Bankruptcy in Utah
People have many questions about bankruptcy and hold off filing bankruptcy because they have a lot of questions and concerns about bankruptcy. Below are some questions that are clients at Pearson, Butler & Carson, PLLC, have asked our attorneys about bankruptcy.
Question: What is Bankruptcy?
Answer: Utah bankruptcy law is based on federal consumer protection law. Bankruptcy rules have been set by the United States Congress and allow you to have your debts forgiven that fit within the bankruptcy guidelines. Utah bankruptcy laws understand that sometimes things do not work out the way that people plan and that people can move on with their lives without being burdened with financial obligations the rest of their lives.
Question: Will filing bankruptcy in Utah stop my garnishment?
Answer: Filing bankruptcy will stop your garnishment because as soon as the bankruptcy case is filed, the federal automatic stay takes effect, which prevents creditors from pursuing any collection activities, including wage garnishments, creditor phone calls, home foreclosures, apartment evictions, lawsuits, bank levies, and other collection activities.
Question: My house is being foreclosed on next week. Will filing bankruptcy in Utah help me stop the foreclosure?
Answer: No and Yes. The Utah bankruptcy court does not want to see individuals file for bankruptcy protection simply to delay, defraud, or hinder a creditor. If you cannot afford your house and have not made a house payment, you may consider filing Chapter 7 bankruptcy so that if or when the house is foreclosed on, you can avoid being personally liable on the debt. If you can afford the house now but had fallen behind on payments due to illness or unemployment, you may consider filing Chapter 13 bankruptcy and put the missed payments or arrearages on a repayment plan over a 3 to 5 year period.
Question: If I owe child support and the Utah Office of Recovery Services (ORS) is garnishing my wages for back support, will filing bankruptcy help?
Answer: It can. Child support is classified as a priority unsecured debt, like student loans and recent IRS and Utah taxes. A Chapter 7 bankruptcy cannot remove the liability since the child support is non-dischargeable, but a Chapter 13 bankruptcy filing will allow you to pay any missed child support payment or arrearage over a period of 3 to 5 years. Similarly, other priority unsecured debts can similarly be paid over a 3 to 5 year period.
Question: Does it take long to file a Chapter 7 quickly?
Answer: We can file a Chapter 7 bankruptcy within 24 hours, if you can get us the financial information we need to provide to the court, if you can take the on-line credit counseling class, and if you can pay our retainer. After filing, you will have a 341 creditor hearing in around 30 days and the case will likely discharge 60 days after the 341 hearing. See also Chapter 13 bankruptcy.
Question: How much does it cost to file Chapter 7 bankruptcy in Utah?
Answer: Every case is different and so we would want to evaluate your specific case. We offer bankruptcy case evaluations with an attorney (unlike many bankruptcy firms that have you meet with a paralegal). Our attorney team has collectively filed over 4,000 cases over the past 10 years in part because our fees are competitive and because we have received many referrals. The Utah Chapter 7 bankruptcy filing fee is $306. Our attorney fees are negotiable.
Let us Help You with Your Bankruptcy
If you are considering filing bankruptcy and have additional questions, call us and schedule a free bankruptcy consultation at Pearson, Butler & Carson, PLLC. Feel free to call us today at (801) 495-4104. Also see our Salt Lake City bankruptcy attorney and Layton bankruptcy attorneys blogs. We also have Google Reviews at South Jordan bankruptcy, Layton bankruptcy attorney, and Salt Lake City bankruptcy attorney.
We are a debt relief company under the bankruptcy code. We help people file for bankruptcy.
Bankruptcy Info & FAQ
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Chapter 11 Bankruptcy