The Many Times You’re Wrong About Utah Bankruptcy
Utah bankruptcy has always had an air of mystery around it, especially if you had never filed for one in the past. Not understanding what it is for could naturally strike fear into the hearts of first-timers. Believing that it is dishonest or unethical is perhaps the biggest misconception that you might have about it. Bankruptcy has its negatives, but it's actually the legal way to get some relief from your financial troubles.
If you think you need to file for bankruptcy but reluctant to do so, debunk these common erroneous beliefs first:
You Can File for Bankruptcy Whenever You Please
Any Chapter 7 bankruptcy attorney in Utah would tell you that you cannot start the process until you receive credit counseling and debtor education. You must fulfill these requirements six months before filing for bankruptcy.
This option is not the law’s way of giving you a free pass on your past financial mistakes, but rather it means offering you an opportunity to do things right. Without adequate financial literacy, you might bury yourself with debts again and be trapped in a vicious cycle for a long time.
You Can Escape All of Your Debts
No, this process will not make you immune from all debts. Utah has a list of non-dischargeable debts that bankruptcy cannot eliminate. Alimony and child support are two of the financial obligations you will still have after the process. Moreover, you will still be liable for fines and penalties for breaking the law.
You Cannot Get Credit in the Future
Bankruptcy is a fresh start, not a dead end. Although it will stay on your credit report for up to 10 years, you can start rebuilding your credit after bankruptcy. This process aims to free you some of your legal debt obligations to help manage your finances moving forward. In fact, it is not uncommon to receive credit offers with reasonable interest rates after filing for bankruptcy.
Bankruptcy is not all roses, but its benefits usually outweigh its disadvantages. Speak with an experienced lawyer to discuss your situation and know the right type of bankruptcy for you.