With all of the fear around financial instability and insufficiency, it’s understandable that you’re concerned about the potential for bankruptcy. There are many different myths floating around about the possible ramifications of this filing.
But are these things really true?
Below, we’re exploring what really happens when you file for bankruptcy and busting three of the most common myths you’ll hear about the topic.
What is bankruptcy?
Bankruptcy is a legal filing process that requires the court to help you to settle your outstanding debts to creditors; whether that is through reorganization, repayment, or dissolution. Filing for bankruptcy requires you to successfully file and undergo the legal proceeding for the process through your local bankruptcy court. Seeking legal assistance can help you to navigate the process in confidence.
What happens when you file for bankruptcy?
When you file for bankruptcy, there’s a series of steps that you have to take. These steps may vary depending on the type of bankruptcy you’re filing for. Generally, you can bet on the steps below being included in your filing process:
1. Arranging your documents
This step may come as no surprise to you. In order to properly file your bankruptcy, you will need to gather your documents ahead of time and prepare them for reception by the court. Sample documents you’ll need to gather include:
- Any relevant tax returns (generally within the past five years)
- Any recent bank account statements or retirement account statements (generally within the past two years)
- Documents proving ownership and assigning wealth to your assets (i.e. your house, your vehicle, and any other material assets)
- Paystubs from the last full year showing your regular cash inflow
Depending on your state, your lawyer can advise of other supporting documents you’ll need.
2. Taking credit counseling
You will need to take credit counseling in order to file for bankruptcy. This is a requirement for Chapter 7 and Chapter 13 bankruptcy filings. These courses are designed to be inexpensive and may be eligible for fee waiver depending on your level of income. The entire goal of the course is to help you to determine if bankruptcy is right for you. Because of this, the course must be completed within 6 months of your bankruptcy petition date. Any proof of attendance or completion may be required to file with the court.
3. Bankruptcy-related request paperwork
Your court will require you to fill out several pages of forms, which your attorney can help you with. Generally, this will dictate what type of filing you’re seeking and will outline your total assets, inflow, and outflow.
4. Complete any outstanding steps and your hearing
After you complete these steps, your attorney will help to prepare you for the hearing process. The judge will inform you of the verdict and your next steps will be to act accordingly. This could look like creditor repayment, re-organizing your debts, or removing them completely from your record.
But how does bankruptcy affect my credit?
Now that you know how the general steps of bankruptcy work, we can look at how that will affect your credit. Below are some common myths about bankruptcy and your credit score.
1. “I can’t bounce back from bankruptcy.”
This is completely wrong. You can with proper repayment strategies and debt mitigation plans in place. Seeking financial counseling can help you to get a strong start in rebuilding your credit after bankruptcy.
2. “Bankruptcy removes all debt from my record.”
This is false. While some bankruptcy verdicts do result in debt removal or mitigation, you shouldn’t go into your bankruptcy process expecting total debt removal. Often, your verdict will be a mix of different solutions that involve repayment at lesser rates, repayment at full rates, re-organization or consolidation. In some cases, certain debts may be removed.
3. “Those who file for bankruptcy are irresponsible with their money.”
This couldn’t be further from the truth! This generalization is harmful and undermines the relief that bankruptcy can bring to those in dire straits. Often, responsible adults can be put in a position to file for bankruptcy due to prolonged or temporary hardship, such as a change of circumstance, loss of a job, or death of a loved one. High medical debt can also contribute and put people in tough spots, especially in the post-pandemic era.
Considering bankruptcy in Utah?
If you’re considering bankruptcy in the state of Utah, the team at Ascent Law wants to help. Our legal experts have had years of experience successfully navigating cases like yours to full resolution, and are able to walk alongside you every step of the way. For more information and to book your free intro call today, please connect with our office at (801) 432-8682, or you can visit our website. Our team looks forward to speaking with you soon!
Salt Lake City
Salt Lake City, Utah
|City of Salt Lake City|
“The Crossroads of the West”
|Named for||Great Salt Lake|
|• Type||Strong Mayor–council|
|• Mayor||Erin Mendenhall (D)|
|• City||110.81 sq mi (286.99 km2)|
|• Land||110.34 sq mi (285.77 km2)|
|• Water||0.47 sq mi (1.22 km2)|
||4,327 ft (1,288 m)|
|• Rank||122nd in the United States
1st in Utah
|• Density||1,797.52/sq mi (701.84/km2)|
| • Urban
||1,021,243 (US: 42nd)|
| • Metro
||1,257,936 (US: 47th)|
| • CSA
||2,606,548 (US: 22nd)|
|Time zone||UTC−7 (Mountain)|
|• Summer (DST)||UTC−6|
|Area codes||801, 385|
|GNIS feature ID||1454997|
|Major airport||Salt Lake City International Airport|
|Website||Salt Lake City Government|
Salt Lake City (often shortened to Salt Lake and abbreviated as SLC) is the capital and most populous city of Utah, as well as the seat of Salt Lake County, the most populous county in Utah. With a population of 199,723 in 2020, the city is the core of the Salt Lake City metropolitan area, which had a population of 1,257,936 at the 2020 census. Salt Lake City is further situated within a larger metropolis known as the Salt Lake City–Ogden–Provo Combined Statistical Area, a corridor of contiguous urban and suburban development stretched along a 120-mile (190 km) segment of the Wasatch Front, comprising a population of 2,606,548 (as of 2018 estimates), making it the 22nd largest in the nation. It is also the central core of the larger of only two major urban areas located within the Great Basin (the other being Reno, Nevada).
