The Bankruptcy Sage
Expert advice if you are considering bankruptcy
Is bankruptcy the right move for you?
Are you struggling to make ends meet? Maybe you’re drowning in debt. Tired of dodging calls from creditors? Do you wonder if bankruptcy is a good idea? Would you like a fresh start? If you answered yes to any of these questions, you’ve come to the right place.
For most people, a chapter 7 bankruptcy wipes out their existing debts and allows them to start over. Chapter 13 helps you keep your assets while paying a portion of what you owe to creditors, including any past-due mortgage payments. That’s a very simplistic overview, but if you keep reading, you’ll learn a lot about the process of bankruptcy so you can decide if it’s the right move for you. And if you still have questions, or you want some sound advice, email me at martha@bankruptcy sage.com, and we can set up a free half-hour phone consultation.
Where can I find information about the bankruptcy process?
There are a lot of resources available on this website and other places on the internet. The first place you should look is the website for the U.S. Bankruptcy Court (https://www.uscourts.gov/services-forms/bankruptcy). Once you’ve done some research, you’ll understand that bankruptcy is a complicated process. Attempting to prepare your own bankruptcy petition and schedules can be overwhelming. Or maybe you think you’re up to the challenge.
If you want some help, check out my YouTube channel, Bankruptcy Basics by clicking on the link.
Do you want some help?
As a California attorney with over forty years of experience helping clients with bankruptcy cases, I have a deep understanding of the complex laws and regulations that govern the bankruptcy process. I have helped hundreds of individuals and businesses successfully file for bankruptcy and get the relief they need to move forward with their lives and businesses.
I do a lot more than just dump a lot of information on you and leave you to wade through it on your own. I provide bankruptcy advice and counsel to people considering bankruptcy, along with the support and guidance you need to navigate through this difficult time and come out on the other side.
I understand the emotional toll that financial hardship can take on you and your family. My goal is to not only provide you with legal advice and counsel, but also to be a supportive partner throughout the bankruptcy process.
If you are struggling with debt and considering bankruptcy, reach out for a free consultation. Get help as you take the first steps towards a brighter financial future. Email me at martha@bankruptcysage.com to set up a free half-hour consultation.
How does bankruptcy work?
Depending on your current financial situation, bankruptcy can be an complicated and confusing. And while this website takes a step-by-step approach, it probably won’t answer every question that you have. Here are the steps to get you started:
- Pull a free credit report (https://www.annualcreditreport.com) and either give it to your attorney or make a list of your creditors, including addresses, the last four digits of your account number, and approximate balance. If any creditors are missing, make sure to add them.
- Look at the means test to determine if you qualify to file a chapter 7 (liquidation) or chapter 13 (reorganization). The first step is simple: is your annual gross income above or below the median income for a family of your size in the state where you live. Here’s a link to the government information on median incomes: https://www.justice.gov/ust/eo/bapcpa/20260401/bci_data/median_income_table.htm
- If your income is above the median, then you go to step two, the means test itself. This is a difficult and highly technical task and may spell the end of your attempt to file a bankruptcy yourself. Click this link for my video detailing how to take the means test. https://www.youtube.com/watch?v=OvFv0PKoIuk
- You can fill out the paperwork yourself, get help from a petition preparer, or hire an attorney. The forms can be found on the Bankruptcy Court website: https://www.cacb.uscourts.gov/forms/petition_forms.
- Take a prepetition credit counseling course and obtain a certificate of completion: https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111 (be sure to check your state to get your local provider list).
- File your bankruptcy petition with the appropriate bankruptcy court (on the Bankruptcy Court website, enter your zip code in the “Filing Location” box). Remember that these days, the Court doesn’t take cash or credit cards for the $338.00 (chapter 7) or $313.00 (chapter 13) filing fee. You’ll need a cashiers check or postal money order (not just any money order) payable to U.S. Bankruptcy Court.
- Attend your 341(a) examination and answer the trustee’s questions regarding your assets and liabilities. These days, the 341a is usually conducted on Zoom (you’ll receive the date, time and login instructions once you file your case).
- Take a post-petition financial management course and file the certificate of completion (within 60 days after the initial 341(a) examination date): https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111 (you can generally use the same provider as you used for your prepetition credit counseling).
- Receive your discharge (usually a few days later, depending on your particular court). A few days later, your case will be closed (most cases).
Already overwhelmed? Contact me and ask for a free consultation. Email me at martha@bankruptcysage.com to set up an appointment
Here are answers to some FAQs:
What is chapter 7?
Chapter 7 is a liquidation proceeding. If you qualify, chapter 7 liquidates your non-exempt assets (most chapter 7 debtors do not have any non-exempt assets) and wipes out (discharges) your unsecured debts.
What is chapter 13?
Chapter 13 is a reorganization plan for debtors that do not qualify for chapter 7. A chapter 13 plan provides for partial repayment of debts over a 3 to 5 year period.
What is the means test?
A means test is a comparison of your actual income to average monthly expenses for your area to determine if you have sufficient income to pay some portion of what you owe to creditors. You are exempt from the means test if your income is less than the median for your state. If you are not exempt you must pass the test in order to qualify to file a chapter 7 case.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.