Although either kind of bankruptcy will stop an approaching Utah foreclosure, which one should you choose?
Today’s blog post is summarized by this sentence:
Generally, file a Chapter 7 “straight bankruptcy” if it buys you enough time, and otherwise file a Chapter 13 “adjustment of debts” if you need more time, but like so much in life, it really depends on all your circumstances, with some examples of when Chapter 7 would be appropriate and a list of special advantages that Chapter 13 can get you.
The Simplistic Guideline
If you are behind on your mortgage payments, …
As Utah Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” are quite different, be open-minded about which is better.
Here’s the sentence we're explaining today:
Given how starkly different Chapter 7 is from Chapter 13, choosing between them can be less straightforward than you think—sometimes it IS very obvious which will work better for you, but sometimes the “other” option will help in ways you totally didn’t expect, as an example illustrates—so keep an open mind as you have your initial meeting with your attorney.
Chapter 7 and Chapter 13 …
Bankruptcy empowers Utahns with options, including “straight bankruptcy vs. an “adjustment of debts.”
This is the sentence we're focusing on today:
Bankruptcy is a Constitutionally and legally valid option for addressing your debts in an honest and realistic way through (for consumers) two primary choices—Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts (and a couple possible others), within which you usually have some options about how to deal with particular creditors.
The U.S. Constitution, which was ratified 227 years ago as of this last June, specifically gave Congress the “Power… To establish… uniform Laws …
If you want to prevent your spouse’s separate assets from being potentially taken by a bankruptcy trustee, don’t take the risks of filing a bankruptcy case without your spouse without first finding out if 1) those assets are already protected by available property exemptions, 2) can be protected through a joint Chapter 13 filing or 3) through smart pre-bankruptcy planning.In the right circumstances it’s sensible for a married person to file…