Chapter 7 bankruptcy allows people to liquidate their assets and use the proceeds to pay their creditors. The typical candidate for Chapter 7 is an individual that earns very little, has little or no equity in a home, very few assets and a considerable debt load. Basically, Chapter 7 allows people that fall into this group to be given the opportunity to start over. Although it may sound simple, it is not, the process is complex and it is always a good idea to hire a knowledgeable bankruptcy attorney in South Jordan to guide you through the process and they will also explain the legal aspects and consequences of bankruptcy.
How chapter 7 works:
Typically, once a person has decided to declare Chapter 7 they must attend a credit counseling course first, they are also obliged to attend a course on financial management once the process is completed. If you meet all the stipulations such as passing the means test and collecting all the supporting documentation demanded by the court you can file. Once you have filed a trustee will arrange to dispose of all non exempt assets. Utah law provides protection of certain property from creditors. Your bankruptcy attorney in South Jordan will provide you with guidance on what are exempt and what isn’t.
There are also debts that cannot be discharged after filing for Chapter 7; these debts include child support, alimony, any student loans outstanding and certain tax obligations. The bankruptcy judge has the right to declare other debts as non-dischargeable; these may include debt incurred by fraud, breach of trust as well as cash loans and credit purchases in excess of $1150 that were made within 60 days of the bankruptcy filing date.
In Utah you might be able to keep secured debt such as your home or vehicle if you reaffirm the debt, according to Brian Anderson of Anderson Law in Kennewick, WA. If you do this you are obliged to make the debt current and continue to pay as usual for at least eight years. Contact ABC Law in Utah for more information. Visit The Utah Bankruptcy Lawyer.
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