Utah Bankruptcy Attorneys
If you’re thinking about filing for bankruptcy, it’s important to consult Utah bankruptcy attorneys. Bankruptcy is a complicated process, so you don’t want to go through it alone. An attorney can guide you through the process and prevent you from making costly mistakes.
Difference Between Chapter 7 and Chapter 13 Bankruptcy
There are two types of bankruptcies: Chapter 7 and Chapter 13. Each option comes with its own positives and negatives.
Chapter 7 requires you to liquidate your assets to pay off your debts. Once the process is finished, you won’t have a repayment plan. This type of bankruptcy is ideal for low-income individuals who may not be able to afford a repayment plan. In Chapter 7 bankruptcy, you may be able to keep exempt property, such as your home and vehicle.
Chapter 13 aims to clear debt through a repayment plan over a three to five year period. This may be a better option for those with good incomes who can afford a repayment plan. With Chapter 13 bankruptcy, you typically only pay a portion of your debts. Secured debts, like taxes and student loans, must be paid in full while unsecured debts, like medical bills and credit card bills, are only partially paid off.
If you’re having trouble deciding between Chapter 7 and Chapter 13 bankruptcy, Utah bankruptcy attorneys may be able to help.
How Bankruptcy Can Affect Your Credit Rating
A concern many people have about bankruptcy is how it will impact their credit rating. The truth is that bankruptcy can stay on your credit report for up to 10 years. However, you can start rebuilding your credit sooner than you think. For example, if you can’t get approved for regular credit cards right away, you can apply for a secured credit card. After you make timely payments for a while, your credit score may go up and you may be eligible for other loans.
Preparing for Your First Meeting with a Bankruptcy Lawyer
If you’re going to your first meeting with a bankruptcy lawyer soon, it’s important to be prepared. Remember to bring the list of documents your lawyer requests, such as your tax returns, bank statements and pay stubs.
Also, be prepared to answer several questions, such as how much money you earn every year and what types of assets you have. Your lawyer may also want to know if you owe any back taxes and if creditors have judgments against you.
Schedule a consultation with Utah bankruptcy attorneys today.