How to File for Bankruptcy
The first step for how to file for bankruptcy is to find a good bankruptcy attorney. The main reasons that compel people to file for bankruptcy revolve around unemployment, bad credit, accumulated medical bills and marital separations. Going through bankruptcy seems really scary. The demonization and beating that bankruptcy have received from the media has not helped matters any, and today, the mere mention of that word is indeed scary.
You can accommodate some level of being indebted, especially through credit cards. However, there are times when the situation moves from bad to worse and the best solution is to give in and consider how to file for bankruptcy.
Evaluate your financial position
Just how can I file for bankruptcy? Before carrying out any major step you should be in a position to know if bankruptcy is what’s best for your situation. Start by asking yourself some of these questions like:
- Are you receiving frequent calls from your creditors?
- Are you buying basic essentials with your credit card?
- Are you unable to quantify the figure you owe?
If your answer to all of the above questions is yes, then you are at crossroads. Being bankrupt means that in your current financial standing; you cannot be able to handle the amount of the debt that you have accumulated.
How to file for bankruptcy
Its either you take a bold step and file for bankruptcy or your creditors will go to court and compel you to declare for bankruptcy. The method that you choose comes with its own advantages and disadvantages. The good thing is that you can come to us and we will guide you on the most appropriate way to file for bankruptcy if you reside in Utah.
Filing for bankruptcy under Chapter 7
Filing for bankruptcy under Chapter 7 is the most common option for many people. In this approach, all your assets and properties are liquidated so as to offset as much of your debt as it possibly can. This cash then gets distributed to your creditors who may be credit card companies or banks. After four months, a discharge notice is sent to you. This bankruptcy record will then remain on your credit report for a decade.
Your situation might seem hopeless from here, but this is not the case. Many who have filed for bankruptcy before have still been able to purchase properties. Actually, from a different perspective, Chapter 7 liquidation offers you a quick, new start. This chapter may not be the best option for those who own assets that they intend to keep.
According to chapter 13
Chapter 13 bankruptcy is also called debt reorganization. People who intend to keep some of their properties should file for bankruptcy under chapter 13. Here you are supposed to pay off your debts within a period of not more than five years. You are supposed to submit all the monies to a trustee who is appointed by the court. The trustee will then distribute the monies accordingly to all of your creditors.
As you consider how to file for bankruptcy, I am sure you have seen the need for a bankruptcy lawyer so that he/she can help you determine which between Chapter 7 and Chapter 13 bankruptcy is most appropriate for you. Here, we will consult with you and guide you appropriately. Bankruptcy means that the creditors will ease off your back and that you can rebuild your financial life again.
My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.
To schedule an appointment, call (435) 901-3449
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