1. What is the difference between a Chapter 13 and a Chapter 7?

2. How do I know if I qualify for a Chapter 13?

3. Is the initial consultation really free?

4. How do I get started?

5. If I file a Chapter 7 can I still have a car? a credit card? a house?

6. How will this affect my credit?






1. A Chapter 7, or straight bankruptcy, allows a person to have their unsecured debts (ie. credit cards, medical bills, bounced checks) dischared by the Federal courts. This means you are no longer obligated to pay these debts.
vvvA Chapter 13, or debt consolidation, is an alternative to straight bankruptcy. It allows a person to consolidate most of their bills into an affordable monthly payment. This includes: back taxes, late child support payments, overdue mortgage payments, credit cards, medical bills, and other unsecured debts . A Chapter 13 helps someone protect assets and equity, while preventing legal action, such as foreclosure, garnishments, or repossessions.

2. People who are usually not suited for bill consolidation are those who are current on their credit card debts, and have a positive monthly cash flow, which means a little money left over each month after they pay their bills. If something unusual casues a financial problem, these people should first check with their bank or credit union. Bill consolidation could be an option for the future; however, if things got worse.
---People who typically qualify for bill consolidation are those who are behind on their payments and feel like they are slowly sinking more and more into debt. It allows individuals to organize all their bills into one low monthly payment.

3. Normally, a consultation costs $150.00, but we have come to realize that if you had that kind of money right now you would probably use it to pay a debt. Therefore, we are willing to take the risk and pay for your initial consultation ourselves. The consultation will cost us $150.00. We will pay that cost as long as you show up for your appointment. In other words, we will work with you if you are serious about getting out of debt. If, after you talk with us, you determine that the alternatives we give you don't save you enough money, don't do it.

4. To schedule a free, no obligation, appointment please call our office. During normal business hours you can reach us at 801-521-6661 or call our 24 hour message line at 583-BILL or 583-2455. By calling these numbers you can find out more about our services or leave contact information so we can schedule an appointment to discuss your individual situation.

5. When you file a straight bankruptcy you eliminate your debt. This makes you an excellent risk to the car dealer and it gives him the opportunity to charge you a little bit more interest and ask for more money down, but he knows that you're not going to do a bankruptcy again for quite some time. In short, most car dealers will be willing to lend you money for a vehicle.
vvvMany people will say, "If I file a chapter 7 I'm not going to be able to get a credit card." Not true! There are banks where you can open up a savings account and they'll hold that savings account as collateral for a Mastercard or Visa. These cards are considered secured Mastercards or Visas. Your savings account secures the card. This is where you start.
vvvPerhaps you've been told that filing a bankruptcy will prevent you from purchasing a home. Well, in the past that may have been true, but today it's not. You will have to save up a little bit of cash, but after one year of established credit (post-bankruptcy), conventional lenders—banks and savings & loans—will consider you for a home loan. After two years, FHA—the Federal Government—will consider you for a low interest home loan. Bankruptcy was created so that people shouldn't have to suffer. They should have the opportunity to have a fresh start and that's exactly what a Chapter 7 gives you.

6. At this point your credit report doesn't look good to begin with, but a Chapter 13 will stop the aging process. In other words, those things that are two months or three months or four months behind will never get any older than that. That's going to look good for you. If your debts are really old, well you might as well get rid of them and start fresh with a Chapter 7. The thing to remember is that the worst your credit report will ever look is the day that we file your petition.

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