If you are struggling with debt, bankruptcy can help you get your financial house in order so that you can ring in the new year with a clean slate and a positive outlook.
In Utah, a fresh start is possible through bankruptcy, but it isn’t the right decision for everyone.
Is filing for bankruptcy now the best solution for your financial woes?
Which Debts Make You Think about Filing for Bankruptcy?
Do you have piles of medical bills you can’t afford to pay? Or are you stressed about mounting credit card debt or steep payday loans? Bankruptcy can give you relief from all of these.
Are you concerned about car repossession or home foreclosure? Filing for bankruptcy can help with these debts as well, although you must continue making your payments to keep your real property and vehicles.
Unfortunately, bankruptcy cannot wipe out all types of debt. Filing may not be the answer if you’re looking for help with student loans, back taxes, alimony or child support.
Have You Considered Alternatives to Bankruptcy?
Filing for bankruptcy isn’t always the best course of action for dealing with debt. Sometimes, taking an alternate approach can make more sense.
If you have some income, just not enough to pay all of your bills, you could consider negotiating with your creditors rather than filing for bankruptcy. Through negotiation, you may be able to lower your monthly payments or settle your debts for less than the total owed.
But what if you are not comfortable with the idea of calling your creditors and negotiating?
A nonprofit credit or debt counseling agency can negotiate on your behalf, creating a repayment plan that works for you. Make sure to choose a reputable agency, however. Check the website of the Office of the U.S. Trustee for government-approved organizations.
What Will Happen After You File for Bankruptcy in Utah?
Are you being harassed by bill collectors or bombarded by threatening letters and phone calls demanding payment? Are you worried about a wage garnishment? As soon as you file for bankruptcy, all of that will stop immediately.
The court will issue what’s known as an automatic stay, which serves as notice to your creditors that you filed. They aren’t allowed to contact you to try to collect a debt after a stay has been granted.
After your bankruptcy discharge, your credit score won’t be strong. However, if you’re thinking about filing, your score may not be all that great, anyway. And if you follow the recommendations from your mandatory debtor education course, you’ll soon be back on more solid financial footing.
With the right budget plan, you can successfully rebuild your credit after bankruptcy. And by getting rid of the debts hanging over your head, you’ll be in a position to make your credit score even stronger than it was before.
Lewis Adams & Associates has helped countless Utah residents get a fresh financial start. Call our West Jordan office today and schedule a free consultation to see if bankruptcy is the right solution for you.