Bankruptcy can be very devastating, especially for a family’s sole breadwinner. The financial loss can lead to serious psychological problems which, if not addressed, can be quite debilitating. However, there’s always hope for every bad situation in life, and bankruptcy lawyers in Utah like Lewis Adams & Associates can provide that chance for a recovery.
A lot of people in relatively prosperous countries such as the U.S. enjoy a general feeling of contentment in their standard of living. They own homes, have cars in their garages, and lucrative jobs that enable them to provide for their families and satisfy their needs. But all these can disappear in a flash when one goes bankrupt.
People need to declare bankruptcy for several possible reasons. Some may be the result of bad financial decisions and money management, while others could be due to circumstances beyond one’s control. Spending more than what one earns is another financial pitfall. Losing your job or a health crisis resulting in medical debts can also trigger bankruptcy.
However, like all problems, bankruptcy has its corresponding solutions. A Salt Lake City bankruptcy attorney can assist clients with filing for bankruptcy under the Chapter 7 or Chapter 13 Bankruptcy provisions according to Utah state laws. This can help them secure some financial relief and provide them with the means to restore some normalcy to their lives.
Those who invoke Chapter 7, or straight bankruptcy, are often in such dire financial straits that they can no longer pay any of their existing debt obligations. Chapter 7 thus entails a full liquidation because the debtor’s assets (except personal items like clothing, beddings, household furnishings, etc.) are sold off to pay creditors. In exchange, the debtor is relieved of most of his financial obligations.
Chapter 13 bankruptcy, on the other hand, is essentially a repayment plan that is often used as a preventive measure against foreclosure or repossession. It is also known as a consolidation bankruptcy since it allows the debtor to pay his creditors based on the terms of the payment plan. The payment plan must be drawn in accordance with the debtor’s ability to settle his obligations based on his actual financial capacity.
People who sometimes find themselves in difficult financial predicaments need not despair. There’s always hope for every difficult situation, and life could go on as it should. Reputable Utah bankruptcy attorneys can provide clients with viable solutions to get them back on track.