Filing bankruptcy is a serious decision and you should weigh your options carefully before you file. However, it is usually the best way to get out from underneath crushing debt. If you have questions about the advantages of filing Chapter 7 bankruptcy in Salt Lake City, reach out to a dedicated attorney today.
Chapter 7 bankruptcy provides instant relief from creditors’ efforts to collect. This relief comes from an “automatic stay.” When you file a petition, your creditors are immediately notified of your bankruptcy filing and prevented from collecting on their claims. The court will notify creditors automatically, but if you are contacted by a creditor, you need only provide them your bankruptcy case number, filing date and your attorney’s phone number. If they continue to contact you, your lawyer will ask the judge to hold the creditor in contempt.
An automatic stay provides temporary relief from overwhelming debt, but permanent relief is granted through a bankruptcy discharge. At the conclusion of a Chapter 7 bankruptcy case, the courts will order that your debt be discharged, with a few exceptions like unpaid income taxes less than three years old, child support, alimony, and student loans.
Once a debt is discharged, the creditor who holds it can no longer attempt to collect on it. This is true even in cases where the creditor has obtained a judgment in court. However, it is important to note that judgment creditors who previously record a copy of the judgment in the Utah county in which you own property may still have a judicial lien which may need to be paid when you sell the property. A qualified bankruptcy lawyer can often remove judicial liens if they interfere with your homestead exemption.
There are two different forms of bankruptcy filings: Chapter 7 and Chapter 13.
One of the primary benefits of filing under Chapter 7 is the time it takes to obtain a discharge. When undergoing a Chapter 7 bankruptcy, expect a discharge within six months. Chapter 13 is a lengthy process that can take up to five years to obtain a discharge.
Unlike every other Utah bankruptcy law firm, Blue Bee Bankruptcy Law helps debtors rebuild their credit after bankruptcy through their credit rebuilding program. While many believe that bankruptcy negatively impacts their credit score, the reality is that most people will improve their credit much faster after bankruptcy than if they negotiate settlements with creditors or wait for the negative trade lines to roll off their credit report.
Better credit can have an enormous impact, including lower interest rates on loans, lower security deposits on rental property, and even a better job.
There are many benefits to filing for protection under Chapter 7 of the bankruptcy code, and it is important to familiarize yourself with these advantages before filing. An experienced Salt Lake City attorney is the best way to examine your options and ensure that you make an informed and practical decision. Call right away to schedule a confidential consultation and learn more.