Chapter 7 Bankruptcy Lawyer Ogden | Salt Lake City Debt Liquidation
When individuals consider consumer bankruptcy as a solution to their financial struggles, it is important that they gain the necessary information to educate themselves on bankruptcy options and procedures. One important distinction that is made in consumer bankruptcy law is between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Each type of bankruptcy is very different from the other, each has unique benefits and burdens attached to them, and each type has a unique set of qualifications. Thus, when considering your options, it is first important to determine which choices will work for you.
Understanding Chapter 7 Bankruptcy
The primary distinction between Chapter 7 and Chapter 13 bankruptcy is that Chapter 7 bankruptcy allows those who file to be released from their debt obligations, while Chapter 13 bankruptcy requires you to commit to a repayment plan. Although Chapter 7 offers release from debts, it also requires you to liquidate several of your assets. These assets will be sold in order to help fulfill your debt obligations. Certain of your assets may be exempt from this liquidation process according to Utah law.
Filing for Chapter 7 bankruptcy will immediately invoke an “automatic stay” which will put a hold on most collection rights against you. However, the stay might only be in effect for a short time, and creditors may attempt to prevent this effect on their debts.
Those filing for Chapter 7 bankruptcy will be required to prove, under something termed the means test, that their income qualifies them for this relief. Furthermore, those who qualify will be required to produce significant financial information including schedules of assets and liabilities, schedules of current income and expenditures, statements of financial affairs, a schedule of executor contracts and unexpired leases, and additional tax records.
Contact Arnold & Wadsworth
Decisions regarding bankruptcy can be very daunting and complicated. Consequences of such decisions are long lasting. You don’t need to face it alone.
At Arnold & Wadsworth we will help you weigh and analyze your individual preferences, your unique circumstances, and the required qualifications to benefit from legal resources including Chapter 7 bankruptcy. We will offer you the necessary information and support. Call today for a free consultation with one of our attorneys at (801) 475-0123.