Chapter 7 Bankruptcy is a process that entitles you to a fresh financial start. In a Utah Chapter 7 bankruptcy, individuals can wipe out many types of unsecured debt. Unsecured debt is debt that you do not have to put up collateral for, such as a debt incurred from a credit card, or medical bills.
Chapter 7 Bankruptcies are available to individuals, married couples, sole proprietorships, partnerships, and corporations. Debtors are required to attend a meeting of creditors approximately one month after a case is filed.
The process for this type of bankruptcy usually takes about three to five months. Upon completion, the debtor’s includable debts are eliminated or discharged, meaning that the debtor no longer owes on those debts after the bankruptcy. Before you can file for a Chapter 7, you must go through credit counseling with an agency approved by the United States Trustee, and complete a debtor education course.