Unfortunately, you can’t wish all of your debts away by just saying the words “I declare bankruptcy.” The process is complicated and full of traps for the unwary. If you want to declare bankruptcy in Sacramento, you should read this brief outline of the bankruptcy process from start to finish.

For those that are new to the bankruptcy process, bankruptcy is the legal tool used to alleviate yourself from debt. Most filers have two options when it comes to bankruptcy: Chapter 7, where most debts are discharged, or a Chapter 13, where you pay back part of your debt over time.

You should also know that all bankruptcy is a federal law. Bankruptcy cases are administered by the United States Bankruptcy Court. Even though bankruptcy is a function of federal law, each state has its own rules as to how many assets you can declare as exempt, and thus keep during the course of your bankruptcy. Exempting assets is a critical part of preparing for filing.

In order to file for bankruptcy, you will need to create and file a bankruptcy petition. On the petition, you will include information about your financial situation, including monthly income, expenses, assets, debts and creditors. The petition will tell the court exactly where you stand financially. You will also be required to take two credit-counseling classes, one before and one after you file. These classes are designed to help you understand credit, budgeting and more so that you do not find yourself in the same situation again.

Once the petition is filed, you will officially be “in bankruptcy.” You will be assigned a case number and a a bankruptcy trustee. Your creditors will also be notified by the court. If you are filing bankruptcy to stop an imminent wage garnishment, bank levy, or foreclosure, you should send those creditors an official notice of bankruptcy as soon as possible.

Between when you file your bankruptcy case and when you get your bankruptcy discharge, there is one court appearance that is typically required. This is called a “meeting of creditors.” Your bankruptcy trustee will be asking you basic questions about your case to ensure that you are playing by the rules. Your creditors will also be given an opportunity to ask questions about your financial affairs — but in the vast majority of cases, no creditors actually appear.

Assuming there are no complications in your Chapter 7 case, your bankruptcy can be over in as soon as 90 days. Chapter 13s are much more complicated and typically last three to five years. In either case, you can obtain amazing results and move on with your life with a fresh start.

Bankruptcy is a serious financial decision. However, it is the most efficient way to become debt-free. I can help you get a fresh start with your finances. Please call my office at (916) 333-2222 to get started.

You might have recently heard that the United States Supreme Court recently ruled that states may not prohibit same sex couples from marrying. Along with a decision a few years ago striking down the Defense of Marriage Act (DOMA), these two decisions have an important impact on bankruptcy law as it relates to same sex couples. Who would have thought that same-sex marriage & bankruptcy would be connected?

Marriage offers multiple financial benefits when it comes to retirement, taxes, and social security. However, bad credit and debt can easily strain any relationship and wreck havoc on a marriage. Additionally, under California community property law, debts obtained during marriage belong to both spouses, even if only one spouse officially applied for the debt.

In the past, the federal government did not recognize same-sex marriages, so couples could not file joint federal tax returns or bankruptcy cases. However, this changed two years ago when the US Supreme Court ruled on United States v. Windsor. This case effectively struck down the federal DOMA. This decision cleared the way for same-sex married couples to enjoy the same federal benefits as other married couples – including the right to file joint bankruptcy petitions.

There are several benefits that couples could miss out on by not jointly declaring bankruptcy together. By filing a joint petition, couples can efficiently list all there debts together, whether those debts are in both names or not. It is also less expensive to file together. Attorneys generally charge less for one married petition than for two individual, not to mention the court costs. Couples can also take the credit counseling classes together. They will then also receive their joint discharge at the same time, making the entire process easier for everyone.

The bottom line is that same sex couples may file joint bankruptcy petitions as long as they are legally married.