Some firms focus almost exclusively on Chapter 7. Others primarily handle Chapter 13. And while either approach can work in certain situations, choosing an attorney who handles both Chapter 7 and Chapter 13 can make a significant difference in the outcome of your case.

Why? Because your financial situation is unique—and the best solution should be tailored to you, not limited by an attorney’s practice focus.

Understanding the Difference: Chapter 7 vs. Chapter 13

Before diving into why attorney flexibility matters, it’s important to understand the basics.

Chapter 7 Bankruptcy: The Quick Reset

Chapter 7 is often referred to as a “fresh start” bankruptcy. It allows you to:

• Eliminate most unsecured debts (credit cards, medical bills)
• Complete your case in a matter of months
• Move forward without ongoing payment obligations

However, Chapter 7 has limitations:

• You must qualify based on income (means test)
• You may risk losing certain assets
• It doesn’t help if you’re behind on secured debts like a mortgage or car loan

Chapter 13 Bankruptcy: The Structured Solution

Chapter 13 is a reorganization plan that allows you to:

• Consolidate debt into one monthly payment
• Catch up on mortgage or car arrears over time
• Protect assets that might be at risk in Chapter 7
• Pay back a portion of your debt over 3–5 years

Chapter 13 is especially powerful if you:

• Have regular income
• Want to keep your home or vehicle
• Need time to catch up on missed payments

The Problem: One-Track Attorneys

Here’s where many people run into trouble.

Some bankruptcy attorneys:

• Only file Chapter 7 cases
• Avoid Chapter 13 due to complexity
• Steer clients toward the option they’re most comfortable with

Others:

• Focus heavily on Chapter 13
• May underutilize Chapter 7 even when it’s a better fit

This creates a risk:

You may not be getting the best solution—you may be getting the only solution your attorney offers.

Why It Matters: Your Case Deserves Flexibility

Your financial situation is not one-size-fits-all.

You may have:

• A mix of secured and unsecured debt
• Income that fluctuates
• Assets you want to protect
• Goals that extend beyond just eliminating debt

Choosing an attorney who handles both Chapter 7 and Chapter 13 gives you access to:

1. A True Side-by-Side Comparison

Instead of guessing, you can clearly see:

• What happens in Chapter 7
• What happens in Chapter 13
• The cost, timeline, and outcome of each

This allows you to make an informed decision—not a pressured one.

2. Strategic Flexibility

Sometimes the best strategy isn’t obvious at first.

For example:

• You may qualify for Chapter 7—but Chapter 13 could protect valuable assets
• You may prefer Chapter 7—but Chapter 13 could save your home
• You may start in one direction—but need to pivot based on new information

An attorney experienced in both can adjust your strategy as needed.

3. Better Problem-Solving

Complex financial situations require creative solutions.

An attorney who understands both chapters can:

• Structure a plan that minimizes repayment
• Protect key assets
• Address tax debt, arrears, or priority claims effectively

They’re not limited—they’re strategic.

Real-World Scenarios Where Dual Expertise Matters

Let’s look at a few common situations in Sacramento where having access to both options is critical.

Scenario 1: Behind on Mortgage Payments

If you’re behind on your mortgage:

• Chapter 7 may delay foreclosure temporarily
• Chapter 13 allows you to catch up over time

An attorney who only does Chapter 7 might not fully explore your ability to save your home.

Scenario 2: High Income but Overwhelming Debt

If your income is too high for Chapter 7:

• You may be required to file Chapter 13

But a skilled attorney might:

• Analyze expenses more thoroughly
• Explore whether Chapter 7 is still possible

Without that analysis, you could end up in a longer, more expensive plan unnecessarily.

Scenario 3: Protecting Assets

If you own:

• A home with equity
• Valuable property
• Investments

Chapter 13 may help you protect those assets.

But if asset protection isn’t a concern, Chapter 7 could be faster and more efficient.

The key is knowing which applies to your situation.

The Sacramento Advantage: Local Experience Matters

Bankruptcy laws are federal—but how cases are handled can vary by district.

Working with an attorney familiar with the local practices in Sacramento means:

• Understanding trustee expectations
• Navigating local court procedures
• Anticipating common issues

When combined with expertise in both Chapter 7 and Chapter 13, this creates a powerful advantage.

Tailored Solutions: The Right Approach for You

The best bankruptcy outcomes come from customized planning.

A tailored approach considers:

• Your income and expenses
• Your assets and liabilities
• Your long-term goals
• Your immediate financial pressures

Instead of forcing your situation into a predefined box, a flexible attorney builds a solution around you.

Questions to Ask Before Hiring a Bankruptcy Attorney

If you’re considering bankruptcy, ask these key questions:

• Do you handle both Chapter 7 and Chapter 13 cases?
• Which option do you recommend for me—and why?
• What are the pros and cons of each in my situation?
• Can we switch strategies if needed?
• How will this affect my long-term financial goals?

The answers will quickly reveal whether the attorney is offering guidance—or just a default path.

The Bottom Line: Flexibility Equals Better Outcomes

Choosing a bankruptcy attorney is one of the most important financial decisions you’ll make.

An attorney who handles both Chapter 7 and Chapter 13 provides:

• More options
• Better strategy
• Greater confidence in your decision

You’re not just filing a case—you’re shaping your financial future.

Final Thought

If you’re considering Chapter 13 bankruptcy in Sacramento, don’t limit yourself to an attorney who only offers one path.

The best solution isn’t Chapter 7 or Chapter 13—it’s the one that fits your life.

And the only way to find that solution is to work with someone who understands—and practices—both.

The First Step is to get a free phone consultation to evaluation your options with an experienced chapter 7 & chapter 13 attorney to see what is best for resolving your debts.

With great income comes the potential for great debt. It might seem counterintuitive, but a higher income doesn’t necessarily shield you from financial issues. Filing for bankruptcy isn’t restricted to a specific income bracket; it primarily hinges on your ability to service your debts.

We’ll begin by understanding the ‘means test’. The means test is a procedure put in place by the U.S. Bankruptcy Code to ascertain the eligibility of a debtor filing for Chapter 7 or Chapter 13 bankruptcy. It assesses the debtor’s financial resources—taking into account your income, expenses, and the size of your family—to determine if you have the means to pay off your debts.

