No one ever sees themselves having to file bankruptcy when they start out in their adult life, but in today’s turbulent economy it happens way more often than you might think. There are, of course, a few different types of bankruptcy that you can file, two of the main ones being Chapter 7 and Chapter 13. Many people aren’t sure exactly which type they need to file when the time comes. With that being said, read on below for some of the top reasons you file Utah Chapter 13 bankruptcy instead of Chapter 7.
It’s Possible to Leave Chapter 13
When you file Chapter 7, if you incur more debt, you are just stuck with that debt to take care of on your own. In Chapter 13, it’s possible to add that debt to your bankruptcy claim so you can start fresh.
You get to Keep Everything
With this type of bankruptcy, it’s possible for you to keep everything you own. With Chapter 13, you get to pay off your debt without losing all of your cash and assets. Whereas with Chapter 7, you could end up losing even the shirt on your back if you aren’t careful. This is not to say that Chapter 7 doesn’t work for some people, it’s just not the only option.
Repayment can be small
When filing this type of bankruptcy, it is possible for your payments to be tiny. In other words, your repayment is based on your income. Many people have gotten payments as low as $150 a month by filing Chapter 13.
These are just a few of the reasons that are filing Chapter 13 is preferable to Chapter 7 in many cases. The choice is yours, and your attorney can help you make the right decision to suit your situation. For more information visit The Utah Bankruptcy Lawyer.