Salt Lake City was founded July 24, 1847, by early pioneer settlers, led by Brigham Young, who were seeking to escape persecution they had experienced while living farther east. The Mormon pioneers, as they would come to be known, entered a semi-arid valley and immediately began planning and building an extensive irrigation network which could feed the population and foster future growth. Salt Lake City’s street grid system is based on a standard compass grid plan, with the southeast corner of Temple Square (the area containing the Salt Lake Temple in downtown Salt Lake City) serving as the origin of the Salt Lake meridian. Owing to its proximity to the Great Salt Lake, the city was originally named Great Salt Lake City. In 1868, the word “Great” was dropped from the city’s name.
Immigration of international members of The Church of Jesus Christ of Latter-day Saints, mining booms, and the construction of the first transcontinental railroad initially brought economic growth, and the city was nicknamed “The Crossroads of the West”. It was traversed by the Lincoln Highway, the first transcontinental highway, in 1913. Two major cross-country freeways, I-15 and I-80, now intersect in the city. The city also has a belt route, I-215.
Salt Lake City has developed a strong tourist industry based primarily on skiing and outdoor recreation. It hosted the 2002 Winter Olympics. It is known for its politically progressive and diverse culture, which stands at contrast with the rest of the state’s conservative leanings. It is home to a significant LGBT community and hosts the annual Utah Pride Festival. It is the industrial banking center of the United States. Salt Lake City and the surrounding area are also the location of several institutions of higher education including the state’s flagship research school, the University of Utah. Sustained drought in Utah has more recently strained Salt Lake City’s water security and caused the Great Salt Lake level drop to record low levels, and impacting the state’s economy, of which the Wasatch Front area anchored by Salt Lake City constitutes 80%.
About Salt Lake City, Utah
Neighborhoods in Salt Lake City, Utah
Poplar Grove, The Avenues, Ballpark, Lower Avenues, Downtown, Woodbury, Central City, Neighborhood House, Salt Lake City Community Development, Rio Grande, The Neighborhood Hive, Neighborhood Services, University Neighborhood Partners, Salt Lake City, Neighborhood Auto Service, Sunnyside Park, Building at Rear, 537 West 200 South, Washington Square Park, Area 51, Brigham Young Historic Park
Things To Do in Salt Lake City, Utah
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Reviews for Ascent Law LLC Salt Lake City, Utah
We've gotten divorce and child custody work from Ascent Law since the beginning because of my ex. We love this divorce firm! Staff is gentle, friendly and skilled. Tanya knows her stuff. Nicole is good and Ryan is fun. Really, all the staff here are careful, kind and flexible. They always answer all my questions, explain what they're doing and provide great legal services. I personally think they are the best for divorce in Utah.
I have had an excellent experience with Ascent Law, Michael Reed is an absolutely incredible attorney. He is 100% honest and straight forward through the entire legal process of things, he also has a wonderful approach to helping better understand certain agreements, rights, and legal standing of matters, to where it was easy to know whats going on the entire process. I appreciate the competency, genuine effort put forth, and assistance I received from Ascent and attorney Michael Reed, and I will be calling these guys if ever I have the need again for their legal assistance! 5star review Wonderful attorneys!
This review is well deserved for Ryan and Josh. New clients should know they are worth the 5 star rating we give them. We needed 2 sessions from them because of the complexity of the matter, but they are both very passionate about his helping others in need. My sister needed bankruptcy and I needed divorce. Sometimes they go hand in hand but a large shout out to this team - also Nicole is one of the sweetest people you ever did meet - she offered me warm cookies!
Mike Anderson and his colleagues & staff are knowledgeable, attentive and caring. In a difficult and complex case that eventually went to trial, Mike was the voice of reason and the confidence I needed. His courtroom abilities are amazing and I felt his defense of me was incredible. His quick thinking and expertise allowed for a positive result when I felt the World was crumbling. His compassion, after the case, has helped me return to a good life. I trust Mike and his staff. They are friendly and very good at what they do.
I worked with Attorney Alex and Paralegal Ami in my divorce case. I got to know the team very well over the course of two years. I cannot think of a better team to have worked with. Ami and Alex are not only exceptional law professions who are very knowledgeable and thorough, they are also the best human beings who empathize with the emotions I was experiencing. Alex was conscious of my budget and worked efficiently to try to reduce unnecessary legal expenses. My case also involved some dealings with a foreign country that Alex and his team had previously dealt with. They did an amazing job addressing cultural barriers in a very respectful manner and did not fall short in quality of work or in standards when dealing with some of these new challenges. Ami deserves a medal for being extremely professional, calming, and compassionate when it is needed most. When you need family law attorneys, call this firm. I now feel I can move forward with grace and dignity.