Bankruptcy -The Relief you Need.
If you are reading this page, chances are you haven't had a good night's sleep in some time. You may find yourself being harassed by creditors, or simply overwhelmed by debts and obligations you know you cannot pay. In many situations, you have already fallen so far behind on debts your paychecks are being garnished. If your paycheck supports only your month-to-month expenses, a garnishment can have serious consequences.
Indeed, if you are considering bankruptcy, you may be dealing with emotional turmoil as well as financial distress. Most people file for bankruptcy after undergoing at least one of three traumatic life events: divorce, job loss, or medical issues (in many cases, people will encounter all three traumatic events).
Personal debts incurred during these difficult times can become unbearable, and the prospect of paying them off can be unfathomable. Because you have some knowledge of your legal rights, you have begun to research bankruptcy attorneys in Utah.
Filing for bankruptcy can provide you with relief you cannot find anywhere else. When you first file for bankruptcy, you will be granted an "automatic stay." Your creditors will be notified that you have filed for bankruptcy, and they will be restrained from contacting you. Your paychecks will no longer be garnished (and any garnishments that do occur before the creditor is notified of the bankruptcy must be returned to you). If your utilities have been turned off for failure to pay, common in situations where creditors are garnishing paychecks, the utility company will be required to turn them back on (you may be required to make a deposit).
The relief an automatic stay can provide is one of the significant advantages to filing for bankruptcy. By filing for bankruptcy, you may find yourself finally able to pay your monthly bills (assuming your paychecks were being garnished). Without fears of creditor retaliation, you can finally get a good night's sleep.
Filing for bankruptcy will discharge many, if not all, of your debts. Because of this, you will have an opportunity to "catch up" on your finances on a long-term basis. Rather than paying on old debt (because of high-interest consumer loans, some people find themselves paying on individual debts for years without ever making a dent in the principal of the loan itself), you will have an opportunity to rebuild your credit score.
While your chapter 7 or chapter 13 bankruptcy may remain on your credit report for up to ten years, your individual debts (so long as they are dischargeable) will be "wiped clean." This will provide you with an opportunity to create a new creditor history, allowing you to prove your ability to pay your reasonable debts.
Is Bankruptcy Right for You?
Because bankruptcy is not right for everyone, you need to understand your options before filing for divorce. Not all debts are dischargeable (such as domestic support obligations and student loans), and if your dischargeable debts are insignificant, you may have alternative options.
Before you decide to file for bankruptcy, you may wish to review the following articles:
Is Bankruptcy Right for You? Ask Atticus Legal Group
Bankruptcy and Divorce
Should you decide to file for bankruptcy, or need to speak with an attorney regarding your rights, please contact Atticus Legal Group at 801-784-0529.