Three Important Things Bankruptcy Can Do

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Making the decision to file personal bankruptcy comes with unknowns for most people.  Bankruptcy  can be a good option but it can only do so much. Sometimes people are under the impression that bankruptcy can provide more help than it truly does. Here at the Utah Bankruptcy we came up with our list of three thinks bankruptcy can do for you a couple thinks it cannot do.   

First consider this…

As you start to think about bankruptcy, you should understand there are actually five types. For most people a couple of them will be your best option.  The first one and most common is Chapter 7.  Chapter 7 is sometimes called liquidation bankruptcy.  Sometime in Chapter 7 you are required to give up some or most of your property in exchange for the removal of your debts.  However working with an experienced bankruptcy can help you protect as much of you property as possible.  The second type of bankruptcy to consider is Chapter 13.  Chapter 13 bankruptcy is a great option if you have a lot of assets and believe that you can pay some of your debts back.

Three Important Things Bankruptcy Can Do

Though bankruptcy has limitations it can also be helpful and positive for many people. Here are just a few things that bankruptcy can do for you:

Stop harassment from creditors

Annoying phone calls and texts can be irritating indicators of future trouble.  In bankruptcy they can be dealt with in permanent ways through bankruptcy.  Bankruptcy is a great option if a creditor is on the verge of foreclosing your mortgage or repossessing a necessary item like a car.  Once you file bankruptcy your creditors are no longer allowed to contact you about unpaid debts.

Alleviate credit card debt

Bankruptcy was created with the idea that unsecured debts (like credit cards) could be alleviated through the process. With a few exceptions most credit card debt is unsecured. This means that creditors who hold this kind of debt are unable to get at your property because they have no lien on it.

Stop a wage garnishment

The moment a bankruptcy case is filed your wages should stop being garnished in most cases.  We know it hard to live if 25% of your wages are being garnished with each paycheck.  We work with you and your employer to quickly stop the garnishment and allow you to receive your full wages.

What Bankruptcy Cannot Do

You must understand the bankruptcy has limitations, and it is important to know what they are before you file. If you are in Utah and think that a personal bankruptcy might be for you then contact the Utah Bankruptcy Guy. Here are a couple of things you should know bankruptcy cannot do before you call:

Remove requirements for child support

Child support debts and obligations that cannot be eliminated by bankruptcy. In a Chapter 7 bankruptcy case you still have the full debt to pay. In Chapter 13 bankruptcy your repayment plan must include you making the required payments as well as a plan of repaying what you owe in back child support in full by the end of the plan.

Get your house back once it has been foreclosed upon

.If you hose has already been foreclosed upon there is very little hope of getting the property back under the bankruptcy code.  You may have option under state law but you must file the bankruptcy before a foreclose takes place.

Bankruptcy has many more advantages and limitations so talking to a personal bankruptcy attorney like at the Utah Bankruptcy Guy is the best way to determine if bankruptcy is best for you. Contact us today to schedule an appointment.

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