Sacramento bankruptcy lawyer

Mark Shmorgon

Bankruptcy Attorney

Filing for bankruptcy in Sacramento can seem like a difficult process. However, understanding how bankruptcy works and the different types of bankruptcies can help ease some of the burden and stress of initiating the process. Take a few minutes to learn the different chapters of bankruptcy and see which one would best suit your situation. Or you can call us at (916) 640-7599 to learn more.

Mark Shmorgon

Bankruptcy Attorney

The majority of all consumer bankruptcy filings are for Chapter 7. For those in dire financial straits, Chapter 7 provides a means for a fresh start. Chapter 7 is oftentimes referred to as liquidation because debtors are required to sell their non-exempt resources and distribute the proceeds to creditors. While the prospect of liquidating your property is indeed troubling, the key here is that debtors are only required to sell non-exempt resources. In many instances this means that debtors can file for Chapter 7 without losing any assets. Gaining a better understanding of Chapter 7 bankruptcy will help you determine whether it is suitable for your circumstances.

Mark Shmorgon

Bankruptcy Attorney

Chapter 13 differs from Chapter 7 bankruptcy because the debtor actually repays some or all of the debt. This is accomplished using a Chapter 13 restructuring plan which provides debtors with better terms such as lower interest. Because restructuring debt involves repayment instead of discharge of debt, debtors who utilize Chapter 13 must have a regular income. Debtors work with their attorney to determine how much of their future income they can use for repayment of debt.