Personal bankruptcy is a procedure designed to help people and companies cancel out or repay their financial obligations under the jurisdiction of the court. Bankruptcies normally fall under the category of Chapter 7 (asset liquidation) and Chapter 13 (debt reorganization) under the Bankruptcy Code. In both cases, obtaining the help of a bankruptcy lawyer in Salt Lake City will be crucial.
When you file for Chapter 7 bankruptcy, you are requesting the court to eliminate most of what you owe. To make up for this discharge, a bankruptcy trustee will claim any asset you own that's not absolved from collection, resell it, and return the profits to your lenders. Properties excluded from collection include things like home equity, retirement plans, insurance, tools for your occupation, and the like. Talk to a bankruptcy lawyer for a detailed list of these exceptions.
With a Chapter 13 bankruptcy claim, you file a repayment strategy with the bankruptcy court suggesting how you can settle your debt. The money you have to repay will rely on the amount of the debt you owe, your income, and the number of properties you have. Compared to declaring Chapter 7 bankruptcy, you don't need to worry about losing any property with Chapter 13.
Which should you choose?
Each category has a distinct set of prerequisites for qualification. In case you fulfill the requirements for both, you are permitted to decide on the kind of bankruptcy that best applies to your scenario. Most people would prefer chapter 7 given that it doesn't require them to settle any fraction of their debts. Nonetheless, it would be more sensible to speak to a bankruptcy attorney first before you commit to a decision.
One example where Chapter 13 could be the better selection is when you're behind on your mortgage, and you wish to keep your home. Chapter 13 permits you to incorporate your missed payments in your repayment scheme so that you can settle them over time, while Chapter 7 will obligate you to reimburse the entire sum owed immediately. A bankruptcy attorney can further elaborate on situations in which Chapter 13 will be more appropriate.
As you might have gathered, working with a dependable Salt Lake City bankruptcy lawyer during the bankruptcy process can never be stressed enough. Consult a bankruptcy expert about which kind of bankruptcy is best for you. Discover more about the difference between Chapter 7 and Chapter 13 bankruptcies by visiting wiki.answers.com/Q/What_is_the_difference_between_Chapter_13_and_Chapter_7_bankruptcy.
Filing for Bankruptcy? Let Salt Lake City Lawyer Help You