Here’s an overview of the two types of personal bankruptcy:

• Chapter 7 Bankruptcy involves liquidation of certain assets to repay your debts, and within a few months, most of your unsecured debts (like credit card debt, medical bills, etc.) could be completely wiped out.
• Chapter 13 Bankruptcy provides you with a three to five-year discounted payment plan to settle your debts in a way that you and creditors are satisfied with, while also allowing you to keep your assets.

The means test thus aims to prevent high-income earners from filing for Chapter 7 bankruptcy, which wards off most debts without requiring repayment. These high-income earners, if they pass the means test and have regular income, can still file for Chapter 13 bankruptcy, but they will be required to repay some or all of their debt based on their income over three to five years.

The means test is initiated by comparing your monthly income with the median income for a similar household size in California. If your income exceeds the median, further means testing takes place by accounting for pre-set and actual expenses to conclude whether you can afford to repay your debt. However, certain high-income earners, like the military and business debtors, are generally exempted from the means test.

But remember, if you’re in Sacramento and earn more than $100,000 annually, the means test isn’t the solitary factor determining your ability to file for bankruptcy. A comprehensive review of your financial situation by a knowledgeable attorney is pivotal.

At Liviakis Law Firm, we are committed to providing guidance and assisting you in understanding the complexities surrounding bankruptcy. The criteria surrounding the means test or determining when to file for bankruptcy isn’t something you should navigate alone. We’re here to provide the legal advice you need to help recover from your financial setback and move forward.

Bankruptcy laws exist for a reason—to provide a fresh start to those facing financial hardship. Even if you are a high-income earner in the Sacramento region earning more than $100,000 annually, bankruptcy may still be an option. It’s important to remember that the means test is not a pass/fail examination; it’s a formula designed to assess your ability to repay your debts. Turning to experienced legal professionals like a Sacramento Bankruptcy Attorney for assistance can be the first step in reclaiming your financial freedom.

For more information and to further discuss your situation, don’t hesitate to contact Liviakis Law Firm. We will guide you on your journey towards financial stability, examining every possible avenue for you to come out stronger on the other side of these challenging times.

At first glance, debt relief programs may seem appealing for several reasons. Firstly, they offer a reduction in the overall debt amount, along with lower monthly payments. By negotiating with creditors, these programs claim to resolve all your debt issues — including high interest rates, late fees, and penalties.

Secondly, the promise of convenience is another enticing factor. For individuals juggling multiple credit cards, having a single monthly payment can look inviting. Eliminating the need to manage payments across different accounts does seem to reduce stress.

Despite these appealing factors, debt relief programs can fail to deliver on their promises in the long run. Let’s unpack the realities behind these programs and why they may not serve your best interests.

Unforeseen Consequences

Debt relief programs’ effectiveness is largely dependent on their negotiation with your creditors. However, there’s no guarantee these negotiations will be successful. Some creditors may refuse to lower interest rates or waive penalties, leaving you right where you began. Moreover, during the negotiation period (which can last several months), creditors may continue to add interest and late fees to your debt.

Impact on Credit Score

While debt relief programs promise to free you from debt, they often don’t predict the exact potential negative impacts on credit scores. Enrolling in a program and subsequently not making payments to your creditors (a typical strategy in debt negotiation) can lead to severe dents in your credit profile.

Extended Payment Timeline

Lower monthly payments might be appealing, but they often come with extended payment timelines. This means you’ll be in debt for a longer period, ultimately paying more in interest in the long run.

Big Debt Relief Fees

Many debt relief programs charge upfront fees for their services or package them within the agreed monthly process. These fees can often be higher than ideal and add to your overall debt burden.

The Road to Financial Freedom

So how does one move forward? The first step towards financial freedom is educating yourself about your financial situation and exploring all available options, not just the ones that seem easy or convenient. Consult with professionals and consider their advice.

The Liviakis Law Firm, offers a different approach. Rather than providing a quick fix, we offer comprehensive, personalized solutions to help clients regain financial control. This could involve restructuring debt, negotiating with creditors, or in some cases, considering bankruptcy as a viable option.

Getting Your Sanity Back

Despite the negative connotations, bankruptcy can sometimes be the best way to get your sanity back. It’s a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the federal bankruptcy court. While it might seem daunting, bankruptcy is a legitimate tool to help you reset your financial situation and move forward.

Irrespective of the path you choose for debt relief, the final goal should be a stronger financial future. At Liviakis Law firm, we understand the importance of financial wellness. We consider your long-term financial future and not just immediate relief. Our objective is to help you regain control, make informed decisions, and ultimately, create a more secure financial future.

The road ahead may be difficult, but with expert guidance and the right approach, it is possible to overcome the challenge of debt and walk towards a secure financial future. For more information about debt relief options, feel free to contact us at Liviakis Law firm.

“Is it hard to wait 3–5 years for a Chapter 13 plan to finish… or does the process actually change your life for the better?”

The honest answer is: both are true—but the long-term impact is overwhelmingly positive.

This article will walk through the emotional, financial, and practical realities of Chapter 13 bankruptcy, and explain why what initially feels like a waiting period often becomes one of the most valuable financial education experiences a person can have.

Understanding Chapter 13: More Than Just a Payment Plan

At its core, Chapter 13 is a structured repayment plan that allows you to reorganize your debt over a period of 3 to 5 years. Instead of juggling multiple creditors, high interest rates, and constant stress, you make one predictable monthly payment to a trustee.

But that simple explanation misses something important.

Chapter 13 is not just a legal process—it’s a behavioral reset.

It forces you to:

• Budget with intention
• Prioritize essential expenses
• Delay impulsive financial decisions
• Develop long-term discipline

For many people, this is the first time they’ve ever had a clear, structured financial system.

The Initial Shock: Why It Feels Hard at First

Let’s be real—starting a Chapter 13 plan is not easy.

1. The Commitment Feels Long

Three to five years can sound overwhelming. Most people are used to thinking in short-term cycles—paychecks, monthly bills, or even just getting through the next few weeks.

Committing to a multi-year plan can feel like:

• Losing flexibility
• Being “locked in”
• Giving up control

2. Lifestyle Adjustments Are Required

You may need to:

• Cut unnecessary expenses
• Delay large purchases
• Stick to a tighter budget

For individuals who are used to using credit to bridge gaps, this adjustment can feel uncomfortable.

3. Psychological Resistance

Many people associate bankruptcy with stigma or failure. Even though Chapter 13 is designed as a solution, there’s often an internal hurdle to overcome.

