BANKRUPTCY Bankruptcy is a legal proceeding filed in the U. S. Bankruptcy Court pursuant to a federal law, the Bankruptcy Code. The purpose of filing a bankruptcy is to stop creditors from collecting debt. When a case is filed, the law provides that a restraining order, called "the automatic stay", immediately goes into affect. The stay 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! 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 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 you hear about in the news when a major corporation files bankruptcy. If you are operating a business as a sole-proprietor, the business cannot file on its own. You must file as an individual to control the 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. Because there are important regional differences in court procedures and the interpretation and application of the law, I limit my 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 principle place of business in this area, and have questions about bankruptcy, please CALL ME NOW at (916) 920-3360. 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 ME at (916) 985-3330.