What Is Bankruptcy

A government approved process to get rid of some debts while keeping some property.

Bankruptcy can get you out of debt quickly. Image of rubber stampped notices Past Due, 2nd Notice, Final Notice, Deliquent.

Bankruptcy is a legal proceeding in which an individual or a company (debtor) that owes more money to others (creditors) than they are able to repay. Bankruptcy allows such individuals to create a plan to either repay the debt overtime, or completely eliminate, discharge, the debt.


Filing bankruptcy immediately stops creditors from calling you, wage attachment, foreclosure, reposession, and any debt collection; at least until your debts are sorted out according to the law


The two primary types of consumer bankruptcy are Chapter 7 and Chapter 13. In Chapter 7, all possible debts are discharged and all possible property is retained. To be able to use Chapter 7 you must pass a means test. In Chapter 13, some or all debts are paid back over time while virtually all property is retained. Chapter 13 is available only if you have income.


All bankruptcy filings and proceedings are under the federal bankruptcy court. The Sacramento Bankruptcy Court serves several northern California counties.

What Bankruptcy Can Do
  • Bill collector calls and letters stop. We deal with your creditors, not you.
  • Home foreclosure is halted. Stay in your house with the full protection of the federal court.
  • Garnishment from your paycheck sent to creditors is blocked. We may even get some of that money back.
  • Reposession of your car, truck, boat, or other property is stopped. Keep your property while we work out a plan.
  • Debt relief is immediate. Stop paying creditors until a repayment plan is approved.
  • Discharge your debt. All or part of your debts can be gone forever.
  • Fresh start without the heavy buden of old bills.