But here’s what most people discover:

The discomfort is temporary. The transformation is permanent.

The Turning Point: When the Plan Starts Working

After the first few months, something powerful happens.

The Chaos Stops

• Collection calls stop
• Lawsuits stop
• Wage garnishments stop
• Foreclosure threats pause

For the first time in a long time, you can breathe.

Your Finances Become Predictable

Instead of:

• Minimum payments that never reduce principal
• High-interest compounding debt
• Constant uncertainty

You now have:

• One fixed monthly payment
• A clear end date
• A structured plan

This predictability alone is life-changing.

The Hidden Benefit: Financial Education in Real Time

Most people never receive formal financial education.

Chapter 13 changes that—because you learn by doing.

1. You Learn How to Budget (For Real)

Not theoretical budgeting. Real-world budgeting.

You begin to:

• Track where your money actually goes
• Separate needs from wants
• Plan ahead for expenses

Over time, this becomes second nature.

2. You Break the Cycle of Debt Dependence

Before Chapter 13, many people rely on:

• Credit cards
• Personal loans
• Balance transfers

During Chapter 13, those options are removed.

At first, this feels restrictive.

But eventually, it becomes empowering.

You realize:

• You don’t need debt to survive
• You can live within your means
• Financial stability comes from structure, not credit

3. You Understand the True Cost of Money

Interest is no longer an abstract concept.

You see clearly:

• How much debt costs over time
• How quickly balances grow
• Why minimum payments keep people stuck

This awareness fundamentally changes future decisions.

4. You Develop Financial Discipline

Discipline is often misunderstood as restriction.

In reality, it’s control.

By the time your Chapter 13 plan is complete, you’ve built:

• Consistency
• Patience
• Long-term thinking

These are the same traits that lead to wealth-building later.

The Emotional Shift: From Stress to Confidence

At the beginning of Chapter 13, many people feel:

• Overwhelmed
• Embarrassed
• Anxious

But over time, those feelings shift.

Confidence Replaces Fear

You know:

• What you owe
• What you’re paying
• When you’ll be done

There are no surprises.

Hope Replaces Uncertainty

Instead of wondering:

• “Will I ever get out of this?”

You now know:

• “I will be debt-free on this date.”

That certainty is powerful.

Control Replaces Chaos

You’re no longer reacting to financial problems.

You’re executing a plan.

The Long-Term Impact: Life After Chapter 13

This is where the real answer to the original question becomes clear.

Chapter 13 is not just something you “get through.”
It’s something that reshapes how you live financially forever.

1. Stronger Financial Habits

After 3–5 years of structured payments, most people:

• Continue budgeting
• Avoid unnecessary debt
• Save more consistently

These habits don’t disappear—they become permanent.

2. Improved Credit Over Time

While bankruptcy does appear on your credit report, many people are surprised by how quickly they can rebuild.

Why?

Because they now:

• Pay on time
• Avoid overextending
• Make smarter financial decisions

Lenders care about current behavior—not just past history.

3. Better Decision-Making

Before Chapter 13:

• Decisions may have been reactive

After Chapter 13:

• Decisions are intentional

You think long-term:

• “Can I afford this?”
• “Is this necessary?”
• “What’s the impact in 6 months or a year?”

4. Reduced Financial Stress

Perhaps the most underrated benefit:

Peace of mind.

No more:

• Constant creditor calls
• Fear of lawsuits
• Anxiety about mounting balances

That mental relief carries into every area of life.

Is It Hard to Wait? Yes—But It Gets Easier

Let’s address the question directly.

Is it hard to wait 3–5 years?

At first, yes.

But the experience evolves:

Months 1–3: Adjustment period
Months 4–12: Stability begins
Year 2+: Confidence and routine
Final year: Momentum and anticipation

By the end, many people don’t feel like they’ve been “waiting.”

They feel like they’ve been building something.

Why Sacramento Residents Are Choosing Chapter 13 More Often

In a city like Sacramento, where:

• Housing costs are high
• Interest rates fluctuate
• Economic conditions are uncertain

Chapter 13 offers something rare:

Structure in an unpredictable environment.

It allows individuals to:

• Protect their homes
• Manage rising debt
• Create a sustainable financial path

The Reframe: It’s Not a Delay—It’s a Transformation

The biggest mindset shift is this:

Chapter 13 is not putting your life on hold.
It’s putting your financial future on track.

Instead of asking:

• “How do I get through this?”

The better question is:

• “What will I become by the end of this?”

Final Answer: Hard… or Life-Changing?

So, is it hard to wait for the completion of a Chapter 13 plan?

Yes—in the beginning.

But is it an educational experience that creates a lifelong positive impact?

Absolutely.

For most people, Chapter 13 becomes:

• The first time they truly understand money
• The moment they regain control
• The foundation for a stronger financial future

Closing Thought

If you’re considering Chapter 13, don’t think of it as a burden.

Think of it as:

A structured path from financial chaos to financial clarity.

Because at the end of those 3–5 years, you won’t just be debt-free.

You’ll be financially transformed.

Contact an experienced chapter 13 bankruptcy attorney to find out the pros and cons of the process for unique situation, as legal advice should be tailored to you.

Debt relief programs are the first line of defense for many people facing overwhelming debt. Such programs typically involve negotiating with creditors to reduce your total debt, lower interest rates, and potentially avoid lawsuits. The primary problem is that these programs can’t guarantee these outcomes. Depending on the debt relief agency’s skill and your creditors’ willingness to negotiate, you may still face the risk of being sued for the unpaid debts.

This is where the Chapter 13 bankruptcy can provide a lifeline. Often referred to as a wage earner’s plan, Chapter 13 bankruptcy allows individuals with regular income to develop a plan to repay all or part of their debts over three to five years. You can use Chapter 13 to halt the foreclosure on a home, catch up on missed mortgage or car payments, pay back taxes, stop interest from accruing on your credit card debt, and more.

So, how does Chapter 13 outperform debt relief programs?

The primary advantage of Chapter 13 is the ‘automatic stay.’ Once a Chapter 13 bankruptcy is filed, an automatic stay goes into effect immediately. This stay prevents creditors from collecting debts, stops wage garnishment, and freezes any debt-related lawsuits. In contrast, debt relief programs do not offer such protection.

Chapter 13 bankruptcy also offers a structured, court-blessed repayment plan. This differs significantly from debt relief programs, which involve a less formal, often unsecured repayment agreement that relies on creditors’ good faith.

