At some point in all of our lives, we will have some sort of financial problems. However, nothing beats the overwhelming process of bankruptcy and hiring an Ogden bankruptcy attorney can help. Even though there is a very negative association with bankruptcy, the process offers many people and businesses relief from financial burdens.
Those who file for bankruptcy are all generally seeking one goal–to obtain some sort of debt relief. What many people don’t understand is there is more than one way to file bankruptcy. For personal bankruptcy options, you can file under Chapter 7 bankruptcy or Chapter 13.
Differences Between Chapter 7 & Chapter 13
Many people make the mistake of thinking bankruptcy will save them from their financial struggles. The best thing you can do is to be prepared when filing bankruptcy and to make sure you hire a competent bankruptcy attorney. We can help explain the differences between Chapter 7 & Chapter 13 Bankruptcy.
Chapter 7 Bankruptcy Utah-Hire a Low-Cost Ogden Bankruptcy Attorney
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Chapter 7 is a type of liquidation bankruptcy. All nonexempt assets will be reviewed and sold off under chapter 7 Bankruptcy. The money made from the sale is then dispersed among your creditors and the bankruptcy court discharges any remaining balance of unsecured debts. Many people with a large amount of medical and credit card bills (unsecured debt) are more likely to file their bankruptcy case under Chapter 7. Overall, Chapter 7 seems to be the most common bankruptcy method.
Chapter 7 is often more appealing because it offers immediate debt relief once their nonexempt assets are sold. If you have very little non-exempt properties, then your creditors almost get nothing. It is important to remember only unsecured debts are discharged. On the other hand, If you have secured debts like a home or car loan, you will either have to continue paying per your contract or part with them.
Chapter 7 is a favorable option for people with minimal properties or those whose dischargeable debt is larger than their nonexempt assets. However, only debtors whose income equals or is under the income threshold can qualify. Keep in mind, those who earn over the set state amount may have to file under Chapter 13.
Chapter 13 Bankruptcy Utah
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While filing for Chapter 7 will liquidate your assets and pay your debtors, Chapter 13 will only buy you more time to settle your debts. Chapter 13 is a great bankruptcy option for those who can afford a debt repayment plan. During a chapter 13 bankruptcy, the court will add up all your secured and unsecured debts and set up a 3-5 year monthly repayment plan. Chapter 13 can be a great debt relief option for those who do not qualify for Chapter 7. It is also a helpful way for people to get caught up on missed mortgage or car payments without having to sell any assets.
Hiring An Ogden Bankruptcy Attorney in Ogden
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Both Chapter 7 and Chapter 13 are great debt relief options from any financial crisis. Chapter 7 offers almost immediate debt relief, while Chapter 13 provides repayment options to avoid foreclosure. Even though both bankruptcy options provide financial relief there are downsides. Consequently, you will see a decline in your credit score whether you file for Chapter 7 or Chapter 13 bankruptcy. This will ultimately affect your ability to qualify for many types of loans and result in higher interest rates.
Filing for bankruptcy can be overwhelming and a very complicated process. Because of this, it is a good idea to hire a professional bankruptcy attorney. Not only will this help you attain peace of mind, but it will also help you determine which bankruptcy is right for you. Choosing to file for bankruptcy in Utah is a big decision and having an experienced bankruptcy attorney to help will make all the difference. A Bankruptcy attorney will be your best bet to get the debt relief you need during your current financial crisis. You have a chance to become debt-free! Give BDJ Express law a call today at (801) 394-2336.