There might come an unfortunate moment when your finances hit a major setback and you became unable to repay your debts. There are many ways you can use to help solve this type of problem and one of them is by declaring or filing bankruptcy. This allows you to manage or even eliminate your debt depending on your circumstances.
There are several kinds of this condition that is based upon the situation you are in which has an appropriate federal law to help you on this. This includes filing for Chapter 7 bankruptcy Utah which is applicable for both an individual or company could file. Choosing this would liquidate all your assets and use them to pay all your outstanding debts, specially when reorganization cannot be done.
Most people perceive though that bankruptcy will clear them of all their commitments as debtors but there are a few debts that are not dischargeable. These should be paid over time such as child support, student loans and recent taxes or other well defined ones. Restrictions are also there on things you can do before filing for this.
It is unlawful for you to spend some large amounts of money or transfer assets or properties that can be used in repaying your creditors before liquidation. Research on what are these things you cannot do and the debts that are not dischargeable. Then approach a lawyer to help you in undergoing this process.
There are disadvantages when you proclaimed bankruptcy like having it on your credit report for ten years at most, affecting your score negatively. But this is better than staying on debt, missing payments, repossessions, lawsuits and defaults which is harder to explain to future lenders. And the process only takes around three to six months from filing to being relieved of debts.
You may lose your properties which is not exempted by the trustee from sale like several of luxury possessions you have. Majority of state exemptions lets sufficient things to get exempted so you will have enough possessions to cover your needs. They may even allow you to keep wages or salary you earn, even those you bought after filing Chapter 7.
You would lose all credit cards you own but getting new lines is possible to be obtained after one to three years but with higher interest rate. Getting a mortgage is nearly impossible to do, if ever you already do not have one. But there are lenders specializing to lend bad risks though this is bad for someone taking a step in solving their financial difficulties.
Declaring bankruptcy right now may make it difficult for you later to declare one again if something worse happens. This means when you completed the Chapter 7 process then you could not file for another one for six years. But you can still file for Chapter 13 if you need to, for multiple times, though each appears your credit report.
You would be explaining to the trustee or judge on why you are in this financial mess. Though they most probably have heard worst stories. So do not worry when telling them your story.