Bankruptcy does have an effect on a person’s financial state. Despite this, filing bankruptcy often provides a necessary fresh start for individuals experiencing financial problems and difficulty repaying debts. An experienced and qualified bankruptcy attorney may help reduce stress and uncertainty by providing valuable assistance throughout the entire bankruptcy process.
The language of § 541 of Title 11 provides that any bankruptcy case filed voluntarily, involuntarily, or jointly creates an estate. As defined by federal law, a “bankruptcy estate” is comprised of most of a debtor’s legal and equitable interests as of the filing of the bankruptcy petition.
Federal law applies the best interest of creditors test to determine the minimum amount a bankruptcy debtor must pay unsecured creditors in a Chapter 13 repayment plan. The determination of this amount is made by examining the debtor’s liquidation of assets as if he or she filed a Chapter 7 bankruptcy case. Chapter 7 bankruptcy trustees are empowered to sell or liquidate the property in a debtor’s bankruptcy estate to pay general unsecured creditors for any outstanding debts owed to them.
Debtors may exempt property which excludes it from their bankruptcy estate and thus prevents its liquidation by the trustee. As this is an important, if not vital, analysis since it determines what property a debtor may keep, Alberto Montefalcon and his experience may be invaluable to anyone who needs to make this determination.
Don’t let the stigma of bankruptcy keep you from solving your financial problems! Alberto Montefalcon is here to assist you if your financial position necessitates the consideration of a bankruptcy case filing under Chapter 7, 11, or 13. Schedule a consultation at any of our three conveniently located offices. Contact the experienced Sacramento metropolitan area/Northern California attorneys at the Montefalcon Law Offices. Contact us online or schedule a free consultation at any of our three conveniently located offices. Telephone our downtown Sacramento office at (916) 444 0440, our south Sacramento office at (916) 399-9944, or our Concord office at (925) 222-5929.