Filing bankruptcy is a complex and detailed process that can leave the average person with quite a few questions that need to be answered. In this article, we are going to answer three of the question that your Bankruptcy Attorney Salt Lake City is asked frequently in order to help you make the decision about whether or not this is the appropriate choice for you and your situation.
What is the difference between Chapter 7, 11, and 13 bankruptcy?
Many people assume that bankruptcy simply wipes out all the debts that a person owes, but that is not necessarily true. Bankruptcy is an opportunity to get yourself out of debt, either in a ‘clean slate’ situation or by reorganizing your debt. Your Bankruptcy Attorney Salt Lake City will be able to advise you about which Chapter of bankruptcy is best suited to your situation.
Chapter 7 bankruptcy is the ‘clean slate’ of bankruptcy. It can result in all of your debt being discharged, or ‘forgiven’, but often means that you must sacrifice and return some of your personal property.
Chapter 11 bankruptcy is often used by businesses that wish to remain in business. If you are a small business owner wanting to keep your business but needing relief from creditors, your Bankruptcy Attorney Salt Lake City can walk you through the process of filing Chapter 11 bankruptcy.
Chapter 13 bankruptcy can be filed by qualifying people. Chapter 13 usually allows your to keep the majority of your personal property, because it is not a quick fix. Chapter 13 bankruptcy involves your debt being combined and you making payments over the course of three to five years.
What else you should be aware of.
When you and your Bankruptcy Attorney in Salt Lake City file your bankruptcy case, an automatic stay is placed on your credit. This requires your creditors to stop all collection procedures and activities, including calls, letters, foreclosure proceedings, repossessions, wage garnishments, and other forms of debt collection. This can offer you immediate relief from creditors, but is not a permanent fix because this can, and most likely will, be lifted for some creditors. Be sure to consult with your Bankruptcy Attorney Salt Lake City about getting immediate relief from your creditors and their constant contact. Visit Lewis Adams & Associates to hire professional bankruptcy attorneys for bankruptcy cases in Salt Lake City, UT.