Filing Bankruptcy in Utah
Chapter 13 Bankruptcy in Utah
Many individuals will not qualify to file Chapter 7 Bankruptcy. You may have too many assets or you may not want to liquidate your property. Chapter 13 Bankruptcy may be a good option for you. Chapter 13 is not a liquidation bankruptcy and your unsecured debt will not be immediately discharged, but you may be able to stop home foreclosure, end property repossession, end wage garnishments, and stop creditor calls. The first step to file Chapter 13 Bankruptcy is to hire a Utah Bankruptcy Attorney who will file your bankruptcy petition and all bankruptcy forms, help you develop a three to five year bankruptcy repayment schedule, and appear in court for you. At the end of the three to five years, if you make all of your debt payments, your qualifying unsecured debt will be discharged.
One benefit of filing Chapter 13 Bankruptcy is creditors will not be allowed to continue their debt collection efforts while you are under Chapter 13 Bankruptcy protection. Filing your bankruptcy petition will impose an "automatic stay" and all debt collection efforts will be stopped. A trustee will repay your creditors according to the court approved bankruptcy repayment plan.
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Chapter 7 Bankruptcy in Utah
The first step in filing bankruptcy in Utah is to contact your Utah Bankruptcy Attorney. Your bankruptcy attorney will review your income and determine if you can file Chapter 7 Bankruptcy. Your bankruptcy lawyer will file your bankruptcy petition and schedules and all other bankruptcy forms.
Chapter 7 Bankruptcy is considered a liquidation bankruptcy. A trustee is assigned by the bankruptcy court to sell your assets and use the proceeds from the sale to repay your creditors. If you do not have assets, your bankruptcy case is a "no asset" case. All creditors have a priority rating and will be paid according to the order established under federal bankruptcy law.
After the bankruptcy petition is filed, an automatic stay will temporarily stop the collection efforts. Collections may continue if the bankruptcy judge determines there is "cause". You may qualify to file Chapter 7 Bankruptcy if you are an individual, corporation, partnership or married couple.
In 2005, the Bankruptcy Abuse Prevention and Consumer Act (BAPCPA) was passed. It made several changes to federal bankruptcy law. Now individuals are required to take a credit counseling course prior to filing bankruptcy, a financial management course prior to the discharge of their financial and individuals must now pass an income test to qualify to file Chapter 7 Bankruptcy. The main purpose of the BAPCPA was to require more individuals to repay their debt by filing Chapter 13 Bankruptcy.
To file Chapter 7 Bankruptcy, an individual must pass an income test. The test will review their median income from the last six months and compare it to the income of other Utah residents of similar size. If a family's income is less than other Utah residents they may file Chapter 7 Bankruptcy. If a family's income is more than the median income for other Utah residents, you must complete additional mean tests. Means testing will take your net income and subtract certain expenses such as your car payment, house payment, taxes owed, child support and school tuition (up to $1650) to determine if you will have enough disposable income to pay at least $6,000 ($100/month) toward your unsecured debts over the next 60 months. If you can do this, you will probably have to file Chapter 13 Bankruptcy. If you can not do this, but you could pay 25% of your disposable income toward debt repayment over the next 60 months, you may have to file Chapter 13 Bankruptcy.
The state median for the state of Utah is published by the United States Trustee Program. For the State of Utah, after March 15, 2009, the median income for a single wage earner was $48,832 and for a family of two it was $56,816. For a family of three it was $63,796 and for a family of four it was $71,919.
All the information provided above it general in nature and should not be considered as legal advice. Means testing can be complicated and it is important to talk to a Utah Bankruptcy Attorney to determine what type of bankruptcy you can file.
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Utah Bankruptcy Attorneys
Following is a list of bankruptcy attorneys who practice law in Utah. To contact one of these attorneys, please complete our free case evaluation form or call 800-859-0844
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Bringham City The Law Offices of Nathan W. Jeppsen, APC 862 S. Main Street, Ste. 3A Bringham City, UT 84302 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Salt Lake City The Rudd Firm, PC 357 W 200 S. Salt Lake City, UT 84101 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Sandy The Law Office of Franklin L. Slaugh 880 East 9400 South Sandy, UT 84094 |
Map & Directions Call Now: 800-859-0844 Contact for your Free Evaluation |
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Related Pages
Liquidation - as defined in our Bankruptcy Glossary
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Free Confidential Legal Evaluation for Utah Bankruptcy
Wouldn't you like to achieve the financial relief you deserve? Isn’t it time to talk to a lawyer to see if bankruptcy is the right choice for you?
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