Have you been struggling to keep up with your debt payments? Are you worried that you may have to file for bankruptcy? If so, you may wonder when is the right time to get a Chapter 7 lawyer.
If you are facing bankruptcy, don’t wait – seek out a qualified Chapter 7 lawyer today.
When Should I File for Bankruptcy?
There is no easy answer to this question, as it depends on each person’s situation. However, it’s always a good idea to seek legal counsel if you are considering filing for bankruptcy. While you may be able to start filing by yourself online, a Chapter 7 lawyer can help assess your financial situation and advise you on the best course of action. They can also represent you in court and ensure that all of the paperwork is filed correctly.
Filing for bankruptcy isn’t a decision to be taken lightly, but it can be very beneficial in the right circumstances. In general, filing for bankruptcy makes sense if your debt has become unmanageable or if an emergency arises that requires large amounts of money.
It’s important to remember that bankruptcy should not be seen as an easy way out; it will have a lasting effect on your credit score and financial profile and can impact your ability to access certain services such as securing a loan or mortgage.
However, in most cases, you may find that the bankruptcy process is much easier than paying the debt and can put you in a position to secure a car loan or mortgage much faster than before.
Should I File Chapter 7 or Chapter 13 Bankruptcy?
Deciding whether you should file for Chapter 7 or Chapter 13 bankruptcy is a question a lot of people face. The main difference between the two bankruptcy chapter options is that Chapter 7 aims to liquidate assets to pay off creditors, while Chapter 13 utilizes a repayment plan, but in many cases, there are ways to pay less in a 13 than in a 7.
When to Choose Chapter 7 Bankruptcy
Generally speaking, you should consider filing for Chapter 7 if you don’t have much income relative to your debt, or don’t have many assets.
Debts Eligible for Discharge in Chapter 7
- Credit Cards
- Loans
- Medical Bills
Some Debts NOT Eligible for Discharge in Chapter 7
- Child Support
- Debt Accrued via Criminal Activity
- Educational Loans (student loans)
- Taxes (some)
When to Choose Chapter 13 Bankruptcy
On the other hand, if you have consistent, reliable income, can commit to paying back at least some of your debts (sometimes an extremely small amount), and want to keep some of your assets, then you may likely do better with filing for Chapter 13 instead.
This decision to file Chapter 7 vs Chapter 13 will ultimately depend on various factors including state law, the type of debt owed, and the amount of money owed. To make the most informed decision possible before filing for either bankruptcy chapter option, it’s best to consult one of Rulon T. Burton’s bankruptcy lawyers who can provide professional advice tailored specifically to your situation.
How Does a Lawyer Help File Bankruptcy?
While it might seem like you just need to fill out paperwork and show the debts you owe, bankruptcy is much more complicated. It not only involves paperwork but court appearances and a series of important decisions to be made.
An experienced Chapter 7 lawyer can provide invaluable advice on the bankruptcy process, helping you navigate the legal requirements, filing deadlines, and other regulations associated with filing for bankruptcy. They assess your assets to determine if Chapter 7 is right for you, determine if your assets may be used to settle debts, and advise you of your rights under the law.
Ultimately, their expertise brings clarity and peace of mind that can make all the difference in a stressful situation.
Am I Eligible for Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is often the most attractive route for those struggling with overwhelming debt, as it wipes away debt in its entirety. However, there are specific criteria that must be met to file.
Requirements for Filing Chapter 7 Bankruptcy in Utah
To be eligible for filing Chapter 7, you must have a limited income, pass a means test, and not have preset debts or filed for bankruptcy within the last six or eight years (the exact period depends on the type of bankruptcy previously filed).
Additionally, you must complete credit counseling with an approved organization before filing. Overall, these requirements exist to ensure that bankruptcy is only utilized by those who need it and that they can properly handle their finances going forward.