Making an informed decision when it comes to bankruptcy is important. If you file yourself, a small mistake could cost you more money than you have. The attornies at Bankruptcy of Utah are here to help you and guide you through the process and make the right decision.
What is Chapter 7?
Chapter 7 bankruptcy allows you to erase some of your debts. Usually, it is an option for people with limited income. If you make more than a certain amount you will need to file for Chapter 13. When filing for Chapter 7 you will be given the option to liquidate the debt and completely erase it, allowing you to move on and be free of the burden. Remember that with Chapter 7, assets are taken and sold to help pay off current debts. If you are wanting to keep your cars, home, and other assets, ask one of our attornies if you qualify to file for Chapter 13. This would allow you to make payments on your debts while also staying current with upcoming payments.
How Does Filing for Bankruptcy Impact Me?
When filing for bankruptcy it is important to consider potential long term consequences. For example, bankruptcy will stay on your credit report for 10 years and will have a great impact on your credit score in a bad way. However, over time as long as you don’t fall into the same trap of bankruptcy again the impact on credit reports becomes smaller and smaller. Having a bankruptcy on your credit report can result in potentially having trouble renting and buying homes, purchasing vehicles, and opening new lines of credit.
Making the decision to file for bankruptcy is the hard part. After you have worked through the process and have begun rectifying the problem, you will feel freedom and eventually you will fully recover as long as you stay vigilant in your spending you will be okay. Many people have become successful after bankruptcy and you can too. Talk with your attorney to determine how to best file for your particular situation. One main difference between Chapter 7 and Chapter 13 bankruptcies is your assets and what happens to them. In Chapter 7 they are sold to help pay down your debts whereas in Chapter 13 you keep your assets and begin paying them off in payments in addition to current payments due. Bankruptcy will hit your credit report and will stay there for ten years so be sure that when you file you are aware of how it can impact you through the years until it falls off your record.