There are generally two chapters of bankruptcy available to individuals–chapter 7 and chapter 13. If you qualify for chapter 7 then usually it is better for you to file for a chapter 7 bankruptcy rather than chapter 13 bankruptcy. A chapter 7 is more favorable than a 13 primarily because it is less expensive and takes less time to complete.
Here are some of the key features of a chapter 7 bankruptcy.
- Chapter 7: Liquidation
- Keep property allowed under exemptions, all other assets liquidated
- Approximately 3 months from date of petition filing to discharge of debt
- If you make over the median annual income in Utah, you might not be able to file chapter 7
- Cost: Court filing fee, attorney’s fees
- The advantage of chapter 7 is that you can discharge most debts and you can get a fresh start in a shorter amount of time
- The disadvantage of chapter 7 is that you may not be able to keep some property
Here is a basic timeline of how a chapter 7 usually proceeds.
1. Planning
– Free consultation
– Case acceptance (filing fee plus attorney’s fees)
– Compile documents
– Complete Credit Counseling Class (pre-petition class)
2. Filing
– Petition Filing
– Automatic Stay goes into effect (stays creditors)
3. Meeting of Creditors
– §521 Required Documents (make sure we have all documents)
– §341 Meeting of Creditors (approximately 1 month after filing)
– Complete Financial Management Class (post-petition class)
4. Discharge of Debt
– Approximately 3 months after filing your debt is discharged
Not sure if chapter 7 is right for you? Please feel free to call me, text me, email me, or fill out the Free Bankruptcy Consultation Form and I will get in contact with you.
Email: sean@seanwoodlaw.com
Cell phone: 385-865-7564
Sean Wood 