Bankruptcy helps people who can no longer pay their debts on their own get a fresh start by liquidating their assets to be able to pay their debts or by creating a repayment plan. These are called Chapter 7 bankruptcy and Chapter 13 bankruptcy respectively. Filing for bankruptcy will in most cases prevent your creditors from collecting from you. Federal bankruptcy laws were enacted to provide good, honest and hard working people with a way to be freed of their debts.
There are several reasons to consider bankruptcy and how to know if it’s your best option. If you are more than one month behind on your mortgage or behind on vehicle payments, you can’t meet your weekly or monthly expenses, tax debt that you can’t afford to pay off within a year, if you’ve received notices of a home foreclosure or a car repossession, etc. then bankruptcy may be your best option. Bankruptcy is the best option when you can no longer keep up with your debts and are in need of legal help to free you from them. If most of your debts are unsecured then these debts can be wiped out with bankruptcy, unsecured debts are different and only under certain exceptions are wiped out. When you understand the downsides of filing for a bankruptcy and still know that it’s in your best interest and will benefit you in the long run bankruptcy will probably be your best choice. If you have explored all your other options and there are no other good options available to you might also be a good sign. If you know you will be in a better place by filing for bankruptcy then that’s also a good indication that it’s your best option.
In Utah at the Law Office of Douglas Barrett we will be able to assure you if bankruptcy will be your best option or not based on your financial situation. Give us a call at (801)-221-9911 for a free bankruptcy consultation. Outside of Utah try NACBA for help in your area