BANKRUPTCY      A bankruptcy is a legal proceeding filed in the U. S. Bankruptcy Court pursuant to a federal law, the Bankruptcy Code, the purpose of which is to stop creditors from collecting debts you can't afford to pay. When a case is filed,  a temporary restraining order called "the automatic stay" immediately goes into affect and prohibits creditors from calling you, writing you, suing you, repossessing or foreclosing upon your property, garnishing your wages or taking almost any other kind of collection action. The stay applies to almost all creditors, including the IRS and other government agencies!  How long does this protection remain in affect?  That depends on the chapter of bankruptcy under which you file.             The Bankruptcy Code provides several different remedies for different kinds of debtors. These remedies are identified by the "chapter" of the Code in which they are described. As an individual, you can file under Chapter 7 to "discharge" debt so that you don't ever have to pay it, or under Chapter 13 to consolidate and repay debt, often at less than 100 cents on the dollar! If the amount of debt is high or you are operating a complex business, you may file a reorganization under Chapter 11. This is the kind of bankruptcy you often hear about in the news when a major corporation files bankruptcy. If you operate a business as a sole-proprietor, the business cannot file a bankruptcy on its own as it is not a separate legel entity from you personally. You must file the bankruptcy as an individual to control the collection of both personal and business debt. Corporations, partnerships, and other types of business organizations that are separate legal entities from the owners may liquidate under Chapter 7 or reorganize under Chapter 11. Family farming organizations can consolidate and repay debt under Chapter 12, and there are other remedies for other types of organizations such as municipalities.           MOST INDIVIDUALS AND SMALL BUSINESSES FILE UNDER CHAPTER 7 OR 13.  FOR MORE INFORMATION ABOUT THESE CHAPTERS CLICK ON THE BUTTONS ON THE LEFT HAND SIDE OF THIS PAGE OR CALL US FOR A FREE INITIAL CONSULTATION WITH ONE OF OUR 2 ATTORNEYS.           Because there are important regional differences in court procedures and the interpretation and application of the law, we limit our bankruptcy practice to chapter 7 and 13 cases filed in the Eastern District of California, Sacramento Division, which serves residents of the Counties of Alpine, Amador, Butte, Colusa, El Dorado, Glenn, Lassen, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Jouquin (only zip codes 95220, 95227, 95234, 95237, 95240, 95241, 95242, 95253, 95258 and 95686), Shasta, Sierra, Siskiyou, Solano, Sutter, Tehema, Trinity, Yolo and Yuba. If you reside or have your principal place of business in this area and have questions about bankruptcy, please CALL US AT (916) 985-3330.      WARNING: BANKRUPTCY IS A COMPLEX LEGAL PROCEEDING THAT WILL AFFECT YOUR FINANCIAL FUTURE FOR AS MUCH AS 10 YEARS. IT IS A MISTAKE TO REPRESENT YOURSELF OR HIRE A TYPING SERVICE. ONLY A LICENSED ATTORNEY CAN CHARGE A FEE FOR GIVING LEGAL ADVICE. ANYONE, WITH NO LEGAL EDUCATION OR KN0WLEDGE, CAN CALL THEMSELVES A PARALEGAL, BUT THEY ARE STRICTLY PROHIBITED BY LAW FROM GIVING LEGAL ADVICE. FIXING A PROBLEM IS ALWAYS MORE EXPENSIVE THAN DOING IT RIGHT THE FIRST TIME, AND SOME PROBLEMS CAN'T BE FIXED! DON'T TAKE CHANCES WITH YOUR FINANCIAL FUTURE WHEN YOU CAN GET ADVICE FROM AN EXPERIENCED REPUTABLE BANKRUPTCY ATTORNEY.           CALL US at (916) 985-3330 for a FREE INITIAL CONSULTATION with one our 2 Attorneys.