As unfortunate as it might be, there are many Americans that reach the point where their accumulated debt has become impossible to handle. Once this point has been reached these people see the only logical solution to be filing for bankruptcy. There is a myriad of reasons why people find themselves in this situation; perhaps they have lost their source of income due to the current economic climate, perhaps they made poor financial decisions in the past or maybe the problem is related to a health issue. Whatever the reason is there are numerous things that must be taken into consideration. To help make these decisions it is best to speak to a bankruptcy attorney in Salt Lake City UT, this professional can guide you in the direction which will result in the best possible outcome.
Individuals can normally opt for Chapter 7 or Chapter 13 bankruptcy protection. Chapter 7 requires that the petitioner turn his or her non-exempt assets over to the court, the court in turn will dispose of the assets and use the proceeds to pay the creditors. The person who opts for Chapter 7 bankruptcy is usually one that has few assets of any value, anyone who has significant assets that they wish to keep will file for Chapter 13. Once a person that filed Chapter 7 has been given a discharge from debt by the court they are free to go about rebuilding their life from a clean slate.
There are major differences between Chapter 7 and Chapter 13 bankruptcy. As noted, in Chapter 7 all debts are discharged, this is not the case in Chapter 13. Chapter 13 bankruptcy requires that a certain amount of debt be repaid. The petitioner, along with his or her bankruptcy attorney in Salt Lake City UT will work to develop a repayment plan which is presented to the court. If the plan is agreeable to the court the debtor will be given a period of time, rarely to exceed five years to repay the agreed upon debts. In Chapter 13 the petitioner can keep all their assets.
Just because someone declared bankruptcy does not mean they are free from all debt; student loans, child support, spousal support and taxes are non-negotiable and must be paid. Although you will eventually be free of debt you will also be burdened with a less than stellar credit rating, it may take five or ten years to rebuild your credit score to the point where you can once again borrow at a decent rate.
Although declaring bankruptcy can solve many financial problems it is not a decision that should be taken lightly. You are invited to discuss your situation with the Law Office of Andrew B. Clawson, PC, a bankruptcy attorney in Salt Lake City UT. For more information visit The Utah Bankruptcy Lawyer.
