Salt Lake City Utah Chapter 13 Bankruptcy Lawyer
After a Utah Chapter 7 Bankruptcy, the Utah Chapter 13 Bankruptcy is the most common bankruptcy for an individual or family who are trying to deal with their heavy debt load.
Benefits of a Utah Chapter 13 Bankruptcy Over a Utah Chapter 7 Bankruptcy
One of the main differences between a Chapter 13 and a Chapter 7 is that in a Chapter 13 bankruptcy you don’t actually liquidate your debts. Instead, you enter into a payment plan to pay your debts back. The benefit of a Chapter 13 bankruptcy is that in most cases you will not be required to pay interest on your debts. Thus, every payment you make goes straight to the principal.
Another beneficial difference of a Chapter 13 over a Chapter 7 bankruptcy is the time period for which you are able to prevent having to surrender your assets. In Chapter 7 your non-exempt assets will typically be surrendered and sold within just a few months. In a Chapter 13 bankruptcy, however, you can hold on to those assets for about three to five years, and assuming you comply with your payment plan, indefinitely.
Everything is Automatically Stayed
One of the great benefits of filing for bankruptcy is what is known as the “automatic stay.” It requires all of your creditors to stop their collection efforts the moment you file for bankruptcy. One of our lawyers can explain to you all of the benefits of the automatic stay when you come in for your free consultation.
Is Chapter 13 Right for Me?
A Chapter 13 bankruptcy is typically for those who have constant income and a bunch of non-exempt assets, but have simply falling behind in their debt payments. It will allow you to hold on to your non-exempt assets so long as you comply with your payment plan.
It is also for those who want to hold on to their house. Although you will not always lose your house under Chapter 7, a Chapter 13 bankruptcy is generally the route to take if you want to keep your house.
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