On behalf of Gregersen Law posted in bankruptcy on Thursday, July 20, 2017.
Perhaps, you've already confided in a close friend or family member regarding the financial problems you've been working to overcome for some time now. The economy in Utah took just as hard a hit during the economic crisis as most other states in the nation; so, if you were not quite able to fully recover, you are definitely not alone in the struggle. If more than one person has recommended you file Chapter 7 bankruptcy, the very mention of it may make you nervous.
That's not uncommon, especially since there's a real stigma attached to filing for bankruptcy as though it is something to be ashamed of. The reality, however, is that Chapter 7 bankruptcy is often a valuable tool that can help people get life back on track and move toward restored financial stability.
How to know if it's the right choice
What's best for one person may be an utterly bad idea for another since financial issues are so varied according to individual circumstances. Reviewing the following pros and cons of filing Chapter 7 bankruptcy may help you determine if it's a viable option in your particular situation:
- As far as debt relief options go, Chapter 7 bankruptcy is a relatively swift process, generally only taking three to six months to complete.
- You do not necessarily lose all your assets when filing for Chapter 7.
- You can often keep all wages or salary you earn after you submit your application for this type of debt relief.
- After you file for Chapter 7, if another financial disaster strikes before you are eligible to file for Chapter 7 again, you may be able to access other debt relief options in the meantime, such as Chapter 13 bankruptcy.
- One of the negatives associated with filing for Chapter 7 is that you will have a low credit score for years to come and will lose all your credit cards.
- If you pay alimony or child support, this type of bankruptcy does not remove those obligations.
- The fact you filed for Chapter 7 bankruptcy will likely negatively affect your ability to get a mortgage loan for a few years.
Under certain conditions, you may be able to avoid filing for bankruptcy altogether. You may be surprised how a careful review of finances and assets can unlock ideas for acquiring monies to satisfy existing debts. Even if you've already discussed these issues with your loved ones or friends, you could find it very helpful to reach out for additional support in order to seek new perspectives and explore options you perhaps did not know were available.
A Utah bankruptcy attorney possesses a wealth of information regarding the topic and can provide resources and guidance to help you rise above your current financial problems and plan a successful, financially sound future.