Friday, 3 November 2017

When To File A Chapter 7 Salt Lake City Utah

By Thomas Schmidt


If you ever find yourself with unmanageable levels of debt, you should consider seeking bankruptcy protections. There are legal provisions to assist consumers like you to get rid of their bad debts to ensure you can start life afresh and free of debt. After all, you should not have to live a life weighed down by bad debt. For instance, you can file a chapter 7 Salt Lake City Utah to have your debts forgiven.

When you do not service your debts according to the terms and conditions you agreed to, you may incur penalties and other fees that can increase the outstanding balance exponentially. As a result, you may find yourself with a lot of debt that you may not be able to settle. For this reason, it may be a great idea to consult an experienced attorney to help you brainstorm ways for settling your debt.

Chapter 7 is the most commonly used type of bankruptcy by businesses and consumers. This is largely due to the fact that any debtor can qualify for this option. The only requirement is having a lot of bad debt with no way to pay it off.

This option provides for liquidation of property to pay off bad debts. Any non-exempt asset owned by the debtor is sold off to get funds to settle their debts. Once creditors get a portion of their debt back, the debtor will be discharged of all other unpaid debts. If you have few assets, you can have your debts settled with a few cents for every dollar owed.

Getting professional advice before making important decisions, such as filing for bankruptcy, is always recommended. Before you decide to file the necessary paperwork, for instance, your lawyer will tell you about all the pros and cons of the process. The lawyer will also ensure that no asset that is exempt from liquidation is sold.

Anyone who has a stable job with a decent income cannot qualify for a chapter 7. This is because, the court may decide to declare them bankrupt under chapter 13. After all, the former is only meant for insolvent businesses and individuals who do not have a reliable source of income. It is the job of the trustee to help the court make the right decision.

When you file for bankruptcy, the court will protect you from creditors. Your creditors will be barred from communicating with you in any way, so you will get some peace and quiet in your life. Furthermore, the debt will be frozen, which means that it cannot increase any further.

Before you apply for bankruptcy, it is important you prepare for the consequences. For instance, your credit rating will be damaged, so you will not be able to qualify for an affordable loan. Renting a house or car will also become a big challenge. Any firm that may be willing to give you a loan will charge an exorbitant interest rate, which may not be good for your financial health.




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