If you have reached the point when you can no longer pay your debts and your experiencing harassing phone calls, letters and threats of legal action, it may be time to consider declaring bankruptcy. Depending on the complexity of your situation, you will likely need to hire a bankruptcy attorney. Recent changes to the bankruptcy laws have made the system even more complicated than before.

There are several types of bankruptcy but the most common is Chapter 7 and Chapter 13. Chapter 7 is known as liquidating bankruptcy meaning you are compelled to liquidate assets that are not exempt under law. Under Chapter 7 you can discharge medical debt, credit cards while keeping a vehicle and other exempted property. Your case will be assigned to a trustee who is responsible for liquidating assets and distributing funds to creditors. The Utah District Bankruptcy Court will decide if your financial situation allows you to repay debt at a certain level. If they find that you are able to pay your creditors a percentage of the debt over five years you may be forced to file Chapter 13. Chapter 13 is known as the wage earner plan. This forces the debtor to formulate a pay back plan over a 3-5 year period. Under this type of bankruptcy you can stop a foreclosure and retain your home if you can make the payments plus a bit more to catch up. The court will administer a “means test” to decide if the debtor has the ability according to their income and expenses to file Chapter 7 and if not you will be left with any other choice than to file Chapter 13. There are also Chapters 11 and 12 for family farms and business reorganization or for debtors with an extreme amount of debt. Finding an experienced bankruptcy lawyer is a fairly simple process. You should shop around for the best rates and research any attorney you may want to hire. You will want to make sure they are members of the Utah Bar Association and the American Bar Association. Once you have found an attorney and reviewed your financial situation you will have a better idea of your best option. It is important that you follow the instructions given to you. You must attend a credit counseling course before you file and attend a financial skill’s class before your bankruptcy can be discharged. Don’t wait a minute longer, find an attorney today and start getting back to a normal life and a promising future.

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