Bankruptcy is one of the most difficult and life-changing scenarios you’ll ever face. Not only because it drains you physically and emotionally, especially financially, but also because it deals with different aspects of the law.
You don’t have to burden yourself, though, especially when you are backed by the most competent Chapter 7 bankruptcy lawyers in Salt Lake City. Get to know the benefits and other essential things you need to understand when you file for Chapter 7 bankruptcy:
A Fresh New Start
Chapter 7 bankruptcy was designed to give a debtor a fresh new start after a disastrous financial meltdown. Once you have filed for it and got approval, it frees you from certain debts and liabilities. Yes, there certain types of debts that are not covered by Chapter 7 bankruptcy.
These debts include child support and alimony, certain state and local taxes, and debts gained due to fraud. There are some instances when student loans can also be erased should you get a favorable decision. But overall, Chapter 7 bankruptcy still offers the best way to give you a fresh new start.
No Repayment Plan Needed
There are certain requirements and rules when you file for bankruptcy. For instance, when you file for a Chapter 13 bankruptcy, you’re still required to repay your creditors with a strategic repayment plan. In addition, repaying debts comes as a priority, not as an optional thing.
With Chapter 13 bankruptcy, you no longer need to worry about repaying all your debts when your Chapter 7 bankruptcy application is approved. It automatically frees you from any responsibility of repaying your debts. However, there are some rules you should comply with, so make sure to follow your lawyer’s instructions.
Amount of Debt
In addition to having no repayment plan, another good thing about Chapter 7 bankruptcy is that it doesn’t have any limit on the amount of debt. Unlike with Chapter 13 where debtors must meet a certain requirement to become eligible, there is no rule which could disqualify you from filing for bankruptcy.
Reverse Your Fortune Soon
Bankruptcy may be life-changing, but it shouldn’t sound like a lifetime consequence. During the early stages, you may find yourself miserable and helpless. But it isn’t the end of the road. You may have to live a different lifestyle from what you’re used to, but what’s important is to earn a decent income without any consequences. Find out more about it when you talk with an experienced bankruptcy law practitioner.
Under the Bankruptcy Code, there are several alternatives you can choose to ease your burden. Depending on the composition of your business, there is Chapter 11 and 13 which will give you some relief by adjusting the terms of your debts, perhaps an even more comprehensive reorganization so you can get additional extensions for repayment.
Some debtors who have financially capable friends may also come into out-of-court agreements with creditors, which is a better alternative to filing for bankruptcy. Whatever the decision may be, you should seek the legal assistance of a professional bankruptcy law practitioner in resolving such a case.