Chapter 7 bankruptcy is perhaps the most common form of bankruptcy filed in Utah. Utah bankruptcy attorney will generally prepare a complete bankruptcy petition to have your debts discharged by the bankruptcy court. Under Chapter 7 bankruptcy, debtors are entitled to retain most, if not all, of their property. However, they lose their right to take out loans and credit. This is known as “peacation” or “disability.”
Non-exempt debtors can file a fresh start with the court by selecting chapters 7 and 8. Non-exempt debtors must first apply for a fresh start. With this application, they must provide financial statements that show they can pay back what they owe. They also need to state how much income they have and how much they are likely to earn in the future.
Non-exempt debtors can choose one of two options: voluntary liquidation or bankruptcy. Voluntary liquidation allows debtors to sell all personal property and assets to pay off their debts. This does not, however, remove their debts from the equation. They still must hire an attorney and agree on a repayment plan. Non-exempt debtors who choose bankruptcy must do so with the approval of the court.
Non-exempted debtors may file for chapter 7 bankruptcy, which allows them to declare their inability to repay their debts. Chapter 7 liquidation requires that debtors provide personal information to the court. Debtors must list their regular income as well as assets. They cannot lie on their forms. A good Utah chapter 7 bankruptcy attorney will work with you and help you through the legal proceedings. Your attorney will inform you which type of bankruptcy your Utah chapter 13 bankruptcy will be and what documents you need to start the process.
There are two types of Chapter 7 bankruptcy: debt settlement and discharge. When debtors file chapter seven with the court, it is necessary that they follow the appropriate procedure to settle their unsecured debt. These methods include discharge (paying the entire balance), in order to avoid bankruptcy, and settlement, in order to pay a portion of the balance and get back some of the money to the creditors are owed.
Wage garnishment is another option available when you file for chapter 7 bankruptcy in Utah. Wage garnishment is a means of forcing the debtor to pay off your creditors. The court can issue an order for a specified amount of time to ensure that the creditor receives the wages that they are owed. The wages garnished will be sent directly to the creditor. A wage garnishment is one of the most serious and burdensome aspects of filing for bankruptcy in Utah.
You may also want to work with a Utah bankruptcy lawyer to discuss which methods of debt relief will work best for your situation. Bankruptcy can help you with clearing away the overwhelming amount of debts that are dragging you down. Working with a professional and reputable bankruptcy lawyer will make sure that filing chapter seven means testaments can be issued to the proper authorities and that you are not placed in a situation where you are unable to pay any debts at all. The Utah court system will work in the best interest of the debtor when a chapter seven bankruptcy works out.
Being able to pay off your debts and not having to go to court can be a real comfort for many people in the state of Utah. If you are looking for ways to get out from under the weight of debt and if you are interested in filing a chapter seven bankruptcy in Utah, you should contact an attorney to discuss your options. You can also talk to your lender about your options for debt relief and find out if there is any homestead exemption in your specific state. Getting informed is the first step towards making sure that your financial future is safe and happy.