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. Our Pacific Legal Group 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.
As Utah bankruptcy attorneys clients trust can empathize with, life can get difficult, and not everyone feels confident about their finances. Especially in recent years, for many people, their goal has just been to stay above water. Most people have debts that weigh on their shoulders every day, but that doesn’t mean they have to rush into filing for bankruptcy either. Other strategies for financial management should be attempted, and if that doesn’t work, bankruptcy may be the best path to take. Deciding to file bankruptcy is a personal choice that someone must make for themselves, as there are pros and cons to consider. If you are not sure if filing for bankruptcy should be the next step for you, here are some signs that it might help.
One of the main reasons that people think about filing for bankruptcy is because they spend more money than they are able to earn. If your expenses each month total more than what you make, then you may be slowly getting yourself into a serious financial situation. Even without having to look deeply into your bank statements, you probably know if this balance between expenses and earnings is off. If you don’t expect to have a wage increase in the near future, then it may be time to realistically consider the option of filing for bankruptcy with help from one of our Utah bankruptcy attorneys.
Do you put off routine care, such as buying eyeglasses, getting a dental check-up, purchasing new tires, or another life essential because of your finances? It’s important to take care of yourself, your home, and your health. If you put off paying for things that keep you healthy, you could end up dealing with worse issues in the future. Or if you constantly use credit cards to pay for essentials, then that may be a sign that your finances could use some help. If you are not able to afford costs for routine care, then you ultimately may not be able to pay it off once it’s put onto your credit card.
If you think about your debts every single day, and they weigh heavily on your mental health, then this means your finances could definitely use a re-evaluation. For many people, their debts affect their confidence and make them feel like there is no way out. As Utah bankruptcy attorneys from Pacific Legal Group can discuss with you, bankruptcy may be suitable if all other options have been exhausted, and you just need some financial relief. Depending on the type of bankruptcy status you file for, not all of your debts may be discharged. For this reason, we encourage people to contact our law firm for further guidance, as there are six chapters to choose from, and picking the right bankruptcy filing for you will be paramount.
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.