Chapter 7 of Chapter 13: What Bankruptcy Is Right for Me?
Embarking on the journey of financial recovery often feels akin to navigating a complex labyrinth. It can be challenging, especially when you’re required to choose between Chapter 7 and Chapter 13 bankruptcy in Utah. At Alta Legal, we’ve walked this path alongside countless clients, and we’re here to shed light on these processes for you.
Chapter 7 vs Chapter 13 Bankruptcy in Utah
Deciphering the right path between Chapter 7 and Chapter 13 bankruptcy in Utah fundamentally hinges upon your unique financial circumstances.
Chapter 7 bankruptcy, also known as ‘liquidation bankruptcy,’ provides an opportunity for individuals with limited income to discharge most of their unsecured debt, such as credit cards or medical bills. However, it’s not a one-size-fits-all solution. If your income surpasses the state median, or you possess significant assets you wish to keep, Chapter 7 bankruptcy may not be a viable option.
Alternatively, Chapter 13 bankruptcy offers a ‘reorganization bankruptcy’ route for those who have regular income and can repay a portion of their debt over time. This type of bankruptcy allows debtors to retain their assets and works as a form of debt consolidation plan. However, the eligibility for Chapter 13 bankruptcy in Utah is also income-based, and the debtor’s total debt must not exceed a certain limit.
Navigate Bankruptcy With the Help of a Bankruptcy Attorney in Taylorsville, Utah
Selecting between Chapter 7 and Chapter 13 bankruptcy in Utah can feel like an arduous journey. But remember, you don’t need to traverse this path alone. At Alta Legal, our bankruptcy attorney in Taylorsville, Utah, is skilled in guiding clients through these decisions. With a keen understanding of Utah’s bankruptcy laws and a knack for attentive, personalized counsel, we can illuminate the way forward. Contact us today, and let’s commence your journey toward financial recovery.