A fresh start requires considerable sacrifice
A Chapter 7 bankruptcy isn’t for everyone. For one, you must satisfy a means test to see if you qualify. For another, it very possibly means losing your home and car. And, of course, Chapter 7 can make it difficult for you to obtain credit, rent an apartment or even find a job. Fillmore Spencer LLC works with residents of Provo and other Utah Valley communities to ensure Chapter 7 will leave them in the best position to rebuild their financial lives.
Chapter 7 liquidates what you own, pays off your creditors as best as possible and discharges your remaining unsecured debts. As with Chapter 13, filing for Chapter 7 bankruptcy triggers an automatic stay against creditors’ efforts to collect the debts you owe them, including wage garnishments, foreclosure actions and car repossessions that may be under way.
While a Chapter 7 bankruptcy absolves you from having to make further payments on unsecured debts, such as medical bills, store credit card charges and some unsecured junior liens on your home, it generally cannot absolve you from obligations such as:
To see if you qualify for a fresh start through Chapter 7, we apply your income, minus certain expenses, against the state’s bankruptcy means test.
Some reasons to consider filing for Chapter 7 include:
Then again, you should also consider:
Bankruptcy law is complex, so you will want to consider all your options before taking the plunge.
The attorneys at Fillmore Spencer LLC have experience with all aspects of bankruptcy, but they also understand where you are coming from and the common mistakes people often make in filing for Chapter 7. Call us at (801) 851-1266 or contact us online today to schedule a free initial consultation.