Overwhelmed with debt? Filing bankruptcy is one of the most successful ways to achieve the financial restart you need, but there are many factors to consider before filing. Consult with a seasoned bankruptcy attorney from our firm to guide you every step of the process.

Work with one of our Ogden bankruptcy lawyers to determine the appropriate type of bankruptcy for your unique situation and prepare the necessary documentation needed for filing.

Chapter 7 vs Chapter 13 Bankruptcy

There are many decisions to make when navigating bankruptcy proceedings. One of the most important occurs even before a petition is filed. You must decide what type of bankruptcy makes sense for you and your family, and if you qualify. The two forms of bankruptcy protection most commonly pursued by consumers exist under Chapters 7 and 13 of the U.S. Bankruptcy Code.

Chapter 7 bankruptcy is widely known as liquidation bankruptcy. A trustee appointed by the court will investigate a debtor’s assets to determine whether there are any non-exempt assets that should be turned over to the estate for liquidation and payment to unsecured creditors. The debtor has the option of paying the value of the non-exempt assets to the trustee in a “buyback agreement.”. Chapter 7 bankruptcy is usually completed in about five months.

Chapter 13 bankruptcy is more involved than Chapter 7. It typically takes between three and five-years because the debtor pays past-due mortgage, car, or tax payments during this timeframe. The trustee distributes the funds from those payments to creditors as determined by the bankruptcy plan.

Benefits of a Bankruptcy Filing

No matter what type of bankruptcy you consider, the benefits of a successful discharge can be life-changing. Immediately after filing for bankruptcy, an “automatic stay” is issued, meaning that creditors are informed of your filing and no longer have the right to contact you. The automatic stay also prevents:

  • Personal property repossession
  • Mortgage foreclosure
  • Vehicle repossession
  • Lawsuits
  • Bank levies
  • Wage garnishments

An automatic stay provides immediate and temporary protection for you, but the discharge can have a permanent impact because it cancels your obligation to repay a debt. This is a powerful benefit, but not every debt is dischargeable. Certain obligations including tax debt or child support will survive the bankruptcy case.

Over time, filing bankruptcy generally improves your credit score, even if it leaves a temporary negative mark since the automatic stay prevents additional lawsuits or collection efforts that are damaging to your credit rating. Additionally, the benefits of bankruptcy discharge positions you to meet future financial obligations.

Blue Bee Bankruptcy Law takes a holistic approach to your debt situation. Unlike every other Utah bankruptcy law firm, we enroll our clients in our credit rebuilding program, which usually increases FICO credit scores to a level above 720 within two years of the Chapter 7 bankruptcy discharge and usually before a Chapter 13 discharge.

Discuss Your Bankruptcy Case with an Experienced Ogden Lawyer

Don’t face the uncertainty of the bankruptcy process alone. With the assistance of qualified legal counsel, you can come up with a plan to get yourself out of debt and move on with your life. Let an Ogden bankruptcy lawyer guide you through each step of this complex process and give you valuable peace of mind. Call right away to schedule a confidential consultation.

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