When an individual files for Utah Chapter 7 bankruptcy, the action will typically eliminate or discharge most if not all unsecured debt. Unsecured debt consists of credit-card balances, medical bills and installment loans for appliances, furniture, etc. The debtor will be able to keep all of their property and personal belongings. If the debtor owes on a house or car and the payments are current, the debtor is usually allowed to keep these assets under chapter 7 case law. Chapter 7 bankruptcy is complicated; it is highly recommended you do not attempt to file without a lawyer.
The first step in filing for Utah Chapter 7 bankruptcy is to meet with an attorney who is skilled in bankruptcy and the laws pertaining to it. Often the first consultation with a lawyer is at no cost and will not take more than 30-45 minutes. Once the consultation is over and you and the lawyer have agreed to proceed, the lawyer reviews your current assets, your total debt and your current budget. When the lawyer knows your current situation, he or she is in a good position to give advice on the legal direction to take for your debt relief.
Federal law demands that all fees for the bankruptcy lawyer are paid in advance of the filing of the plea. At times, this makes it very difficult because often the bankrupt does not have the money to pay the lawyer. Many lawyers who deal in bankruptcy know this in advance and will take the case if there is a third party who agrees to pay the fees. This arrangement allows the procedure to go ahead; the third party guarantor is usually billed monthly until the fee is satisfied.
When Chapter 7 bankruptcy is filed, the law demands that the debtor attends classes in finance management, the first is Credit Counseling. This class is designed to help the debtor fully understand their position and evaluate it. The second mandatory class is called Debtor Education; this is a class which helps the debtor with post-discharge issues that will pertain to their personal finances. These classes are mandatory.
After the lawyer has all the information pertaining to your situation, he can prepare the petition for Utah Chapter 7 bankruptcy. Accuracy with the petition is very important, and you will have to sign agreeing to its authenticity and accuracy.
The moment the petition is filed in the court, an automatic stay becomes effective. This stops creditors from undertaking any collection process at all; the collectors cannot call you or contact you in any fashion what so ever. Your wages cannot be garnished nor can any of your possessions be reposed.
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