Chapter 7 Bankruptcy Attorney
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 bankruptcy attorneys work 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 bankruptcy in a nutshell
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:
- Spousal alimony
- Child support
- Court judgments against you for personal injury, wrongful death and fraud convictions
- Taxes you may owe local, county, state and federal governments
- Government-sponsored educational loans
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.
Why you might consider filing for a Chapter 7
Some reasons to consider filing for Chapter 7 include:
- The automatic stay protects you from collections agencies and creditors.
- No minimum debt amount is required.
- Any money you earn or property you acquire after you file is not available to creditors.
- You may be able to change your filing to a Chapter 13 if your financial circumstances change during your Chapter 7 filing.
- A Chapter 7 filing typically runs only six months.
Then again, you should also consider:
- The bankruptcy trustee will sell off most of your nonexempt property. If you have substantial equity in your home, a debt reorganization may be a surer way to keep your home, assuming you can qualify for Chapter 13.
- Cosigners of your loans (such as your spouse) will be liable for those debts unless they also file for bankruptcy protection.
- You cannot file for Chapter 7 again until eight years pass.
- Your credit reports will carry mention of your bankruptcy for up to 10 years.
Bankruptcy law is complex, so you will want to consider all your options before taking the plunge.
Trust your Chapter 7 filing to an experienced Provo law firm
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) 426-8200 or contact us online today to schedule a free initial consultation.
Fillmore Spencer LLC is located in Provo, Saint George, and South Jordan UT and serves clients in and around Eagle Mountain, Highland, Lindon, Orem, Provo, Pleasant Grove, Saratoga Springs, Springville, Elberta, American Fork, Wallsburg, Alpine, Mapleton, Midway, Lehi, Spanish Fork, Cedar Valley, Draper, Heber City, Payson, Salem, Goshen, Sandy, Santaquin, Riverton, Duchesne County, Juab County, Sanpete County, Summit County, Utah County, Uintah County and Wasatch County.