One key aspect of a Chapter 13 bankruptcy plan is that it can help you repay ‘priority debts’ like unpaid child support, spousal support, or tax debt. A debt relief program could leave you exposed to these debts, but Chapter 13 bankruptcy ensures they are dealt with.

Moreover, a completed Chapter 13 bankruptcy can lead to a discharge of certain debts that are generally non-dischargeable in a debt relief program. In the end, Chapter 13 helps you regain control of your financial situation and puts a light at the end of a seemingly long, dark tunnel.

Seeking Professional Help

Navigating through financial difficulties and making decisions about things like debt relief programs and bankruptcy can be a daunting task. It’s one thing to read about these on the internet; it’s another thing entirely to apply them in real life.

Fortunately, you don’t have to do it alone. At Liviakis Law Firm, our experienced attorneys can guide you through this challenging period. We can help you understand your options, the benefits and drawbacks of each one, and assist you in making an informed decision for your specific circumstances.

Don’t let a lawsuit during your debt relief program cause panic. Reach out to us and let’s explore the possibilities together.

Remember, no matter how overwhelming your debt feels today, there is always a solution. It’s just a matter of finding it.

There’s a common misconception that bankruptcy is the result of irresponsibility. However, bankruptcy is often caused by circumstances out of one’s control. Unanticipated medical bills, loss of employment, or a sudden change in family status can spiral you into financial turmoil. Regardless of the reasons that led you to this point, it’s critical that you find an Elk Grove bankruptcy lawyer who understands your situation and can help you navigate your way to relief.

At Liviakis Law Firm, we understand that everyone’s situation is unique. We don’t offer cookie-cutter solutions. Instead, we take the time to understand your finances fully. Together, we will identify the best path forward for you, whether that’s filing for Chapter 7, Chapter 13, or finding an alternative to bankruptcy. This level of individualized attention ensures that every client we serve gets the representation they deserve.

Not only do we understand, but we also empathize. Our legal team knows the stress that comes from economic uncertainty. We know the anxiety that keeps you awake at night, worrying about the future. We’re not just your lawyers, we’re your partners, working tirelessly to help secure a more prosperous future for you and your family.

But understanding without action is not enough. You need an Elk Grove bankruptcy lawyer that not only comprehends your situation but can also effectively represent you. You need results, and we have a record of delivering them. Our attorneys have an extensive understanding of both federal and California bankruptcy laws. This solid foundation, combined with their acute tactical skills and empathic approach, equips them with the tools necessary to effectively fight for your interests.

One of the hallmarks of our service is our commitment to keeping you informed at every stage of the process. From your preliminary enquiry right through to your case resolution, we ensure you remain at the center of the decision-making process. Our goal is to empower you, to knock down the walls of uncertainty, and to help you see the light at the end of the tunnel.

To achieve this, we construct a sound, skilful, and strategic plan specifically tailored for your circumstances. We counsel you about all the possible situations you might encounter in the bankruptcy process. We explore all viable alternatives, including loan modifications, debt consolidation, and foreclosure avoidance.

Let the Liviakis Law Firm shoulder the burden during these challenging times. While bankruptcy may seem daunting, it can offer much-needed relief and a new beginning. With a capable bankruptcy lawyer by your side, you can regain control over your financial future.

Think you’re ready to start the journey towards fiscal freedom? We’re ready to discuss your options and help you make the best decision for your financial future.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed to discharge most of your non-exempt debts by selling off non-exempt assets. For individuals with little to no disposable income, Chapter 7 offers a chance to wipe the slate clean.

In California, like in other states, you need to qualify for Chapter 7 via the means test. This test assesses your income in relation to the median income of similarly sized households in California. If your income falls below the median, you can file for Chapter 7. However, if your income is above the median, additional tests on your disposable income and expenses are needed.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, on the other hand, is designed for individuals who have regular income and can pay back a portion of their debt through a repayment plan. It allows filers to keep their assets and restructure their obligations to make payments more manageable.

Debtors who opt for this form of bankruptcy propose a three- to five-year repayment plan. If the court approves the repayment plan, creditors are then bound to this new agreement.

Consider Your Circumstances

To determine which chapter of bankruptcy you should file, you’ll want to consider your unique circumstances and seek legal advice. A few key things to consider include your income, assets, debt load, and your long-term financial goals. For instance, if your major concern is saving a home from foreclosure, Chapter 13 would be the better option, as it offers a provision that helps filers catch up on past due mortgage payments.

However, if you have limited income and no major assets, Chapter 7 may provide the relief you need. Everyone’s situation is unique, and it’s important to review all options with a knowledgeable California bankruptcy attorney.

Conclusion

Navigating the bankruptcy process can be challenging and confusing. Understanding your options in detail enables you to make an informed decision. Whether Chapter 7 or Chapter 13 is more suitable for you depends chiefly on your financial situation and goals.

At Liviakis Law Firm, we provide comprehensive guidance throughout the bankruptcy process. Contact our team for a dedicated approach to resolving your financial difficulties.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often referred to as ‘wage earner’s plan’, allows individuals with regular income to develop a plan to repay all or part of their debts. Debtors propose a repayment plan that details how they will settle their debts over three to five years. The main objective of Chapter 13 bankruptcy is to enable debtors to maintain their financial standing while paying off creditors over a given period.

Governing Laws in Northern California

In Northern California, the law allows debtors substantial levels of protection for their property when they file for Chapter 13 bankruptcy. The Bankruptcy Code does not require debtors to liquidate their property, unlike Chapter 7 bankruptcy. The implementation of Chapter 13 bankruptcy is governed by Federal law, but California state law plays a part in determining how much of your property you can protect.

Exempt Property Under Chapter 13 Bankruptcy

Under Chapter 13 bankruptcy, debtors can keep both ‘exempt’ and ‘non-exempt’ property. Exemptions are for items like clothing, household furnishings, appliances, pensions, retirement plans, some equity in vehicles, and possibly some equity in your home. California provides two different set of exemptions that debtors can choose from – System 1 (704 Exemptions) and System 2 (703 Exemptions). Each system provides various levels of exemptions for different types of assets. It’s crucial to work with a Sacramento bankruptcy attorney to select the appropriate system based on your circumstances.

