Bankruptcy Lawyer Near Mapleton Utah
Whether you have been unable to keep up with your bills or have found yourself caught in a foreclosure loop, Bankruptcy chapter 7 can help you start over and get a fresh financial start. However, you need to understand what it is before you decide to file. There are many risks, including the possibility of bank levies, wage garnishments and foreclosure.
For starters, you will need to pass the Bankruptcy Code’s “means test” to qualify for the filing. The test will determine if you are able to repay your debts. If you can, you may be able to get rid of some of your debts in exchange for surrendering your property to a trustee. In the end, your assets are sold, and the proceeds are distributed to your creditors. In most cases, the debts are discharged.
In addition to passing the means test, you will need to provide information on your income and expenses. This includes details on any property that you own, as well as any payments that you make to your creditors. The bankruptcy court will also want to know if you have a lot of debt. If you have too much income, you might not be eligible for the Chapter 7 process.
For instance, the Bankruptcy Code deems it a best-case scenario if your average monthly payments are above the median for your household size. This amount is updated annually. Your average monthly payments may include car or mortgage payments, food, health insurance, utilities, and out-of-pocket medical expenses. You can use this figure to figure out if you are eligible for the process.
The true cost of a chapter 7 case will vary by market. Large metropolitan areas will have higher attorney fees, and simple, no-asset cases will have lower ones. If you have substantial debts, you should speak with a lawyer to find out what you can do to get a better deal. If you are a serial filer, you may not get the benefit of an automatic stay.
The bankruptcy courts have put together a number of other forms to complete before you submit your petition. These forms include the “chapter 7 affidavit,” the “means-tested schedule,” the “debtor’s statement,” and the “debtor’s plan.” The bankruptcy court can waive some of these costs if you are a low-income debtor.
You may also need to attend a credit counseling session before filing. This is to find out more about the bankruptcy process, as well as to get tips on how to avoid the filing altogether in the future.
There is a “means-tested” formula that is based on your income and debts, which is a fancy schmancy way of saying it is a complicated calculation. The resulting formula will tell you what you qualify for in the Chapter 7 process. There is a lot to learn about this process, and it is wise to consult a lawyer if you are considering this option.
The “means-tested” calculations will also determine if you are able to file for a Chapter 7 or Chapter 13 bankruptcy. You will need to pay a filing fee, and your bankruptcy court may be willing to waive this fee if you meet certain income criteria.
Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
If you have any questions or in need a Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676–5506
https://www.ascentlawfirm.com
https://goo.gl/maps/abyMDqWEv97VbdhW6
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