Although the word “bankruptcy” can strike fear into the heart of most individuals, it doesn’t carry the stigma it once did. It is now being regarded more as what it is; a practical method of dealing with debt that has become more than your current circumstance can support. In challenging economic times a bankruptcy may be the only course that makes sense.
The first step is to locate legal counsel who has experience in this very complex and ever-changing area of the law. A Bankruptcy Attorney in Salt Lake City who has become intimately familiar with both chapter 7 and chapter 13 bankruptcy will be a real asset. They will look at your current circumstance and decide which path makes the most economic sense for you. They may even decide that a plan other than bankruptcy is called for.
A chapter 7 bankruptcy, also known as a full bankruptcy can help you if you are completely overwhelmed by your debt and have no reasonable hope of paying it off, based on your current financial circumstances. Some of your assets may be sold off in order to pay your debt, but there are a number of exempt assets that cannot be touched. The amount you pay your creditors is usually less than the outstanding balance, but this is a negotiation to be handled by your legal representative and the court.
Chapter 13 bankruptcy is geared toward individuals who are heavily in debt, but who are currently able to meet their day-to-day expenses, but are not able to pay off their debts. In this process your creditors work with your Bankruptcy Attorney in Salt Lake City in order to create a court-approved plan where a percentage of debt is discharged, and you are liable for the remainder. One of the biggest advantages of this type of plan is that it protects you from losing your home or other property.
Bankruptcy isn’t the mark of shame it once was. The key is to select the correct legal representatives to help you through this sometimes confusing process. With legal assistance, the majority of debtors can rebuild their credit within 3 years. If you are fortunate, you will be one of those. Contact Lewis Adams & Associates to hire experienced bankruptcy attorneys to handle your bankruptcy cases in Salt Lake City, UT and the surrounding areas.