Which Bankruptcy is Better?
Chapter 7 VS Chapter 13 Bankruptcy
In the past, bankruptcy was viewed as the last resort and the most shameful thing that could ever happen to someone. However, these tough economic times have made it easier for people to see what financial analysts and experts have been explaining in the past. Filing for bankruptcy is a wise decision to make when you are not in a position to honor your debts.
Anyone can file for bankruptcy, when he or she feels the need to. However, not everyone can fit in the same bankruptcy chapter. The most common bankruptcy chapters are chapter 7, chapter 11 and chapter 13. Chapter 7 bankruptcy and 13 bankruptcy are the most common and most of the population fits into one of these two categories. It is important to know which type of bankruptcy you need to file in order to have the most successful outcome. This is why hiring the right bankruptcy lawyer is so important.
Chapter 7 Bankruptcy in Utah
Chapter 7 Bankruptcy is the most common category for bankruptcy. It looks at both your exempt and non-exempt assets. You will be allowed to keep your exempt assets (for example clothes and home, up to a pre-determined value) while the non-exempt assets (for example, your bank account balance and additions to an already owned asset) will be liquidated. This means that they will be sold to obtain money to pay your lenders. With proper planning and assistance from a lawyer familiar with the specifics of Utah Bankruptcy Law, you can lose very little when your assets are liquidated. Under chapter 7, you no longer have to pay for your unsecured debts after filing bankruptcy.
Chapter 13 Bankruptcy in Utah
Unlike chapter 7, which is meant for people who cannot repay their debts, chapter 13 bankruptcy caters to those who can pay their debts, but cannot do it within the stipulated time frame or required monthly payments. Most users of chapter 13 have a regular income and assets that can be liquefied. Chapter 13 is thus a legal plan that enables you and your debtors to come up with a plan that will help you honor your financial obligation to your creditors.
Dissimilar to chapter 7 where there is no room for consolidating the debt into one payment, chapter 13 allows people to consolidate monies owed into one payment. A bankruptcy trustee will keep the money and distribute it to your creditors.
It is easier to create a budget with a chapter 13 arrangement because the amount to be paid is fixed. This might prove to be a little challenging with chapter 7 bankruptcy.
Having a bankruptcy plan and someone on your side to guide you through the process is very important. At CarrLawUtah.com, we will provide expert bankruptcy advice in accordance with Utah laws. It is our goal to help ensure that you lose as little as possible if your assets are liquidated and to help ensure that truly affordable repayment plans are created with your debtors. It is highly advisable that you contact us, your trusted Salt Lake City Bankruptcy Lawyers, before any of your lenders acquire a judgment against you. For a bankruptcy attorney in Tooele, you can call us at (435) 243-7002 or you can call (801) 810-7002 for a bankruptcy lawyer in Salt Lake City. You can also email Ken Carr directly at Ken@carrlawutah.com.