How Can a Bankruptcy Attorney Help You?

                                     

A bankruptcy attorney in Salt Lake City Utah is a legal professional that focuses his or her attention on dealing with the legal aspects of bankruptcy and bankruptcy procedures. A bankruptcy attorney can serve the needs of individuals, companies and even municipalities. The duties of a bankruptcy attorney are many which include filing the original petition, working closely with the client to establish the assets and liabilities and attending court hearings. When a situation gets to the point where bankruptcy seems to be the only option there are usually other problems as well, these problems run the gamut from home foreclosure, property repossessions, garnishment, etc. The bankruptcy attorney may be called upon by the client to deal with these proceedings as well.

In a typical domestic bankruptcy the assets of the bankrupt must be disposed of in an effort to pay down debt. To see that the liquidation happens and goes smoothly the attorney works with a liquidator that has been appointed by the court. In some cases it is not necessary to liquidate assets but the attorney, client and the court work towards establishing a reorganization plan that allows the debt to be paid off over time. There are many people that are facing bankruptcy that have plenty of assets, assets that they do not want to lose. These people are better of declaring an available Chapter that allows for reorganization of debt under very strict guidelines. On the other hand there are many people that have little to lose and they are better off to completely eliminate their debt which gives them the chance to start over.

Chapters 7 and 13 are the common Chapters used for personal bankruptcy. In Chapter 7 assets such as second or third vehicles, boats, vacation homes and even family heirlooms will be liquidated to pay creditors. Once Chapter 7 bankruptcy is completed there are no further repayment demands and no repayment plan. Under Chapter 13 valuable assets that would be otherwise liquidated can be kept but creditors must be paid off in accordance with the plan which is approved by the court.

When a business declares bankruptcy it too can declare Chapter 7 and simply cease to exist, however if the company is viable the bankruptcy lawyer in Salt Lake City may suggest Chapter 11. When the business declares Chapter 11 it can continue to function but it must repay the debts in accordance with a plan for reorganization that was devised by the court and approved by the creditors.

No matter what Chapter is invoked, bankruptcy is a serious issue and must be studied to understand all the long term implications. A bankruptcy attorney can inform you of all the ramifications of declaring bankruptcy. For more information, visist The Utah Bankruptcy Lawyer.

Who can apply for Chapter 13 bankruptcy protection?

There are a number of ways that an individual or business can declare bankruptcy, these methods are commonly called “Chapters.” Filing for Chapter 13 bankruptcy in Utah is a form of debt relief that allows the petitioner to put forward to the court a plan to reorganize his or her debt. It is normal practice for the petitioner to engage the services of a competent bankruptcy attorney whose task is to demonstrate that the petitioner is capable of repaying most of the accumulated debt and that this is the preferred option for all involved.

Chapter13 bankruptcy is for people who have significant assets that theywish to keep; assets such as their home, other property, art, vehicles, collectables, etc. Filing for Chapter 13 bankruptcy will allow them to keep their assets intact; they will not be seized and disposed of at auction. For those who have very few assets the preferred choice is Chapter 7, they have really nothing to lose so having the debt discharged quickly is the favored option.

Under the rules that apply to Chapter 13, the petitioner is obliged to visit the court before actually filing. This visit will give the petitioner and his or her attorney an opportunity to disclose any and all information as it pertains to debt and assets. The court will expect the petitioner to provide a detailed list of monthly expenditures including repayment of secured debt such as a vehicle or property. Anyone that files for Chapter 13 bankruptcy in Utah must prove that they have a steady income which exceeds the total amount of secured debt and living expenses, the balance in the eyes of the court is available to pay the unsecured debt, some of which is priority, other is not. Priority debt for example is past due child support, back taxes and any debt that is payable to their current employees where they have a personal liability. Unsecured debt that is not considered to be a priority are credit card bills and medical bills; if the reorganization plan is accepted by the court administrator some unsecured debt may be forgiven.

Once the petition for Chapter 13 has been presented to the court and accepted these actions in themselves are enough to end all creditor actions that are designed to collect the outstanding debt. Upon filing Chapter 13 all creditors must cease any form of harassment and they are not allowed to sue you.

When everything has been settled, the reorganization plan is complete and the repayment schedule agreed upon all payments to creditors are taken out of your hands, you pay the agreed upon amount to the court appointed administrator who in turn makes the payments to the creditors on your behalf. Making your payment to the administrator in accordance with the plan is imperative otherwise you may lose certain privileges such as the discharge of certain debts once the plan is completed.