Individuals considering bankruptcy as a debt relief solution often assume that bankruptcy will not provide the necessary help in a timely enough fashion to be truly effective and worthwhile. This couldn’t be farther from the truth and is a myth of bankruptcy. It is important to consult with an experienced Utah bankruptcy attorney like one of the many qualified attorneys at the Morrison Law Group who can explain the process and timeline of both Chapter 7 and Chapter 13 bankruptcy cases.
A Chapter 7 bankruptcy case is a liquidation and results in a discharge of most debts often without the loss of any significant assets. A Chapter 7 bankruptcy case takes from three to five months. That’s less time than most civil and criminal cases. From the time the petition is filed, most Chapter 7 debtors find debt relief within no more than four months, while keeping most, if not all, of their assets and discharging most, if not all, of their debts.
A chapter 13 bankruptcy case is a reorganization and enables individuals with regular income to develop a plan to repay all or part of their debts over three to five years. Creditors are prohibited from starting or continuing collection efforts during this three- to five-year period.
Making payments through a Chapter 13 plan streamlines a debtor’s monthly debt service. It combines all or most of a debtor’s monthly debt payments into one single payment. Debt relief is available within a reasonably short time, and the result is a discharge of most debt.
Chapter 13 bankruptcy debtors may reorganize their debts, cure delinquent mortgage or automobile loan payments, and pay nondischargeable priority obligations in full through a repayment plan. A Chapter 13 repayment plan is limited to a three- to five-year period.
Thus, filing bankruptcy can provide relief in as little as 12 to 16 weeks in a Chapter 7 case. Debtors can reorganize their debt in as little as three to five years in a Chapter 13 case making one simple lump-sum payment to service all their debts. Thus, it is clearly a myth of bankruptcy that bankruptcy does not provide relief in an expedient, efficient manner. Consult with Morrison Law Group to learn how quicky bankruptcy may help solve your financial problems.
Talk to Theron Morrison and the Morrison Law Group about the timeline of Chapter 7 and Chapter 13 cases to better understand your bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.