Utah Bankruptcy Frequently Asked Questions: What Is Bankruptcy?
Bankruptcy is a Federal Law (11 USC) created for the sole purpose of giving debt relief to individuals and businesses. Congress recognized that many people many people will run into financial difficulty throughout their life time so they created bankruptcy laws to protect them from their creditors. Congress understood that there will be many people who want to repay their creditors, but due to unforeseen hardships (i.e., divorce, high medical bills, loss of a job, etc) they simply cannot repay their creditors.
Who Can File for Bankruptcy in Utah?
The qualifications for bankruptcy Utah are such that nearly everyone qualifies for some form of bankruptcy (Chapter 7, Chapter 13, etc.). But not everyone needs to file bankruptcy. We frequently do not recommend bankruptcy to a portion of the people with whom we meet. The “New” bankruptcy law that was passed in October of 2005 was intended by Congress to make it more difficult for individuals to file bankruptcy. However, in our experience, about 95% of people who qualified for chapter 7 bankruptcy before the new law was passed, still qualify for chapter 7 bankruptcy. Those that no longer qualify, still qualify for chapter 13 bankruptcy. The question of which bankruptcy chapter is right for you, of course, depends on many factors specific to your case and can only be answered after a full, free consultation with one of our experienced attorneys.
What advice can a bankruptcy attorney give me?
- Whether or not you should file bankruptcy. Unlike some attorneys, we will actually advise you NOT to file bankruptcy if we do not believe it would be in your best interest;
- How to plan, if necessary, for the bankruptcy filing;
- The cost to file bankruptcy;
- The pros and cons of filing bankruptcy;
- Outline the bankruptcy process;
- What can be done to rebuild your credit after bankruptcy.
When to Declare Bankruptcy Utah?
Bankruptcy is not right for everyone. Bankruptcy should be used only as a last resort. However, the question then becomes, “When is it a last resort?” We can help you answer this question. Our basic rule of thumb is if you repay your debts within a reasonable period of time AND still live a comfortable, stress free life then you should not file Bankruptcy. If you cannot, then bankruptcy should be a strong consideration.
Does Weekes Law offer a free initial consultation?
YES. You will meet with a highly experienced Utah bankruptcy lawyer during your first consultation. The first consultation is FREE and there is no obligation to file bankruptcy and no obligation to even hire our firm.
How should I choose a bankruptcy attorney?
First, you must feel comfortable with the attorney you hire. The following are some additional items to look for:
- Make sure the attorney offers a free consultation;
- Make sure the attorney gives you candid advice as to whether or not you should file bankruptcy;
- Make sure the attorney spends as much time with you as necessary to fully answer all of your questions;
- Make sure the attorney has a thorough and convenient process to ensure that you are fully prepared for your meeting of creditors;
- Make sure the attorney gives you candid advice about which chapter of bankruptcy you should file. The attorney fees for a chapter 13 are typically much higher than those in a chapter 7.
What are the Consequences of Bankruptcy Utah
Individuals and families that are considering bankruptcy are frequently concerned about the consequences bankruptcy Utah may have on them. The first consequence is that your creditors will no longer be able to collect the debts due to an automatic stay. If you file a chapter 7 bankruptcy, you will not be able to file chapter 7 again for 8 years. While a bankruptcy will remain on your credit report for up to 10 years, that does not mean that you will not be able to obtain a loan during that period. Most debtors are able to begin rebuilding their credit within a few months after filing and your credit will continue to improve over time. Perhaps the most important bankruptcy consequence is that you get a fresh financial start. To begin a financial fresh start, contact us today.