In Utah, consumers need viable opportunities for managing their debts. These strategies are based on the current financial circumstances of the consumer. An attorney provides bankruptsy for consumers by determining what option is most suitable.
Loan Modifications for Mortgages
A loan modification is an option for homeowners. It provides them with changes for the terms of the mortgage loan. The law prevents lenders from including predatory lending tactics in the loan. They must prove affordability for the borrower. If they failed to ensure that the borrower could affect the loan, they are liable. This gives the borrower the opportunity to change these terms. It could also prevent the foreclosure process.
Acquiring a Settlement Offer
Bankruptcy Help could include the acquisition of a settlement. The attorney could negotiate with the creditors to reduce the value of the debt. This could result in up to fifty percent off the balance owed. It could also provide an opportunity to pay smaller payments to settle the debt. If the debt is included in a bankruptcy claim, the creditor cannot adjust the terms back to the original debt value. This gives the consumer a more viable settlement choice.
Starting a Chapter 13 Claim
The attorney could help the consumer with a chapter 13 claim, if they qualify. They must have an income that is more than the median. The jumping off point for this value is the state median. The state median is $59,770. The consumer must provide six months’ worth of income statements that prove a greater income value.
Without this evidence, the consumer cannot acquire a bankruptcy claim. They must also complete credit counseling programs before they start the claim. They must show the court evidence of completion. Once they acquire eligibility, they gain an automatic stay for up to five years through their claim.
Is Chapter 7 the Right Choice?
Chapter 7 can also provide Foreclosure Help Utah. It consists of liquidating the consumer’s assets to acquire proceeds to settle debts. The consumer acquires an automatic stay for up to six months. They may also acquire the exempted value for the properties included in their bankruptcy case.
In Utah, consumers should review all options for settling debt. An attorney could help them to identify the most suitable choice for their needs. This may include bankruptcy, loan modifications, or settlement offers. Consumers who need assistance with these opportunities should contact a Bankruptcy Attorney Salt Lake City for more information today.