The ever increasing economic difficulties, being faced by individuals worldwide has led to some of them filing bankruptcy as they are no longer able to pay back previous loans that they had taken during brighter days. The need for Utah bankruptcy attorneys has emerged as a result, as more individuals turn to this last resort to ease the pressure experienced from the financial obligations that they may have. It is essential that an individual be well informed of the bankruptcy process should they be considering it. This helps ensure a smooth and successful transaction of the procedure.
Types of bankruptcy
There are different types of bankruptcy that are available, and individuals can be informed on the most appropriate form for them by their bankruptcy lawyers in Utah. The different types that exist include:
Chapter 11 bankruptcy – This bankruptcy is usually filed by organizations and companies. With this type of bankruptcy, the business is able to maintain operations and ownership of all assets belonging to the business, and the debtor is allowed to come up with a plan on how they will pay back their creditors. A time limit of 120 days is imposed on the debtor in which to come up with a suitable plan after which the creditor is allowed to come up with their own plan, which the debtor will be expected to follow until all debt has been cleared.
Chapter 7 bankruptcy – Common form of bankruptcy in Utah and it involve the basic liquidation of the debtor’s assets in order to pay off the debts incurred. This form of bankruptcy, however is preferable for most businesses as it means or contemplates the death of the company.
Chapter 12 bankruptcy – This is designed specifically for owners of farms and one is able to hire Utah bankruptcy attorneys to work out the repayment plans that are required with this form of bankruptcy in Utah. They are designed for farmers or fishermen who may have suffered an unexpected loss due to natural conditions beyond their control such as floods or hurricanes.
Chapter 13 bankruptcy – This form of Utah bankruptcy is similar to chapter 13 but involves individuals instead of businesses. The debtor is able to retain all their possessions and design a plan to pay off the creditor over a period of time usually 3 to 4 years. However, there are limits to this type of bankruptcy in regards to the amount of debt involved.
Things to consider when choosing Utah bankruptcy lawyers
There are a number of factors that individuals facing bankruptcy in Utah should consider when deciding on the Utah bankruptcy lawyers to hire, these factors include elements such as;
Cost – The cost of the Utah bankruptcy lawyers hired should be affordable for the individual. There are a number of bankruptcy lawyers in Utah and one should not have a difficult time in finding one with affordable charges.
Qualifications – The bankruptcy lawyers in Utah hired should be qualified individuals to ensure that they individual is able to receive the most professional services possible.