Helping People in Utah Find Relief Through the Chapter 13 Bankruptcy Process
If you have debts that you cannot pay either as an individual or as a married couple, you may be considering bankruptcy as an option for relief. It is important to realize that there are different types of bankruptcy cases and while the majority of people file for Chapter 7 bankruptcy, hundreds of thousands of petitions are filed each year under Chapter 13.
The process of Chapter 13 bankruptcy is significantly different than Chapter 7 and has its own potential benefits and drawbacks. In order to ensure that you choose the best type of bankruptcy for your situation, you should always have an experienced Chapter 13 bankruptcy lawyer evaluate your case.
The legal team of JLT Law has represented many clients throughout the Chapter 13 bankruptcy process and will always strive for the best possible result in your case.
The Benefits of Chapter 13 Bankruptcy
Chapter 13 bankruptcy does not provide you with a relatively quick discharge of your debts like Chapter 7 does. However, this does not mean that Chapter 13 is not beneficial for many individuals and couples. Some benefits of this process can include the following and more:
- There is no seizure or liquidation of your property or assets, so if you have a higher net worth, you can protect your property.
- You do not have to pass the means test, so you can qualify for Chapter 13 even with higher income.
- Chapter 13 can help you pay arrears on debts that are not addressed in Chapter 7 bankruptcy, including your mortgage, auto loan, or student loans.
- You still receive a discharge of remaining qualified debts at the end of the Chapter 13 process.
While Chapter 13 is not right for everyone, it can certainly be successful in providing financial relief for many people throughout Utah.
The Chapter 13 Bankruptcy Process
Instead of taking mere months, the Chapter 13 bankruptcy process generally takes years. Before you can have your debts discharged, the bankruptcy court will reorganize your debts and require one monthly payment for three to five years, which the court will then distribute to your creditors per its discretion. This payment is based on your income and expenses and it is critical to have an experienced attorney who can work to negotiate a reasonable payment to ensure success in your payment plan.
During your payment plan, creditors are generally prohibited from attempting to collect debts through calls, letters, wage garnishments, lawsuits, or any other means. Because your payment plan can also include mortgage or auto loan arrears, this type of bankruptcy can help you avoid foreclosure of your home or repossession of your vehicle.
Upon the successful completion of your payment plan, the court can discharge remaining debts and you will have no further obligation to pay those debts or the court.
Find Out How a Salt Lake City Chapter 13 Bankruptcy Lawyer can Help You
The Chapter 13 process can be complex and confusing. Your success is dependent on providing the court with complete and accurate information and negotiating a fair and reasonable payment plan. At JLT Law, our Chapter 13 bankruptcy attorney regularly helps clients in and around the Salt Lake area succeed in Chapter 13 cases.
If you want to learn more about your bankruptcy options, please call JLT Law at 801-596-9400 for free today.