When Should You File for Chapter 7 Bankruptcy?

Managing personal finances has continued to be more challenging in recent years. This is due to slow growth in wages compared to rapidly rising costs of education, housing, healthcare, and other living expenses. For those that are in debt and need to find a way out, filing for bankruptcy is a good option. One option to consider is Chapter 7 bankruptcy.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a form of bankruptcy that will result in the discharge of many of your debts. Some forms of debt that are commonly discharged in a Chapter 7 filing are credit cards, personal loans, and medical bills. Along with this, you will need to liquidate some assets including your personal savings accounts, but you can typically continue to hold retirement funds, home equity, and personal assets.

Should You File for Chapter 7?

Choosing to file for bankruptcy is a big decision. If you are stuck in personal debt and falling behind on payments, it could be a good idea. It is important to consider your personal situation to determine it is worthwhile. A Chapter 7 bankruptcy will remain on your credit report for up to 10 years, but it will provide you time to rebuild your personal finances and restore your credit.

Reasons to Hire an Attorney

If you are going to file Chapter 7 bankruptcy, it would always be a good idea to hire an Utah Chapter 7 attorney. The bankruptcy attorney will be able to provide a range of services for you including a consultation of your situation, a review of what the short and long-term impact and benefits will be, and an overview of the process. The Utah chapter 7 bankruptcy attorney will also handle the whole process for you including handling the filing, notifying creditors, and handling all negotiations. As you are looking to hire an Utah bankruptcy attorney, you should contact the team with Alta Legal to learn more about how they can help you.