While Chapter 7 bankruptcy1 helps hundreds of thousands of people eliminate debt and obtain financial freedom each year, many people still have significant misconceptions about bankruptcy and what it can and cannot do. Here are some answers to some of the most frequently asked questions regarding Chapter 7 bankruptcy in Utah.
What are the Basics of Chapter 7 Bankruptcy?
Chapter 7 is the most commonly filed type of consumer bankruptcy and involves the liquidation of a debtor’s non-exempt assets. The proceeds of the liquidation are used to pay off creditors. At the conclusion of the bankruptcy, a debtor’s remaining debts are discharged, provided that they are not certain types of debt that are usually nondischargeable, such as student loans or past-due child support payments.
What Kinds of Debts are Normally Eliminated through Chapter 7 Bankruptcy?
While every bankruptcy is different, there are certain categories of debts that are often eliminated in Chapter 7 cases. These include the following:
- Credit card debts
- Medical bills
- Personal loans
- Business loans
- Civil judgments
- Collection accounts
- Past-due utility bills
Do I Need an Attorney to File for Chapter 7 Bankruptcy?
Many people ask whether they need to hire an attorney to file for Chapter 7. While there is no legal requirement that people who file for Chapter 7 do so with the assistance of a lawyer, seeking the advice of a qualified lawyer is strongly recommended by the U.S. Courts.2 Some of the ways in which a lawyer can help include the following;
- Determine whether you qualify for Chapter 7
- Provide assistance in completing and filing forms
- Let you know how filing will affect your tax liability
- Ensure that you are making full use of the exemptions available to you
- Let you know whether you will be able to keep your property after you file
Contact JLT Law Today to Speak with a Salt Lake City Bankruptcy Attorney Today
Chapter 7 bankruptcy may be able to help you get out of debt and start you on your path to a brighter financial future. To discuss your financial situation with one of our lawyers, call JLT Law today at 801-797-2098 or send us an email through our online contact form.