The vast majority of consumers have some debt in one form or the other. The most common types of debt are credit card debts and student loans. Others are mortgages, car loans and personal loans among others. Life can be challenging if you cannot access any type of debt. However, things can be much worse if you have accumulated a lot of debt that you are not able to service. In such a case, you may have to file a chapter 13 bankruptcy Utah.
Bankruptcy is provided for under the law. It is meant to help consumers and corporate debtors who are not able to settle their debts. It is also meant to help creditors to recover their debts from defaulters. There is voluntary as well as involuntary bankruptcy. When you need the protection of the court, you can file for bankruptcy voluntarily.
Businesses and organizations that have unmanageable levels of debt can only use chapters 11 and 7 to get rid of their debt. Chapters 13 and 7, on the other hand, are perfectly suited for individual debtors. Since these two options have pros and cons that you may want to know of, it is important you do your research before making a decision.
It is important for you to consult a lawyer when considering this legal option. A competent lawyer can advise you accordingly and help you with the paperwork. They can even represent you in court as well as give you tips on how to get the kind of outcome you want. Ideally, you should search for the most experienced lawyer in town.
Chapter 13 basically makes it possible for the debtor to restructure their debts. After adding up the total qualifying debt, the debtor is only required to come up with a plan to settle the debt with simple monthly installments for a certain number of years. The installments are based on the ability of the consumer to afford the payments. This means that a person can pay just $200 monthly to pay off a debt of $200,000 over a period of around 5 years. The unpaid amount is usually written off.
A key point to note about bankruptcy is that chapter 7 is the default option. Whether you are declared bankrupt under chapters 11 or 13, and you default on the terms and conditions, the trustee will start liquidating your assets to get the funds needed to settle a portion of your debt. Therefore, you need to take steps to ensure that you are in a position to meet your monthly payments.
When you become bankrupt, there are some things that you will not be able to do. For instance, you will not be able to access cheap credit facilities. You will also have a hard time renting a car or house. In fact, you may not be able to get a better job as most people do not want to associate with bankrupt individuals.
When seeking to become bankrupt, every debtor should know that there are certain debts that cannot be forgiven when they become bankrupt. The most notable is student loan debt. This must be settled whether or not you are able to pay. In fact, the only way the debt can be forgiven is if you die. Other debt obligations that must be honored are; child support payments and spousal support payments.
Bankruptcy is provided for under the law. It is meant to help consumers and corporate debtors who are not able to settle their debts. It is also meant to help creditors to recover their debts from defaulters. There is voluntary as well as involuntary bankruptcy. When you need the protection of the court, you can file for bankruptcy voluntarily.
Businesses and organizations that have unmanageable levels of debt can only use chapters 11 and 7 to get rid of their debt. Chapters 13 and 7, on the other hand, are perfectly suited for individual debtors. Since these two options have pros and cons that you may want to know of, it is important you do your research before making a decision.
It is important for you to consult a lawyer when considering this legal option. A competent lawyer can advise you accordingly and help you with the paperwork. They can even represent you in court as well as give you tips on how to get the kind of outcome you want. Ideally, you should search for the most experienced lawyer in town.
Chapter 13 basically makes it possible for the debtor to restructure their debts. After adding up the total qualifying debt, the debtor is only required to come up with a plan to settle the debt with simple monthly installments for a certain number of years. The installments are based on the ability of the consumer to afford the payments. This means that a person can pay just $200 monthly to pay off a debt of $200,000 over a period of around 5 years. The unpaid amount is usually written off.
A key point to note about bankruptcy is that chapter 7 is the default option. Whether you are declared bankrupt under chapters 11 or 13, and you default on the terms and conditions, the trustee will start liquidating your assets to get the funds needed to settle a portion of your debt. Therefore, you need to take steps to ensure that you are in a position to meet your monthly payments.
When you become bankrupt, there are some things that you will not be able to do. For instance, you will not be able to access cheap credit facilities. You will also have a hard time renting a car or house. In fact, you may not be able to get a better job as most people do not want to associate with bankrupt individuals.
When seeking to become bankrupt, every debtor should know that there are certain debts that cannot be forgiven when they become bankrupt. The most notable is student loan debt. This must be settled whether or not you are able to pay. In fact, the only way the debt can be forgiven is if you die. Other debt obligations that must be honored are; child support payments and spousal support payments.
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You can find a summary of the benefits you get when you consult a Chapter 13 bankruptcy Utah attorney at http://www.bankruptcyutah.com/about right now.
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