Friday, August 12, 2011

2 Types of Salt Lake City Bankruptcy

The Utah Foundation performed a comparison to the nation in terms of its consumption expenditures and growth in debt levels. The goal of the analysis was to provide insight into the financial stability of Utah households and how financially prepared they are for the economic recession. Based on the results Utah does not appear to be worse than the rest of the nation in terms of household debt loads; however, Utah did follow the same trend of accumulating significant debts during the recent economic expansion and housing bubble, which creates vulnerability during this economic recession.

Filing for bankruptcy is a daunting process. Obtaining the right advice from an experienced Salt Lake City bankruptcy attorney is important to your financial future. Two types of bankruptcy you can file for are:

  • Chapter 7
  • Chapter 13

Chapter 7 and Chapter 13 both offer benefits to the overburdened consumer; however the proceedings differ in many ways, beginning with eligibility.

Chapter 7 is usually only available to people who have very little or no disposable income, and thus, cannot afford to repay their debts. For people who can afford to pay something to their creditors, as opposed to nothing as in a Chapter 7, Chapter 13 may provide the necessary relief.

Filers under Chapter 13 are entitled to "Individual Debt Adjustment," which is essentially a repayment plan. With the repayment plan, unsecured debt is not discharged as with Chapter 7,
but a Chapter 13 debtor only needs to pay unsecured creditors what he or she can afford to pay.

Always do your research and seek an experienced lawyer if you are thinking about filing for bankruptcy in Salt Lake City

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