Non-exempt Property Under Chapter 13 Bankruptcy

Non-exempt property refers to unnecessary luxury items, vacation homes, non-retirement investments, and other non-essential assets. In a Chapter 13 bankruptcy, you are allowed to keep non-exempt property, but you must pay your unsecured creditors an amount equal to the net value of these non-exempt assets over the course of your repayment plan.

Chapter 13: The Bottom Line

Filing for Chapter 13 bankruptcy in Northern California is an effective strategy for many dealing with insurmountable debt. It enables you to keep your assets and adjust your debts, offering a financial path forward. However, the process is complex and filled with critical decisions that have lasting impacts. It’s crucial to get competent legal counsel such as Liviakis Law Firm to guide you through this process.

For any further questions or to schedule a consultation, don’t hesitate to reach out. Please remember that each case is different, and results may vary depending on your circumstances.

What is Equity, and What’s Its Importance?

Home equity, the difference between your current mortgage balance and the fair market value of your home, is not simply a number. Instead, it represents your hard work, financial diligence and the roof over your family’s head. In financially challenging times, safeguarding this equity becomes paramount.

Chapter 13 Bankruptcy Explained

Unlike a Chapter 7 bankruptcy in which your assets might be sold to pay off your creditors, Chapter 13 bankruptcy involves reorganizing your debts into a suitable repayment plan. It enables you to protect your home while you repay a portion or all of your debts over three to five years.

The Role of Chapter 13 Bankruptcy in Equity Protection

Chapter 13 bankruptcy is primarily designed for wage earners with regular income, enabling them to develop a plan to repay all or part of their debts. This unique bankruptcy option empowers homeowners in Sacramento to protect equity under California laws that allow considerable exemptions in homestead territory.

Bankruptcy Exemptions in California

What makes Chapter 13 unique when navigating bankruptcy and real estate is that residents have the choice between two separate exemption systems. One enables you to protect various categories of assets, including a certain amount of equity in real property, while the other provides a larger exemption specifically designated for your residence.

Making the Right Decision for Your Financial Future

Operating a Chapter 13 bankruptcy effectively requires understanding the complex laws and options that influence your rights and responsibilities. It is a serious financial and legal commitment. As such, seeking the assistance of qualified professionals with extensive experience in the field can help guide you throughout the process.

Liviakis Law Firm attorneys are versed in the nuances of bankruptcy legislation and are dedicated to simplifying the process for you. Our aim is to devise a plan that makes the most of the advantages of filing Chapter 13 bankruptcy for you, while ensuring that your home equity remains intact to the maximum extent possible.

Conclusion

A Chapter 13 bankruptcy can be a lifeline during challenging economic times. By choosing to explore this option, you are actively trying to protect your hard-earned home equity, take control of your financial situation, and indicate a clear intent to meet your responsibilities. Navigating these waters requires a reliable and proficient guide, and we at Liviakis Law Firm are ready to be that guiding light.

Contact us at 916 459 2364 to schedule a free consultation and start laying the groundwork for a more secure financial future for you and your family.

Mik Liviakis, California Chapter 13 Bankruptcy Lawyer

Understanding Wage Garnishments

Wage garnishments are a debt collection method where a portion of your paycheck is withheld by your employer to repay creditors. This can happen in California if you have unpaid taxes, child support, or outstanding loans. In most cases, creditors can’t start garnishing wages without a court order.

The Impact of Wage Garnishments

Anyone who’s experienced wage garnishments knows they can be detrimental to your financial stability. It results in less take-home pay and may lead you to sink further into debt. But it’s essential to remember that there are legal protections and solutions available to you.

Chapter 7 Bankruptcy: An Introduction

Chapter 7 Bankruptcy, also known as “liquidation,” is a bankruptcy chapter that allows you to discharge certain debts. These debts might include credit card bills, medical costs, and personal loans. While it may sound scary, in many cases, Chapter 7 doesn’t necessarily mean you’ll all of your property.

How Does it Stop Wage Garnishments?

The moment you file a Chapter 7 Bankruptcy, an “automatic stay” goes into effect. This stay is a legal provision that stops most debt collectors from collecting debts. Wage garnishments, excluding those for child support and alimony, are included in this cessation. This stoppage eliminates the garnishment until the bankruptcy case is closed, dismissed, or until the stay is lifted or expires. In most cases, this leads to a permanent stoppage of the wage garnishment.

The Role of a Bankruptcy Attorney

While the process might seem straightforward, navigating the legal terrain of bankruptcy can prove to be challenging without professional help. A seasoned attorney like those at the Liviakis Law Firm can provide guidance and advice. They can help you understand if Chapter 7 Bankruptcy is the right move for your specific situation and navigate through the legal process.

Contact Us

If you want more information or have any questions, please, don’t hesitate to reach out to Liviakis Law Firm at 916 459 2364. We assist our clients with Chapter 7 Bankruptcy in California and provide necessary law advice and support to help them navigate their financial challenges. Let us help you turn your financial life around.

Note: This blog post is for informational purposes only and should not be taken as legal advice. Bankruptcy is a serious decision that requires careful consideration and legal counsel. Contact an attorney for professional advice tailored to your specific situation.

Contact Mik Liviakis, a Trusted California Chapter 7 Attorney

Chapter 13 bankruptcy, also known as a wage earner’s plan, allows individuals with regular income to develop a plan to repay all or part of their debts. Over three to five years, debtors propose a repayment plan to make installments to creditors. This option provides individuals the chance to save their homes from foreclosure, reschedule secured debts, and possibly pay off unsecured debts in full or in part.

Filing for Chapter 13 in Sacramento involves several steps:

• Evaluate financial situation: Gather all information about your income, debts, and assets. It is crucial to be honest and comprehensive in this assessment to fully understand your financial condition
• Pre-bankruptcy credit counseling: Before you can file for any form of bankruptcy, a credit counseling course must be completed through a provider approved by the United States Trustee’s office.
• Preparing the petition: With the guidance of an attorney at the Liviakis Law Firm, the bankruptcy petition is drafted. This document includes schedules of assets and liabilities, current income and expenditures, contracts and unexpired leases, and a statement of financial affairs.
• Developing a repayment plan: This is the heart of a Chapter 13 case. The plan, approved by the court, details how much each creditor is paid, the length of the plan, and the amount paid monthly by the debtor.
• Filing the petition and plan: Once the petition and plan are completed, they are filed with the bankruptcy court. This action puts an automatic stay in place, stopping most collection actions against the debtor or the debtor’s property.
• Attending a confirmation hearing: A bankruptcy judge will hold a confirmation hearing to decide whether the proposed repayment plan meets all statutory requirements.

