Why Do People File Bankruptcy in Utah?
Generally, in the United States, bankruptcy is the way to get a fresh start when a debtor is unable to pay his financial obligations in full. The same holds true in Utah. Because of these tough economic times, many people have to deal with debts that they are unable to pay. They have no choice but to file for bankruptcy. Bankruptcy laws vary from state to state, and people filing for bankruptcy in Utah need a lawyer with Utah bankruptcy law experience.
What is a Chapter 7 and Chapter 13 Bankruptcy
The two most common kinds of bankruptcy Utah residents can file in court: a Chapter 7 bankruptcy, and a Chapter 13 bankruptcy. Each has different criteria and procedures according to the debtor’s circumstances.
- Chapter 7 Bankruptcy – Uses the liquidation of property to cover the debt to the creditor and eliminates unsecured debts from credit cards, medical debt, utility bills, and personal loans.
- Chapter 13 Bankruptcy – Simply reorganizes the debt and allows the individual a repayment plan for a specified period, typically 3 to 5 years. In addition, it may allow the individual to keep property that may be at risk under a Chapter 7.
Assets That Are Exempt
Utah bankruptcy laws will have a specific list of assets a debtor can claim as exemptions from bankruptcy court proceedings. Understanding these exemptions for bankruptcy Utah has are very important to the interest of the debtor. Some assets a debtor can claim as exemptions under Chapter 7 for example include:
- Primary Residence
- Tools and Work Equipment
- A Vehicle
- Certain Items of Personal Property
- Pension or Public Benefits
We do not recommended filing bankruptcy without legal representation. For instance, Chapter 13 can have plan payment help. A layperson simply cannot know all of the legal nuances of Utah bankruptcy laws for reasons such as missed exempt assets, forgetting to file important paperwork, questions that can’t be answered, and more.
Contact an Experienced Utah Bankruptcy Attorney
At Pearson, Butler & Carson, PLLC, we strive to get you the best results for you under the Utah bankruptcy law!
For more information and a free initial consultation, contact one of our bankruptcy attorneys – Jeffrey R, Butler at (801) 495-4104 or by email at firstname.lastname@example.org. He can advise you if qualify to file a Utah Chapter 7 bankruptcy or Utah Chapter 13. Contact our South Jordan Bankruptcy Lawyer and Salt Lake City Utah Bankruptcy Attorney team today.