The 7 Main Steps of Filing Salt Lake City Bankruptcy
When most people think of filing bankruptcy, they think of lengthy court processes and headaches. In reality, Salt Lake City bankruptcy is a straightforward and simple process.
Here are the 7 main steps that you should expect as you file Salt Lake City bankruptcy:
- Have a consultation with an attorney: Your attorney is your #1 resource for understanding your options and choosing the best path.
- Choose between Chapter 7 or 13: Chapter 7 bankruptcy suits those with fewer assets that want to eliminate all debt, while Chapter 13 suits those who want to keep their assets and restructure their debt payments.
- File Chapter 7 or Chapter 13: After filling out the appropriate paperwork, you submit your bankruptcy to court.
- An automatic stay protects you: Once you file, creditors are immediately notified to stop pursuing you for debt collections, garnishments, and foreclosures.
- Attend the 341 Meeting and Confirmation Hearing: For Chapter 7 and 13 bankruptcy, you are required to attend a non-court meeting where you discuss your financial situation with creditors and verify your situation. For Chapter 13, there is an additional meeting in court where you review your proposed debt payment plan with the court to have it approved or revised.
- Take a credit counseling class: A simple, required class will teach principles of debt, budgeting, and finances.
- Debt is discharged or paid off over time: Once 3-5 months have passed, your debts are eliminated with Chapter 7. With Chapter 13, you begin making manageable debt payments for 3-5 years.
The Salt Lake City bankruptcy process is less complex than most people think. It was designed as a way to spare debtors from mounting debts. We hope you feel comfortable that bankruptcy can help you improve your financial situation.
To see how we can help you, visit our Salt Lake City bankruptcy home page.