Chapter 7 bankruptcy can be a good option for people who have excessive amounts of unsecured debt and are finding it difficult to keep up with the minimum payments. Unsecured debt is any debt that is not backed by any type of collateral. Examples of unsecured debt include credit cards and medical bills.
One of the main advantages of filing for Chapter 7 bankruptcy in Salt Lake City is the relatively short time it takes to complete the process. Some Chapter 7 filings can be completed in as little as 120 days where a typical Chapter 13 filing can take up to five years. The main disadvantage to Chapter 7 bankruptcy is that you may be at risk of losing some of your personal property in order to repay your creditors.
One of the most common misconceptions about Chapter 7 bankruptcy is that you will lose everything you own. The purpose of the law is not to wipe you out completely so your creditors can get paid. The purpose of the law is to provide the debt relief you need to move on with your life. Bankruptcy law allows you to keep certain critical property necessary to live a normal life, including a home, car, household goods and tools of your trade.
Chapter 7 bankruptcy can involve the liquidation of certain nonexempt property to repay your debt to creditors. The trustee will look for assets that can be sold at auction in order to raise funds for repayment. If your trustee decides that you don’t have any property that can be sold, your bankruptcy would be declared a “no asset” case. In a no asset case, you would lose no property and would move directly to the discharge phase of the proceeding.
At the Salt Lake City law office of Justin M. Myers, Attorney-at-Law, LLC, we have helped many clients obtain the debt relief they needed to get back on the right financial path. From the moment a client visits for their free initial consultation, our legal team will address any of your questions and concerns.We dedicate our entire practice to bankruptcy law and work diligently in the courtroom and behind the scenes to see that the entire process goes smoothly.
Along with a bankruptcy petition and supporting documentation, people filing for Chapter 13 bankruptcy will also need to include a preliminary repayment plan which is usually developed during credit counseling. After the creditors meeting you will attend a meeting to confirm your repayment plan. Once your repayment plan has been successfully completed, you will receive a discharge of your debts.
A The means test measures your disposable income against that of other Utah citizens and ensures that your application for bankruptcy is not an abuse of the system.
After the creditors meeting has been completed, the trustee will identify your exempt property and your nonexempt property. Your nonexempt property may be sold at auction and the funds used to repay your creditors. If your trustee decides that none of your property can be sold, you would lose nothing.
After the funds, if any, have been distributed to your creditors, you will receive a discharge and will no longer have any personal responsibility for those debts.
It can be easy for even the most responsible person to fall into overwhelming debt. But does not have to be impossible to get out. The first step is to seek representation from a Salt Lake City bankruptcy attorney with a track record of protecting the rights of clients and looking out for their best interests. Contact our office today to discuss your bankruptcy questions with a lawyer. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at 801-505-9679 or via e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.