Chapter 7 Bankruptcy
Chapter 7 is the most common type of bankruptcy. This type of bankruptcy could eliminate all or most of your debt without any obligation to repay. Chapter 7 bankruptcy allows you to get a fresh start and move forward with your life. This type of bankruptcy is ideal if you don’t have very many assets. During the bankruptcy the trustee may liquidate some or all of your non-exempt assets to repay debt. The bankruptcy attorneys at LeBaron & Jensen, P.C. can help you protect your assets if you choose to file Chapter 7.
When you file Chapter 7 bankruptcy, creditors are immediately prohibited from contacting you or attempting to collect debt from you. If you are subject to any of the following financial conditions you may want to consider filing Chapter 7 bankruptcy:
- Your wages are being garnished: Generally, the only garnishments that will remain in place are child support and family law-related garnishments.
- You have a large amount of unsecured debt: unsecured debt includes credit cards, medical bills, broken leases and other consumer debt without any assets to secure the debt.
- Excessive parking tickets or uninsured motorist tickets preventing you from keeping your driver license.
- You have excessive debt and limited income, making it difficult to make payments.
- You have a delinquent balance due to a vehicle repossession or home foreclosure.
- You need to slow down or stop a repossession or foreclosure.
- You owe a significant amount of federal or state taxes. Although generally, personal state and federal taxes are not dischargeable, the bankruptcy may eliminate certain tax debt older than three years.
Some types of debt are not eliminated with a Chapter 7 bankruptcy. These include:
- Student Loan Debts
- Some IRS or State Income Tax Debts
- Child Support or Alimony Obligations
- Government Fines
- Debts order to be paid by a Divorce Decree
- Debts incurred by fraud
- Debts arising from intentional destruction of property
To file a chapter 7 bankruptcy in Utah, contact LeBaron & Jensen, P.C. at (801) 773-9488 in Layton.