Salt Lake Bankruptcy lawyer : Bankruptcy is a state of complete lack of some abstract property; “spiritual bankruptcy”; “moral bankruptcy”; “intellectual bankruptcy”. Bankruptcy is an inability to discharge all your debts as they come due; “the company had to declare bankruptcy”; “fraudulent loans led to the failure of many banks”.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is frequently called a “fresh start” or “liquidation bankruptcy”. Chapter 7 Bankruptcy is a fresh start bankruptcy because that is what you receive…a fresh start. With the exception of certain non-dis-chargeable debts, most of your debt is discharged (erased) in a Chapter 7. Chapter 7 Bankruptcy is also a liquidation bankruptcy because any non-exempt asset that you have may be take and sold by the Chapter 7 trustee. The Chapter 7 trustee liquidates your non-exempt assets and returns what money she receives from the liquidation of those assets to your creditors. Utah has exemptions which protect certain assets from liquidation. These exemptions may or may not have dollar limits and include such things as a home, beds, washer/dryer, clothes and others. These exemptions can be discussed in more detail by calling (801) 244-2463 and scheduling your free consultation.
Chapter 7 Bankruptcy is not for everyone. If your average gross monthly income exceeds the median income for a family of your size in Utah, you may not qualify for a Chapter 7 Bankruptcy. Additionally, if you have assets that you do not want liquidated, you may not want to file a Chapter 7 Bankruptcy. If a Chapter 7 Bankruptcy will not achieve your desired goals, Chapter 13 Bankruptcy may be a better option.
A Chapter 13 Bankruptcy Is Often a Viable Option
Chapter 13 Bankruptcy is a great option several reasons. Similar to a Chapter 7 Bankruptcy, a Chapter 13 Bankruptcy also stops creditor harassment, garnishments, foreclosures and other attempts to collect debt. A Chapter 13 Bankruptcy provides a tool for paying back a part of your debt. In a Chapter 13 Bankruptcy you can cure mortgage arrears ages over time, you may be able to “cram down” the debt on your vehicles so that you pay what the vehicle is worth instead of what you owe on the vehicle, and you can include taxes in the Chapter 13 payment plan.
Another benefit to a Chapter 13 Bankruptcy is that Chapter 13 Bankruptcy is not a liquidation bankruptcy. This means that the Chapter 13 trustee is not going to take assets from you. Payment to creditors is based upon a monthly payment that you make to the Chapter 13 trustee and not on the liquidation of your assets.
Finally, if your gross monthly income exceeds the median income for a family your size in Utah, you may not qualify for a Chapter 7 Bankruptcy and would need to file a Chapter 13 Bankruptcy.
Leave the Guesswork to the Experts
Lawyer Know Exactly How to Handle your Case
Contrary to many Internet rumors, filing for bankruptcy is definitely not something that you should try to do on your own or with only the assistance of a bankruptcy petition preparer. Your income and everything you own may be at risk in a bankruptcy. The amount you pay a competent attorney is tiny when compared to what you stand to lose if the bankruptcy is improperly done. There are many decisions that need to be made on your behalf. There is a lot of paperwork that needs to be filed with the court to protect your rights and insure proper protection of your income and assets.
You will be required to provide income tax returns, car titles and other financial information. You will need to follow the numerous guidelines that the Utah and Federal Laws require regarding your exemptions and adhere to the schedule that is designed specifically for you. Because of our vast experience, we can make this entire process as easy and painless as possible, placing most of the legal burden on us. This is precisely what we do and what we have been doing for our clients for over a decade!
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Scott Blotter: At the Law Office of Scott Blotter, we’ve been helping people out of financial hardship for over 10 years and have been designated by the United States Congress as a “Debt Relief Agency” helping people file bankruptcy and get out of debt.