It is essential to remember that filing for Chapter 13 bankruptcy is a legal process with specific guidelines and requirements. As such, completing these steps without legal guidance can prove to be a challenging task that can result in detrimental mistakes.

This is where the seasoned bankruptcy attorneys at Liviakis Law Firm come in. Our attorneys are well versed in the intricacies of bankruptcy law and are dedicated to helping individuals in Sacramento successfully navigate the process of filing for Chapter 13 bankruptcy. We strive to provide our clients with the knowledge, support, and legal expertise necessary to ensure a smooth and efficient bankruptcy filing process.

If you’re considering filing for Chapter 13 bankruptcy in Sacramento, we invite you to contact Liviakis Law Firm at 916 459 2364 for a free consultation. We understand that declaring bankruptcy is a significant decision, and we are committed to helping clients make informed and confident choices about their financial future.

Mik Liviakis, Experienced Bankruptcy Attorney

Understanding Bankruptcy Cases

Firstly, it’s crucial to understand bankruptcy filings. Chapter 7 bankruptcy, often termed ‘liquidation bankruptcy’, allows for the discharge of several unsecured debts after non-exempt assets have been liquidated by the trustee. However, it might not absolve all debt, such as student loans, tax liabilities, or alimony payments. Chapter 13 bankruptcy, on the other hand, is a ‘reorganization bankruptcy’. It enables individuals with regular income to formulate a plan to repay all or part of their debts through a trustee over a period of three to five years.

Why Chapter 13 After Chapter 7?

Often referred to as ‘Chapter 20’, a strategy to file for Chapter 13 bankruptcy after Chapter 7 can be useful under certain circumstances. The main reason is when the Chapter 7 bankruptcy has not discharged all due debts. Or, it might be beneficial if a debtor has significant assets that they want to keep, which would otherwise be liquidated in a Chapter 7 scenario.

Rules and Restrictions

The Bankruptcy Code provides guidelines regarding sequential filings. To receive a discharge in the Chapter 13 case after a Chapter 7, there must be at least a four-year gap between the two filings. However, even if the four-year mark hasn’t been reached, debtors can still file a Chapter 13 bankruptcy for the sake of repayment plan benefits, even though they won’t receive a discharge of debt.

The Role of the Local Sacramento Court

Bankruptcy cases, even subsequent filings, are not automatically denied. The courts in Sacramento, CA, together with the appointed trustee, evaluate each case’s merits. They assess whether the filing is abusive or unfair to creditors, considering income, expenses, and debt type for Chapter 13 eligibility.

Importance of Legal Assistance

Filing for Chapter 13 after a recent Chapter 7 case can be a complex process, and legal guidance is invaluable. At Liviakis Law Firm, we understand the ins and outs of bankruptcy laws and can help you navigate this complicated terrain. Our comprehensive legal strategy aims at assisting clients in managing their debts and piecing together their financial lives.

For any queries or to schedule a free consultation, call Liviakis Law Firm at 916 459 2364. We bridge the gap between your financial challenges and a fresh financial start.

Note: This article offers general advice and may not consider every aspect of your specific circumstances. For personalized advice, contact a qualified professional.

Mik Liviakis, Attorney at Law

Bankruptcy law is complex and nuanced. Various forms need to be correctly filled out, deadlines must be adhered to, and the laws vary by state. This level of complexity often requires knowledge that only a professional, such as the team at Liviakis Law Firm, can provide.

Understanding Bankruptcy Law

Unless your father-in-law has an in-depth understanding of bankruptcy law and its workings, he might find himself overwhelmed by the process, and his involvement may indeed put your case at risk. Misfiling documents and missing deadlines can result in severe financial consequences and could even lead to the dismissal of your case.

Privacy and Filing for Bankruptcy

Bankruptcy is deeply personal and can affect your interactions with those around you. Having a father-in-law involved in the process could cause unnecessary strain on your familial relationships. Hiring an attorney to handle your bankruptcy case will help you maintain professional boundaries and assure your privacy.

The Importance of a Professional Touch

When it comes to legal matters as significant as bankruptcy, it is recommended to entrust your case to dedicated professionals. A seasoned bankruptcy attorney at Liviakis Law Firm has the specific knowledge required to approach these matters systematically, walking through the process from beginning to end, ensuring that you are fully aware of your rights and options.

Conclusion

While it may be tempting to involve your father-in-law, or any other well-meaning family member, in helping you handle your Sacramento bankruptcy case, it may not be the wisest course of action. The intricate nature of bankruptcy law, coupled with the personal aspects that are attached to it, advocate for the involvement of an adept professional.

The Consequences of Not Paying Your Creditors

It is not as simple as it sounds to just stop paying your creditors. Yes, you may get a temporary reprieve, but eventually, the unpaid debts start to pile up and the issues arise. Late payments affect your credit score negatively, making it harder to get approved for new credit or loans. Eventually, your creditors may turn your debts over to a collection agency or even decide to sue you. If a judgement is declared against you, your wages may be garnished, or your bank account may be levied.

How a Bankruptcy Attorney Can Help

The role of a bankruptcy attorney is to guide, protect, and advocate for you during the bankruptcy process. They can help you understand the complex bankruptcy laws and advise you on the best course of action based on your unique circumstances. Bankruptcy law is complex and intricate. It has the potential to act as a lifeline for those drowning in debt, but it is not without its pitfalls. Having a Sacramento bankruptcy attorney on your side can help ensure that you don’t make costly mistakes.

Understanding Different Bankruptcy Options with Your Attorney

There are different types of bankruptcy that you can file for, including Chapter 7, Chapter 11, and Chapter 13. Each type has its own set of rules, requirements, benefits, and drawbacks. A trusted bankruptcy attorney can explain these differences and help you choose which one is right for you. They can also help you prepare your bankruptcy paperwork, ensuring that it’s filled out accurately and completely to avoid any unnecessary delays or complications in your case.

Representation at Creditors Meetings and Bankruptcy Court

When you file for bankruptcy, you are required to attend a meeting with your creditors and a bankruptcy trustee. This can be an intimidating process, but having a seasoned attorney by your side can provide some much-needed reassurance. An attorney can also represent you in bankruptcy court, fielding any tough questions and ensuring that your rights and interests are protected throughout the bankruptcy process.

