that’s the opinion of this humble Riverside bankruptcy attorney.

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