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 a legal provision that makes it possible for debtors with unmanageable levels of debt to get rid of their debts. It can be voluntary or involuntary. In case of the former, the debtor files a petition in court to get legal protection. In case of the latter, creditors rush to court to seek the intervention of the court in their debt problem.
There are several chapters that a person can use to have their debts written off. Chapters 7 and 13 can be used by individual debtors to have their debts forgiven. On the other hand, chapters 7 and 11 can be used by corporate, business or organizational debtors to settle their debts. Depending on your needs, be sure to choose the right option.
Getting legal advice when you are about to use the law to get debt forgiveness is highly recommended. This is because you may not even know how the process works. Therefore, you have to find a competent attorney to advise you. The ideal lawyer must have years of experience representing clients in similar situations. This will help to ensure that you get the best advice possible.
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.
Before you can be declared bankrupt and enjoy all the legal protections and benefits that come with this legal provision, you will need to draft a plan on how you plan to settle the debt. You will only be discharged of your debt obligations if you honor the terms of that agreement. If not, your assets will be liquidated under chapter 7 bankruptcy. The trustee will sell all non-exempt assets to get funds to offset your debts.
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.
Student loan debts are never subjected to bankruptcy proceedings. Similarly, child and spousal support payments must be paid whether or not you are bankrupt. Consumers should keep this in mind when seeking to become bankrupt. While a large portion of your debt will be written off, you will still be required to pay all the other debts that are not subject to these proceedings.
Bankruptcy is a legal provision that makes it possible for debtors with unmanageable levels of debt to get rid of their debts. It can be voluntary or involuntary. In case of the former, the debtor files a petition in court to get legal protection. In case of the latter, creditors rush to court to seek the intervention of the court in their debt problem.
There are several chapters that a person can use to have their debts written off. Chapters 7 and 13 can be used by individual debtors to have their debts forgiven. On the other hand, chapters 7 and 11 can be used by corporate, business or organizational debtors to settle their debts. Depending on your needs, be sure to choose the right option.
Getting legal advice when you are about to use the law to get debt forgiveness is highly recommended. This is because you may not even know how the process works. Therefore, you have to find a competent attorney to advise you. The ideal lawyer must have years of experience representing clients in similar situations. This will help to ensure that you get the best advice possible.
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.
Before you can be declared bankrupt and enjoy all the legal protections and benefits that come with this legal provision, you will need to draft a plan on how you plan to settle the debt. You will only be discharged of your debt obligations if you honor the terms of that agreement. If not, your assets will be liquidated under chapter 7 bankruptcy. The trustee will sell all non-exempt assets to get funds to offset your debts.
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.
Student loan debts are never subjected to bankruptcy proceedings. Similarly, child and spousal support payments must be paid whether or not you are bankrupt. Consumers should keep this in mind when seeking to become bankrupt. While a large portion of your debt will be written off, you will still be required to pay all the other debts that are not subject to these proceedings.
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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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