We’ve all been through some pretty harsh financial times recently and it’s safe to say that we have all been affected by them to one degree or another. Even some of the largest corporate icons have been brought to their knees. If you have become one of the victims of the financial downturn, you have plenty of company. But don’t despair; situations like yours are exactly why the bankruptcy laws were originally put into place. Filing for bankruptcy used to be like the scarlet letter in the financial community, but fortunately, those times are gone and bankruptcy is looked on as a legitimate option for dealing with debt that has become economically untenable.
An experienced Bankruptcy Attorney in Salt Lake City will be happy to meet with you to discuss your financial situation and help determine if bankruptcy is the right choice for your particular set of circumstances, and if so, which type of bankruptcy will be most to your advantage. Chapter 7 and chapter13 bankruptcies are both available to individuals, but they come with different rules and are used in different situations. Your attorney will explain the differences and why one is better than the other for your case.
Chapter 7 bankruptcy, sometimes referred to as “Full Bankruptcy”, is usually the appropriate choice when your debt has become so overwhelming that you no longer have any reasonable prospect of ever paying it off, considering your current financial circumstances. This may entail liquidating some of your assets, but there are exemptions as to what can and can’t be liquidated. The actual amount you pay your creditors will be negotiated between your attorney and the court.
Chapter 13 bankruptcy can be a viable option if you are heavily in debt, but are still able to manage your day to day living expenses, just not your outstanding debts. This requires that you agree to a payment plan set up by the court where you will repay a portion of your debt, but a part of it will be discharged. This arrangement will be negotiated by your attorney. This may stop any repossessions or foreclosures, as well.
Should the time come when you are seriously considering bankruptcy, but you need a free consultation to see if it is the right choice for you, attorneys at Lewis Adams & Associates will be happy to speak with you.