Imagine that after a few years of success, your event planning business faced an economic downturn. Now, as its sole income earner, you’re struggling to meet your family’s needs, and have already accumulated more debts than you can handle. Such a situation would be a good time to consider filing for bankruptcy. Here are some things to remember:
What Is Bankruptcy?
A person who has more debts than he can pay off can seek relief from said debts by filing for bankruptcy with the help and guidance of a Utah bankruptcy attorney. Everyone enjoys the right to file bankruptcy, enabling him to manage his debt problems, and get a fresh financial start. The requirements in filing for bankruptcy vary from state to state.
Chapter 7 vs. Chapter 13
For private individuals, bankruptcy is categorized either as Chapter 7 bankruptcy or Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, the debtor’s assets will be sold, the proceeds of which will be used to pay off debts. In a Chapter 13 bankruptcy, an installment payment plan will be administered by the trustee which the debtor must pay off.
Before a debtor files for bankruptcy in Utah, he’s required by law to attend credit counseling from a government-approved agency. Afterwards, he needs to complete the bankruptcy petition and other necessary forms, and file these at the Utah bankruptcy court. The debtor must then attend a debtor education course to learn about personal financial management.
Hiring a Lawyer
While it’s possible to file for bankruptcy on your own, it’s best to have help from a law firm like Lewis Adams & Associates which have attorneys who are experienced in handling similar cases. Filing for bankruptcy entails a lot of paper work, which can be even harder to deal with when you already have your debts to worry about. With a lawyer, you can also gain access to debt repayment programs.
Length of Process
The court will set a date on which the debtor is to appear with his Utah bankruptcy attorney; usually a month or two after the bankruptcy is filed. The debtor can then be declared legally bankrupt, thereby allowing the process of debt payments to begin. If it has been established that the debtor has no assets to sell, creditors are restrained from harassing him.