Sandy bankruptcy attorneyBankruptcy is a very complicated process, and not a decision that should be made without first consulting a knowledgeable Sandy bankruptcy attorney. If you are considering bankruptcy, speak to Tom McAvity at Northwest Debt Relief Law Firm. He has the experience necessary to help you achieve financial relief and begin the road to recovery.

Why File Bankruptcy?

The decision to file bankruptcy is not an easy one. Most people who file have exhausted all other options before deciding to inquire into bankruptcy. Below is a list of the many reasons that lead people to filing bankruptcy:


Divorce is one of the more stressful situations a person can face. Between losing a partner and possibly being separated from your children, the mental devastation of a divorce is horrible. In addition to the mental distress, the financial burden the divorce creates leads many people to debt.

Medical Issues

If you get sick and miss work due to the illness, you will face two problems. You lose income from not working and your medical care costs money. As a result, it gets very difficult to catch up.

Unemployment/Reduced Income

If you are laid off or your hours get reduced, your finances will take a big hit. Most people are not prepared for loss of income, whether it be losing a job or your salary being reduced. Many people incur debt as a result of the lost income as they need credit cards to get by.


People value their homes more than anything else. Falling behind on your mortgage will lead you down a path to bankruptcy. The bankruptcy could be used as a tool to postpone the foreclosure or discharge the debt from the foreclosure.

Vehicle Repossessions

If your car has been repossessed, you are facing two problems. First, you lose your car in the repossession. To add insult to injury, the government auctions your car off for less than what you owe. They then hold you responsible for the remaining balance. If you could not afford to pay for your car when it was in your possession, imagine how tough it is to owe money on it after you lost the vehicle.

If your situation falls into one of the categories listed above, Sandy bankruptcy attorney Tom McAvity can answer your questions and advise you as to what options you have.

What Is the Difference Between Chapter 7 and Chapter 13?

There are two chapters for individuals to file in bankruptcy: Chapter 7 and Chapter 13. The chapter that best suits your needs depends on your situation. Here is a breakdown of the two chapters:

Chapter 7

Chapter 7 bankruptcy discharges all of your debts, outside of student loans, child support/alimony, certain taxes and debt related to criminal activity. If any assets are involved that can’t be exempted, then those assets will be liquidated and distributed to the creditors. You have to qualify from a financial standpoint in order to file Chapter 7. Chapter 7 is a relatively affordable and quick process that allows you to start fresh financially in a very quick amount of time. Upon filing, all of your creditors freeze and can longer initiate collection while your case is open. If your debts are discharged, they are barred forever from initiating collection on the debt.

Chapter 13

Chapter 13 is a reorganization of your debt. Instead of discharging the debt, you make payments to the court over a three to five year process. That payment allows the unsecured creditors to receive some, but not all of the debt that you owe them. Many people who are facing foreclosure file Chapter 13 because it allows them time to catch up on their mortgage.

If you need help on understanding which chapter best suits your situation, contact Sandy bankruptcy attorney Tom McAvity today for a free consultation.

What Are the Benefits of Filing Bankruptcy?

There are many benefits to filing bankruptcy, whether it’s a Chapter 7 or Chapter 13:

  • Eliminates debt: Whether you file a Chapter 7 or 13, the bankruptcy’s final benefit will be the elimination of debt.
  • Freezes creditors: Bankruptcy freezes your creditors and disallows them from attempting collection while in either a Chapter 7 or 13. Bankruptcy therefore eliminates the stress caused by creditor harassment.
  • Provides a fresh start: Whether you file a chapter 7 or 13, the best benefit of the bankruptcy filing will be the relief you will feel upon receiving your fresh start. You will no longer have to lose sleep over how you are going to pay your bills or if you will lose your home or your car.

Contact a Sandy Bankruptcy Attorney Today

Sandy bankruptcy attorney Tom McAvity is a knowledgeable bankruptcy attorney who will ensure your case goes as smoothly as possible. Call today to learn how you can free yourself from debt and achieve financial freedom.