Peace of Mind

Perhaps one of the greatest benefits of hiring a bankruptcy attorney is peace of mind. Knowing that you have a committed advocate on your side, that you’re protected from creditor harassment, and that you have a clear plan to recover from your financial woes can relieve a significant amount of stress in a challenging time.

In Conclusion

While it might seem like a smart idea to save money by just stopping payments to creditors, in the long run, it might prove disastrous. Professional legal advice paves the way for an efficient, structured, and less stressful bankruptcy process.

If you’re considering bankruptcy or just have questions about the process, please don’t hesitate to contact Liviakis Law Firm. We’re here to assist you in navigating the complexity of bankruptcy law and working towards a brighter financial future.

Bankruptcy: A Binding Legal Process

Bankruptcy is a federal legal process designed to help people and businesses get a fresh financial start by either discharging debts or making a plan to repay them. Once you file for bankruptcy, the process kicks into gear. It is essential to understand that bankruptcy has profound legal implications, and the decision to file should be made with full knowledge of the consequences.

The Ability to Withdraw a Bankruptcy Filing

The short answer is maybe, you can change your mind after filing for bankruptcy, but it is not always easy. After filing, you may ask for permission to dismiss your bankruptcy case voluntarily. This means that you can ask the court to dismiss your bankruptcy case if you change your mind or if your financial circumstances change.

However, it’s not as simple as just canceling the process. The court must approve your dismissal request, and this may not always be granted. For example, in most Chapter 7 cases, a court may refuse dismissal if it’s found that doing so would not be in the best interests of the creditors. On the other hand, in Chapter 13 bankruptcy, debtors are usually allowed to dismiss their cases at any time.

What Happens If You Withdraw Your Bankruptcy Filing?

Withdrawing a bankruptcy filing will not negate the effects of the bankruptcy process. The bankruptcy filing will remain on your credit report, which can affect future creditworthiness. Furthermore, you’ll remain bound by the “automatic stay” provision. This rule prevents creditors from initiating or continuing lawsuits, wage garnishments, or even telephone calls demanding payments.

Can I Refile If I Change My Mind Again?

If you voluntarily dismiss your case, you can refile for bankruptcy. However, you may be subject to certain restrictions and waiting periods. The rules surrounding refiling depend on the circumstances that led to your previous case’s dismissal and the type of bankruptcy you initially filed.

In Conclusion

The decision to file for bankruptcy is a significant one, and it’s completely normal to second-guess this decision. If you find yourself wondering if you can change your mind after filing for bankruptcy in Sacramento, the answer is that it might be possible- but it’s not that straightforward. Understanding the potential repercussions and limitations is vital, which is why it’s always wise to consult with an experienced Sacramento bankruptcy attorney.

At Liviakis Law Firm, we understand the complexities of bankruptcy law and can help you navigate through the process, whether you’re considering filing, wanting to change your mind, or considering refiling. Our knowledgeable attorneys are here to support you.

Bankruptcy may seem like a drastic choice, especially when considering its repercussions on credit scores. However, bankruptcy is often the best option for people burdened by unmanageable debts. It’s a way to start over and rebuild, paving the path towards a more secure financial future.

Bankruptcy offers two main options for individuals – Chapter 7 and Chapter 13. Chapter 7, also known as liquidation bankruptcy, entails the sale of a debtor’s non-exempt assets by a bankruptcy trustee. The proceeds are then used to pay off creditors. This option completely wipes out unsecured debts and provides an opportunity to start a fresh financial chapter.

Chapter 13, on the other hand, is a reorganization bankruptcy. It allows individuals with a regular income to develop a plan to repay all or part of their debts over a three-to-five-year period. This option safeguards individuals from foreclosure on their homes, catch up on missed car or mortgage payments, and pay back taxes.

Engaging an El Dorado CA Bankruptcy Lawyer can guide you through the complexities of the bankruptcy laws, and decipher which option is most suitable for you. They can provide advice on asset protection, debt relief options, dealing with creditors, and provide representation in court if needed.

Beginning on a new financial journey post filing for bankruptcy can be overwhelming. It is critical to adopt certain habits to prevent falling back into the debt trap. Establishing a budget and sticking to it, creating an emergency fund, and living below your means are valuable skills that can cushion you against unforeseen future financial crises.

Another beneficial strategy is to focus on rebuilding your credit. This may involve timely payment of bills, regular checks on your credit report, and opening a secured credit card or credit builder loan, which can help you gradually rebuild your credit over time.

With the right assistance by your side, you can resolve your current issues effectively and forge ahead towards a financially secure future. Reclaim control over your financial matters with a reliable bankruptcy lawyer and gradually regain your financial health.

For further assistance with bankruptcy in El Dorado County, you may reach out to Liviakis Law Firm at 916 459 2364. Whether it’s filing for bankruptcy or strategizing for a future free of financial worries, our legal team offers comprehensive services tailored to your circumstances.

Bankruptcy is a legal process designed to give debt-ridden individuals or businesses a chance to start anew by discharging certain debts. However, it is a common misconception that filing for bankruptcy strips an individual off their entire income or asserts control over all financial activities. This isn’t the case.

Typically, when you file for bankruptcy, it is your ‘disposable income’ that is primarily considered. Disposable income generally refers to the income left after subtracting essential expenses needed for maintaining a basic standard of living. Therefore, if helping your family in the Philippines is an integral part of your monthly outgoings deemed as necessary, then it is possible to continue helping.

That being said, this also largely depends on the chapter of bankruptcy you file under. Chapter 7, often referred to as ‘liquidation bankruptcy’, permits the elimination of most or all unsecured debts while retaining future income. In contrast, Chapter 13 involves a repayment plan to pay back all or some debts over time, and your disposable income plays a pivotal role in determining the repayment plan. Thus, it remains crucial to discuss your regular financial commitments with your bankruptcy attorney, ensuring accounting for your ongoing obligations.

Furthermore, the Bankruptcy Code allows ‘reasonable and necessary’ expenses, which may include remittances to dependents. Bankruptcy courts understand the cultural norm among Filipino Americans of supporting family back home and could consider these remittances as legitimate expenses, thus, not impacting your bankruptcy schedule. But, the decision ultimately rests in the hands of your trustee and the bankruptcy court interpreting your situation.

