In Utah, filing a bankruptcy gives you the opportunity to overcome the financial hardship you’re going through. It can eliminate the legal obligation that you owe and have a fresh start. The court can prevent your creditors from employing debt collection tactics, like wage garnishment, so you can be in control of your income and continue supporting your needs.
Any experienced bankruptcy attorney in Provo would tell you, though, that this option is not going to solve all of your financial problems. Here are some of the things it will not do for you:
Stop Foreclosure Permanently
A Chapter 7 bankruptcy can only provide a short-term defense against foreclosure. Its automatic stay strips your lender the right to take your home, giving you some breathing room to catch up with your payments. However, it doesn’t last forever. It can also be delayed or lifted by the court for certain reasons.
Eliminate All Debts
A bankruptcy can discharge many debts, but not all debts. In Utah, non-dischargeable debts include alimony and child support obligations. If you get involved in a DUI case that results in personal injury or death, a bankruptcy cannot bail you out. Moreover, it cannot make you immune to fines and penalties for any violation of the law you might commit. If you have income tax debts or student loans, you may still be held responsible for them after filing bankruptcy.
Save a Cosigner
If a friend or relative co-signed a loan with you, your bankruptcy will only protect you. Your co-signer may still have to pay portions or the entirety of the debt. Unless you file a Chapter 13 bankruptcy and provide you with a full payment plan, your co-signers may continue to be susceptible to the creditor’s efforts.
Understand the benefits Utah provides you if you declare bankruptcy. As not every type of bankruptcy may make sense to your situation, speak with an experienced lawyer to make the best decision.