People don’t generally plan to file bankruptcy. However, in some cases, it can be the only choice. When you fall behind in your payments, filing bankruptcy can stop the creditors’ calls, protect your assets from seizure and give you a chance to turn your life around. If you are considering bankruptcy in Utah, Attorney Zachary Holbrook can help you make the best possible decision for your financial future.
As an individual, you can typically choose between two different types of bankruptcy: chapter 7 and chapter 13. Each type of bankruptcy has its own advantages and disadvantages.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, which is also known as “liquidation,” is most appropriate for debtors who don’t have enough income to repay all of their debts in a reasonable amount of time. If you file this type of bankruptcy, your non-essential assets will be sold to repay as much of your debt as possible, and all remaining debts will be discharged by the court. At the end of the case, you will no longer be responsible for any of the debts included in the case. In order to qualify for this type of bankruptcy, you must first pass a “means test,” which is designed to ensure that you don’t have enough resources to repay everything you owe.
Chapter 13 Bankruptcy
If chapter 7 bankruptcy isn’t right for you, you may choose chapter 13 bankruptcy instead. In a chapter 13 case, none of your assets will be sold to repay your debts. However, you will be responsible for repaying all of your debts on your own over a set period of time, in accordance with an agreement you make with the court. At the end of the case, you will be free from all of your included debts. In order to qualify for this type of bankruptcy, you must have enough income to pay your debts within an appropriate amount of time.
Why Consult an Attorney?
The law surrounding bankruptcy in Utah can be complicated. To ensure that you make the best choices and have all of the resources you need to complete a successful bankruptcy, it is wise to hire an attorney who has experience in this practice area.
Attorney Zachary Holbrook understands bankruptcy in Utah, and he can help you through every step of the process. If you are thinking of filing bankruptcy, contact Zach today to learn more about our services or to schedule a consultation.