Should I declare Bankruptcy?
Bankruptcy is one of the scariest words mentioned to many people. While the word may sound ominous, it is important to remember that declaring bankruptcy can be a smart decision. How do you know when it is time for you to declare bankruptcy? Here are some of the questions we like to start with to assess your financial situation:
- Are you missing payments or only making the minimum payment on your credit cards?
- Are you dodging phone calls from collectors?
- When you think about your finances, do you start to feel scared or overwhelmed?
- How often do you rely on credit cards to pay for daily necessities?
- Do you know how much you actually owe?
If the above questions worried you, or you find that you are worse off than you imagined, give us a call. Simply put, bankruptcy is when you owe more than you are capable of paying. At Ogden Bankruptcy Attorney, we will help you take inventory of your liquid assets and monthly expenses to understand your debt to income ratio. If the value of your assets is less than the amount of debt you owe, bankruptcy may be the best way to start over with your finances. It is important to remember that declaring bankruptcy is a very serious thing and you need to carefully consider this decision as it is not a cure-all solution for unmanageable debt.
How do I declare Bankruptcy?
Chapter 7 and Chapter 13 bankruptcy are the most common ways to file bankruptcy. Consult with our Ogden office to determine the best course of action to take when you need to file bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often referred to as a “straight bankruptcy”, meaning you will liquidate your assets to pay off as much of the debt as possible. After approximately four months of liquidating your assets, you will receive a notice of discharge. The record of bankruptcy will remain on your credit record for ten years. However, with correct budgeting and financial control, many people are able to buy a vehicle and a home within a few years. Chapter 7 is the easiest way to obtain a quick, fresh start. The downside to Chapter 7 is the fact that almost all assets will be taken and sold to repay creditors. If you want to keep your home, your company, and other assets, we recommend a different bankruptcy filing.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is the most common for people hoping to keep their property. A Chapter 13 bankruptcy is known as a reorganization bankruptcy. Individuals are able to pay off their debts within three to five years. For you to be eligible for Chapter 13 bankruptcy, you must have consistent, predictable annual income. Chapter 13 bankruptcy includes a grace period in which any debts remaining at the end of this grace period will be discharged.
Declaring Bankruptcy – Your Road to a Brighter Future
It’s never easy to admit you need help, but when it comes to your financial future, don’t wait! Ogden Bankruptcy Attorney is here to help because we understand that you cannot do it alone. Our government has laws in place to protect you from creditors, and to ensure everyone is given a fair deal. If you have an unbearable debt load, it is time to face financial facts. Don’t worry about creditors harassing you for money any more, call Ogden Bankruptcy Attorney today and we will give you the right information and tools you need to get a fresh start. It’s important to understand your legal options, receive a free bankruptcy evaluation by calling our Ogden bankruptcy office today, 801-679-4446!