Salt Lake City Bankruptcy Lawyers
Bankruptcy Overview
At Diaz & Larsen, P.L.L.C., we focus exclusively on representing individuals and businesses throughout Salt Lake City and Utah who are facing bankruptcy. We understand that many of our clients come to us when they are facing significant financial difficulty and are having trouble handling their mounting debts and bills. Our goal is to meet with our clients, discuss the available options, develop and implement the best possible bankruptcy or debt consolidation plan, and assist them throughout the process.
In general, three types of bankruptcies are available, depending on a person or business's financial situation:
Chapter 7
Chapter 7 bankruptcies, also called "straight" bankruptcies, are most appropriate for those individuals and businesses facing extreme debts, particularly unsecured debts such as credit cards and medical bills. These are the most common bankruptcies for individual debtors. Under a Chapter 7 bankruptcy, a person must sell his or her non-exempt assets and use the proceeds to pay debts. Debts that are not covered by the proceeds of the sale are generally discharged, with some exceptions.
Businesses can also declare bankruptcy under Chapter 7. However, businesses that declare Chapter 7 bankruptcy typically cease to operate unless the court-appointed Trustee chooses to continue the business.
Chapter 11
Chapter 11 bankruptcies are appropriate for businesses that need to reorganize. Under Chapter 11 bankruptcy, a business can continue to operate while it works on reorganizing its financial structure and repaying its debts in a timely manner. A business and its creditors agree to a confirmed repayment plan, and both parties must comply with the terms of the plan.
Chapter 13
Chapter 13 bankruptcies are most appropriate for individuals who are having difficulty paying their debts but still have a steady income. In a Chapter 13 bankruptcy, individuals develop a repayment plan to repay their debts over a period of three to five years. Once the plan has been agreed upon, the creditors must accept repayment under this plan.
Seek Experienced Legal Representation
When you are experiencing financial problems, it is important to consult with experienced attorneys who can explain your options and skillfully lead you through the bankruptcy process. We have dedicated our entire legal careers to bankruptcy matters and are committed to helping you with whatever financial difficulties you are facing. We also understand the lasting impact declaring bankruptcy can have and can advise you on whether bankruptcy is the right option for you. To schedule a free consultation, call Diaz & Larsen today.
