lundi 6 novembre 2017

All About Filing A Chapter 13 Salt Lake City Utah

By Carolyn Cox


Most people have a lot of debt in their life, but they have found a way to make regular payments to ensure they do not default. Unfortunately, there are many people who have been irresponsible and failed to service their debts in a timely manner. There are also those who have lost their jobs, which made them default on all their loan obligations. Whatever the case, it is possible to seek legal protections and debt forgiveness through chapter 13 Salt Lake City Utah.

When you have a bad debt, you will never be able to pay it off unless you sell something to pay your debts, or you win the lottery or something. This is because your debt will be growing due to interest rate and penalties among other charges. Through bankruptcy, you can have a large portion of you debt forgiven.

Bankruptcy can be looked at as a way for the government to help distressed debtors to pay off their bad debts. Both state and federal law have bankruptcy provisions to protect debtors. Please note that there are usually strict requirements that debts are required to satisfy before they can be declared bankrupt.

Once you apply for bankruptcy and your application is accepted, all the debts that are subject to bankruptcy proceedings are frozen. This means that no interest will accrue. Neither will the creditor impose penalties. Furthermore, creditors will be barred from pursuing you any further. Everything will have to go through the court.

In a chapter 7, debts are normally forgiven as soon as assets are liquidated. With a chapter 13, however, debts are only forgiven after the debtor has honored their end of the deal. They have to make regular payments to the trustee for several years to have their debts forgiven.

The biggest upside with this bankruptcy option is the low monthly payments, which are convenient. For instance, if you can only afford to spare $450 monthly towards paying off your debts, this is the amount the court will accept regardless of the magnitude of the outstanding balance. Furthermore, you get to retain all your assets as they will not be auctioned off to pay debts.

There is no doubt that this is the most convenient debt resolution option for consumers. However, you should know that like any other type of bankruptcy, there are some downsides you are likely to face with this option. For instance, you will be listed as a defaulter, which will prevent you from getting an affordable loan. Renting a house or car will also be difficult since most firms nowadays run credit checks.

In Salt Lake City, Utah, there are many types of lawyers you can hire whenever you are faced with a legal problem. For instance, if you want to file for bankruptcy, you can easily find a bankruptcy lawyer to guide and represent you throughout the process. It is always a good idea to get competent legal counsel when seeking legal solutions for your problems. In that regard, be sure to hire the most experienced chapter 13 lawyer in the city.




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