Utah Bankruptcy Lawyer Support

Utah Chapter 7 Bankruptcy Basics

J. Craig Carman, P.C., Utah Bankruptcy Lawyers, can help decide whether Utah Chapter 7 bankruptcy is right for you and if so, help you file for bankruptcy.

Utah Chapter 7 bankruptcy, sometimes called “liquidation bankruptcy,” cancels your unsecured debts without further repayment. In exchange, you might have to surrender some of your property. The whole Utah Chapter 7 bankruptcy process takes about three months, and commonly requires only one trip to the courthouse. Nevertheless, the legal council of a qualified Utah bankruptcy lawyer is vital to getting the most out of your bankruptcy.

If you’re thinking about filing Utah Chapter 7 bankruptcy, you’ll probably want to know what property you’ll be able to keep. Both federal and state law may allow you to keep your homestead, your automobile, household furnishings, and other basic items. These items are called “exempt property,” and the laws that specify what property is exempt are called “exemption statutes.” In the overwhelming majority of Chapter 7 bankruptcies filed by individuals, all (or virtually all) of the debtor’s property is exempt. Our Utah Bankruptcy lawyers can help you understand what property is exempt or not.

Filing for Utah Chapter 7 bankruptcy puts into effect what is called the “automatic stay.” The automatic stay immediately stops your creditors from trying to collect what you owe them. So, at least temporarily, creditors cannot legally empty your bank account; go after your car, house, or other property; or cut off your utility service.

Until your Utah Chapter 7 bankruptcy case ends, your financial problems are in the hands of the bankruptcy court. It assumes legal control of the property you own (except your exempt property, which is yours to keep) and the debts you owe as of the date you file. Nothing can be sold or paid without the court’s consent. The court exercises its control through a court-appointed person called a “bankruptcy trustee.” The trustee is mostly interested in what you own and what property you claim as exempt. This is because the trustee’s primary duty is to see that your creditors are paid as much as possible on what you owe them. The Utah bankruptcy lawyers of J. Craig Carman, P.C., can make sure you understand the trustee role and what rights you have in protecting your property.

If you’ve pledged property as collateral for a loan, the loan is called a secured debt. The most common examples of secured debts are mortgage loans and auto loans. In most cases, you’ll either have to continue to pay for the collateral according to the loan agreement or surrender it to the creditor. If a judgment creditor has recorded a lien against your property, that debt is also secured. You may be able to wipe out a judgment lien in bankruptcy.

If you’re a party to a contract or lease, you may choose to cancel (or reject) the contract or lease without further payment. Alternatively, you may choose to accept (or assume) the contract or lease by continuing to honor the terms of the written agreement.

At the end of the bankruptcy process, the debts that qualify for discharge are wiped out by the court. You no longer legally owe such debts. You can’t file for Utah Chapter 7 bankruptcy again for another eight (8) years from the date of your Chapter 7 Bankruptcy filing.

If you’re deeply in debt, Utah Chapter 7 bankruptcy may seem like a magic wand. But there are drawbacks. Bankruptcy can be intrusive. You are required to disclose your prior financial activities as well as your current property holdings, allowing the trustee to look for anything of value that the law allows to be taken and sold to pay your creditors.

Make sure you consult our expert Utah Bankruptcy Lawyers before making any decisions regarding bankruptcy. We can guide you through the whole Utah Chapter 7 Bankruptcy process to get the most out of you bankruptcy. Call J. Craig Carman, P.C., Utah Bankruptcy Lawyers, at (801) 531-6622 or send us a message through out contact page.

Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy will allow you to keep your house and car while making reduced monthly payments on your debts that are designed to work within your budget.

Chapter 13 bankruptcy is designed for people who make a significant amount of income or own a significant amount of equity in their homes; you either pay back a certain percentage of your income to your unsecured creditors or pay them based on the amount of unprotected equity in your home. In a typical Chapter 13 case, the monthly payments last three to five years.

If you are considering filing for Chapter 13 bankruptcy, you should first speak to an experienced attorney about your case. Contact our office at 801-531-6622 to set up a free consultation.