Filing for bankruptcy in the state of Utah is one of the most difficult decisions anyone can ever make. Financial distress can stem from many sources, such as credit card debt, medical bills, or unforeseen disasters. If you or your family face the threat of property foreclosure or suffer continuous harassment from debt collectors, you can hire a trustworthy bankruptcy attorney in Utah to help you out of your predicament.
Bankruptcy attorneys specialize in guiding people through the bankruptcy process. They handle things like filing petitions in court, communicating with the assigned trustee, and providing legal representation whenever called for. It would be advisable to get help from leading bankruptcy lawyers, like Atty. Lewis P Adams of Lewis Adams & Associates, as the process involves intricate legalities and copious paperwork.
Some legal firms concentrate on the two most common chapters of the Bankruptcy Code: reorganization (Chapter 13) and liquidation (Chapter 7). Reorganization involves a court-approved settlement plan to assist individuals who have been overwhelmed by severe financial problems or catastrophic events. Individuals who have a regular income and can settle monthly payments are eligible for this program. Payment plans will be adjusted to suit the debtor’s financial capabilities.
Liquidation, on the other hand, involves the selling of assets, with the profit being used to pay off unsecured debts. However, certain assets are exempt from liquidation, and these are assets that are essential to maintaining a household. In the state of Utah, homeowners can generally exempt about $20,000 worth of equity in their homes, with the maximum being set at $ 40,000. Furthermore, the court will assign a trustee to handle all the debtor’s non-exempt assets, ensuring that these will be used to settle remaining debts.
Attorneys who specialize in bankruptcy in Utah can help you determine the right course of action. They can also offer invaluable insights that will help you manage your finances more efficiently. This way, you’ll have little chance of getting stuck in the same financial predicament in the future.
Bankruptcy is a serious matter. Even though it can be used to discharge unsecured debts, it can leave a mark in your credit score for up to 10 full years, as stated in the Fair Credit Reporting Act. Those who are considering filing for bankruptcy are advised to evaluate their true financial status and creditworthiness to avoid putting their reputation in a bad light.