Believe it or not, when it comes to current primary causes of bankruptcy, the economic impact of Covid-19 is not what leads to most bankruptcy right now. The main reasons to file for bankruptcy in Utah tend to be things such as payday loans, co-signing for other people, trying to aid grown children with too much financial help, medical debt, living outside one’s means, unforeseen circumstances that puts one behind just enough to be unable to provide for themselves.
I get it – bankruptcy can be a terrifying idea to many people. Bankruptcy is a last chance option, and one ought only to consider it in the face of dire financial circumstances. That said, the process will go much smoother with the help of an experienced Utah bankruptcy lawyer. A bankruptcy lawyer can also help you decide when the best time to file for bankruptcy really is.
The following are some of the top reasons to consider filing for bankruptcy:
- Stop collection calls! One reason to file for bankruptcy now is to stop the collection calls. If you, or someone you know, is suffering from the harassment of bill collectors, you might know how frustrating that can be. Bankruptcy has the fortunate effect of stopping that obnoxious behavior.
- Stop foreclosure! Imminent foreclosure on a family home can up end your entire life. Filing for bankruptcy might help stop or slow down the process.
- Stop repossession! This also goes for car payments. If you are behind on your car payments, bankruptcy may stop the efforts of reposess and save your car.
- Save your credit score! Every missed payment to creditors drops your credit score down even further. Thus, it could benefit your score to file for bankruptcy, despite how backwards this sounds that sounds.
- Avoid a civil judgment! A final reason that bankruptcy might pose best option is to avoid judgment liens. If you are currently involved in a lawsuit or are concerned that you will be sued in the near future, bankruptcy can save you from entry of a judgment lien on your property.
What Kind of Bankruptcy Should You File For?
For most people there are two different types of Bankruptcy for which one can file: Chapter 7 and Chapter 13. Generally, Chapter 7 bankruptcy is a fresh start where a debtor can be forgiven of various kinds of debts. This is limited by income and amount of assets at the time the case is filed Chapter 13 Bankruptcy, in contrast, is a more gradual repayment program over seen by a federal judge. When filing Chapter 13 Bankruptcy, a plan is set forth, ranging from three to five years, that outlines payments of the debts to pay off any creditors once approved you make a monthly payment that you can afford to creditors. This process has limited risk and allows most people to keep all of their assets
Get Help Now!
If you or someone you know is considering filing for bankruptcy, the first step is to consult a bankruptcy attorney. Attorney Douglas Barrett and the team at the Utah Bankruptcy Guy has the experience that you need to help you consider your options. Call or text us today and learn more about the reasons to file bankruptcy in Utah.