Bankruptcy is a way for individuals and businesses to get a whole new start financially. When times are tough, or mistakes are made, bankruptcy may be the only way out of financial trouble. Depending on your circumstances and whether you are an individual or business owner, the chapter of the bankruptcy will differ. An attorney can help you figure out which one is best suited to your needs.
One form of bankruptcy commonly used for people who are wage earners, but due to financial setbacks or the economy, are having problems keeping up with their payments is a Chapter 13 in Salt Lake City. What is a Chapter 13 and how does it help? The following will cover the basics of this type of bankruptcy.
Consolidating Debt
Unlike a Chapter 7 that discharges your debt completely, a Chapter 13 in Salt Lake City offers a repayment plan that is more affordable and/or that helps you get out of debt in a much shorter time. You can arrange to pay off your debt within three to five years with Chapter 13.
Your attorney helps negotiate lower payments, no interest, and works to help get rid of any late payment charges on your debts. You get a fresh start, stop collection calls, and make one payment you give to your lawyer or a trustee and he or she sends in the payments to each of your creditors.
Avoid Foreclosure or Repossession
Chapter 13 in Salt Lake City is also a good way to stop home foreclosure or property repossession. This is a good solution if you are in danger of repossession or foreclosure. This can happen for a variety of reasons that may or may not be your fault.
Some people who have filed for Chapter 13 bankruptcies filed because they went from a two-income to a one-income family and they needed help with preventing a home foreclosure or vehicle repossession.
People who are good candidates for Chapter 13 in Salt Lake City will still be income earners able to make payments to creditors. Your attorney will go over the details of the requirements for Chapter 13 so you know if you can use this to protect yourself. Find out more about this bankruptcy and how to contact a lawyer that can help you.
