People go through a lot of challenges in life, but few are as distressing as undergoing a financial crisis. Unmanageable debt resulting from credit card overextensions, medical bills, and unsecured loans can undermine any household budget. The burden can sometimes be severe, as when we’re faced with creditor harassment and the threat of foreclosure.
Thankfully, financial problems can be resolved. Debtors can seek legal assistance from an experienced bankruptcy attorney in Utah, such as Lewis P Adams of Lewis Adams & Associates, to determine the most feasible solutions to their problems. Some law firms in Utah focus on consumer Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Chapter 7 is concerned with liquidation, as the debtor’s nonexempt property will be sold to pay off creditors. Chapter 13, on the other hand, is a repayment scheme which enables a debtor to reorganize all debt into single monthly payments, with payment periods usually lasting from 3 to 5 years.
However, filing for bankruptcy does not eliminate debt, and neither does it absolve the debtor of all responsibilities. Filing for bankruptcy is more concerned with restructuring existing debts to make future payments more manageable. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, most debtors, with limited exceptions, must seek credit counseling from a government-approved organization at least six months before filing for bankruptcy. Moreover, they must attend a recognized debtor education course before any debts are discharged.
While filing for bankruptcy can be a traumatic experience, it is nothing to be ashamed of, as many people have been through the same predicament. It is important to face the situation down and seek professional assistance from a trustworthy bankruptcy attorney in Utah. In addition to dispensing legal advice, such professionals can objectively determine if filing for bankruptcy is the best course of action for you.
Once debtors have legally obtained their discharge, there will still be challenges to face. As bankruptcies will remain on credit reports for up to 10 years, former debtors will have to work hard to re-establish their credit.
A bankruptcy attorney can help troubled households find a fresh start in life. With the proper legal assistance and financial discipline, you can build a brighter future for you and your household.