Considering bankruptcy is a stressful and embarrassing experience for anyone. Often people wait too long to consult with a Bankruptcy Attorney in Salt Lake City and lose their home or car because of the delay. As soon as a person finds that they will not be able to pay their monthly bills on a regular basis they should consider bankruptcy. Their lawyer will instruct them on the best way to proceed.
People who are already in debt might think that it’s too expensive to hire a Bankruptcy Attorney in Salt Lake City. However, the bankruptcy process is set up to get the creditors the maximum amount of money that they are owed and not to protect the debtor. A court-appointed trustee will oversee both a Chapter 7 and Chapter 13 bankruptcy process. They will sell as many of the assets in a Chapter 7 process as they can. It’s the job of the debtor’s lawyer to keep assets protected by law from being sold. This often includes a debtor’s primary residence and car.
A Chapter 7 bankruptcy takes only a few months. Once the assets are sold, the proceeds are distributed to the creditor and the process is complete. The debtor can continue with their life. There are strict legal guidelines that limit who can use Chapter 7. A Bankruptcy Attorney in Salt Lake City can help a debtor determine if they qualify. Only people who make less than the median income in their state are eligible. Those that make more must file for bankruptcy using Chapter 13.
Under this scenario, the bankruptcy trustee puts them on a strict budget to cover minimal living expenses. All other money that they debtor makes is distributed to the creditors each month. The judge determines the length of this repayment process. It usually runs from two to five years.
A Bankruptcy Attorney in Salt Lake City will ensure that the bankruptcy trustee gives the debtor enough money to live. The lawyer will try to keep the length of the plan as short as possible. The debtor has to successfully complete the entire period. If they fail even to make the last month’s payments, the bankruptcy will be voided and they will be responsible for all of the debt. More useful information is available from Lewisadams.com for anyone considering bankruptcy.