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The vast majority of consumers have some debt in one form or the other. The most common types of debt are credit card debts and student loans. Others are mortgages, car loans and personal loans among others. Life can be challenging if you cannot access any type of debt. However, things can be much worse if you have accumulated a lot of debt that you are not able to service. In such a case, you may have to file a chapter 13 bankruptcy Utah.
Bankruptcy is a legal provision that makes it possible for debtors with unmanageable levels of debt to get rid of their debts. It can be voluntary or involuntary. In case of the former, the debtor files a petition in court to get legal protection. In case of the latter, creditors rush to court to seek the intervention of the court in their debt problem.
Businesses and organizations that have unmanageable levels of debt can only use chapters 11 and 7 to get rid of their debt. Chapters 13 and 7, on the other hand, are perfectly suited for individual debtors. Since these two options have pros and cons that you may want to know of, it is important you do your research before making a decision.
It is important for you to consult a lawyer when considering this legal option. A competent lawyer can advise you accordingly and help you with the paperwork. They can even represent you in court as well as give you tips on how to get the kind of outcome you want. Ideally, you should search for the most experienced lawyer in town.
Chapter 13 basically provides for debt restructuring. It entails aspects of both debt consolidation and debt forgiveness. Instead of making several monthly payments to several creditors, you will only be required to make a single payment every month to the trustee. The installment will also be an affordable one, and it depends on how much money you can spare based on your income and living expenses. After the specified period, all unpaid debts are written off.
While this may be one of the best types of bankruptcies, debtors need to be careful. This is because any default on the monthly payments to the trustee will lead to liquidation under chapter 7. Therefore, adherence to the repayment plan is recommended. Ideally, the bankrupt consumer should arrange their finances to ensure they can service their payments comfortably.
When you become bankrupt, there are some things that you will not be able to do. For instance, you will not be able to access cheap credit facilities. You will also have a hard time renting a car or house. In fact, you may not be able to get a better job as most people do not want to associate with bankrupt individuals.
If you are not able to service your student loans or make the monthly child support payments. You can be sued and jailed. Even if you become bankrupt, you will still be expected to make these payments. When filing for bankruptcy, therefore, you should know that not all your debts will be resolved. You will still have to pay child support, student loans and some other debts.
Bankruptcy is a legal provision that makes it possible for debtors with unmanageable levels of debt to get rid of their debts. It can be voluntary or involuntary. In case of the former, the debtor files a petition in court to get legal protection. In case of the latter, creditors rush to court to seek the intervention of the court in their debt problem.
Businesses and organizations that have unmanageable levels of debt can only use chapters 11 and 7 to get rid of their debt. Chapters 13 and 7, on the other hand, are perfectly suited for individual debtors. Since these two options have pros and cons that you may want to know of, it is important you do your research before making a decision.
It is important for you to consult a lawyer when considering this legal option. A competent lawyer can advise you accordingly and help you with the paperwork. They can even represent you in court as well as give you tips on how to get the kind of outcome you want. Ideally, you should search for the most experienced lawyer in town.
Chapter 13 basically provides for debt restructuring. It entails aspects of both debt consolidation and debt forgiveness. Instead of making several monthly payments to several creditors, you will only be required to make a single payment every month to the trustee. The installment will also be an affordable one, and it depends on how much money you can spare based on your income and living expenses. After the specified period, all unpaid debts are written off.
While this may be one of the best types of bankruptcies, debtors need to be careful. This is because any default on the monthly payments to the trustee will lead to liquidation under chapter 7. Therefore, adherence to the repayment plan is recommended. Ideally, the bankrupt consumer should arrange their finances to ensure they can service their payments comfortably.
When you become bankrupt, there are some things that you will not be able to do. For instance, you will not be able to access cheap credit facilities. You will also have a hard time renting a car or house. In fact, you may not be able to get a better job as most people do not want to associate with bankrupt individuals.
If you are not able to service your student loans or make the monthly child support payments. You can be sued and jailed. Even if you become bankrupt, you will still be expected to make these payments. When filing for bankruptcy, therefore, you should know that not all your debts will be resolved. You will still have to pay child support, student loans and some other debts.
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You can find a summary of the benefits you get when you consult a Chapter 13 bankruptcy Utah attorney at http://www.bankruptcyutah.com/about right now.
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