Overall, the point to remember is: bankruptcy laws serve to protect rather than deprive. Yet, given the complexity and intricacies involved, professional guidance is incredibly beneficial. At Liviakis Law Firm, we are committed to walk you through the bankruptcy process and help you make informed decisions while considering your specific context and responsibilities.

To continue helping your family in the Philippines amid bankruptcy, careful planning, honest communication, and professional legal assistance can make all the difference. If you would like to discuss your situation in detail, feel free to reach out to a bankruptcy lawyer helping Filipinos in Sacramento, CA. Find an experienced attorney that can guide you towards a fresh financial start without jeopardizing the support of your loved ones in the Philippines.

Many people find themselves burdened by significant debt and, in extreme circumstances, may choose to file for bankruptcy. The usual belief linked with bankruptcy is that it imposes stern restrictions on spending, which can lead individuals to wonder about the feasibility of joining in on holiday celebrations. However, it’s essential to remember that bankruptcy does not prevent people from observing Christmas or any other holiday.

Bankruptcy laws, indeed, call for the careful administration of the debtor’s financial affairs and prohibit wasteful expenditure. However, reasonable and conservative spending on personal or family enjoyment – including holiday celebrations – is not forbidden. Bankruptcy trustees comprehend the importance of maintaining a positive mental and emotional health, which undoubtedly involves participating in societal festivities and maintaining personal relationships.

Still, it’s suggested that those who’ve filed for bankruptcy keep their holiday spending in check. Extravagant spending could raise objections from the trustee in-charge and possibly lead to implications in the ongoing bankruptcy proceedings. It’s therefore advisable, especially during bankruptcy, to focus on the non-material aspects of the holiday season – the joy of spending time with loved ones, the warmth of giving, and the satisfaction of gratitude.

At times, people may also worry about their ability to procure gifts, considering their strict budget constraints. A great approach, under these circumstances, could be embracing the spirit of creativity and sentimentality over materialism. Handmade gifts, for example, hold significant emotional value and can invariably be more appreciated than purchased goods.

If you find yourself overwhelmed amidst your financial concerns and are considering bankruptcy, please remember it’s a legal tool designed to support people facing extreme financial difficulties. It’s meant to offer a fresh financial start and not to ruin your personal life or inherent human joys. Debts and finances, while important, should not stop you from living your life and celebrating culturally significant holidays like Christmas.

Navigating the complexities of bankruptcy can be challenging, so seeking the advice of a qualified attorney can be beneficial. The Liviakis Law Firm, serving Sacramento, CA, is always available to provide legal advice and guidance. For in-depth understanding and personalized guidance on bankruptcy filing and how it might affect you, contact a Sacramento bankruptcy lawyer for a detailed debt relief plan.

What is Chapter 13 Bankruptcy

Before we delve into moving, let’s briefly cover what Chapter 13 Bankruptcy entails. Unlike Chapter 7, which liquidates your assets to pay off debts, Chapter 13 allows you to reorganize them. It provides you with a repayment plan over three to five years to take care of your debt while keeping your property.

Can I Move?

Yes, you can. Filing bankruptcy, including Chapter 13, doesn’t rob you of your fundamental right to travel or relocate. However, bankruptcy proceedings are complex, and moving during this period might come with a few challenges and limitations. These depend on your specific situation and the reasons for your planned move.

Challenges and Limitations

The first challenge arises from the need to attend mandatory court appearances, such as the 341 meeting of creditors. Even if you moved, you’d have to arrange to make an appearance at these hearings.

Another thing to consider is how the move will impact your repayment plan. If moving influences your income or living expenses in a significant way, you need to inform the trustee immediately and may have to readjust your payment plan.

Steps to Take If You’re Planning to Move

If you still decide to move, here’s what you need to do:

• Inform Your Attorney: Your first point of call should be your attorney. They can guide you on what steps to take and the impact your move might have on your bankruptcy proceeding.
• Inform the Court: Any changes in your address must be reported promptly to the court and your bankruptcy trustee.
• Update Your Records: Have your records updated across all necessary bodies for mail redirecting. Remember, missed notices can result in serious consequences, such as dismissal of your case.
• Plan for Court Appearances: If you must attend court proceedings, ensure you have a plan about how to appear at hearings. Failure to appear can lead to dismissal of your case.

Moving during the bankruptcy process is certainly possible. However, it requires meticulous planning, and you must make sure you keep all the necessary parties informed. Consult with an experienced Sacramento bankruptcy attorney to help you navigate this process with ease.

Keep in mind that while this information is designed to provide a general overview, each person’s bankruptcy is unique. Nothing replaces professional legal counsel tailored to your specific situation.

The concept of bad faith generally means an intent to deceive or act dishonestly. In the context of bankruptcy, it can matter because bankruptcy courts are federal courts that require utmost honesty and full disclosure from filers. Bad faith can result in the bankruptcy case being dismissed.

To understand whether a high income can be seen as bad faith, it is first important to understand the conditions under which someone may file for Chapter 7 bankruptcy. An individual can only file for Chapter 7 bankruptcy if their income is low enough to pass the means test – a test to determine whether or not you have enough “disposable income” to pay back some or all of your debt.

If you’re someone with a high income, you might still pass the means test if your expenses are also substantial. However, if you’re trying to file for Chapter 7 bankruptcy and the courts believe you have enough money to repay your debts, they may view this as acting in bad faith.

This doesn’t mean that high income individuals cannot file for Chapter 7 bankruptcy. But it does mean that persons with substantial income will need to provide strong evidence showing that their debts are truly unmanageable in relation to their income.

In some instances, even if you pass the ‘means test’, the bankruptcy court may still examine your case for bad faith. Courts can consider different factors to decide if a Chapter 7 bankruptcy filing was made in bad faith. These factors may include your honesty in the documentation, your repayment efforts before filing, and your income and expenditure pattern.

The guiding principle here is honesty. In approaching a bankruptcy filing, both high income and low income individuals must strive to disclose every bit of their financial status. Responding honestly provides the best chance at reaching lasting debt relief through the bankruptcy process.

However, bankruptcy laws are complex, and what seems straightforward might have nuances that can affect your case. To help ensure you are making the best possible decisions to protect your financial future, it is wise to employ experienced legal counsel.

Liviakis Law Firm offers trusted legal guidance throughout the bankruptcy process. The surest way to avoid allegations of bad faith is to seek the counsel of a trusted attorney. Get a review with a Sacramento Bankruptcy Lawyer to analyze your options before filing a case.