Bankruptcy Chapter 7 Utah

Chapter 7 Bankruptcy Utah Cost

You can wipe out your debts and get a “fresh start” if you file a Chapter 7 bankruptcy.   Your property will be divided into exempt and non-exempt property. You can keep the exempt property but your non-exempt property will be collected by a trustee and sold.

The trustee will then distribute the net proceeds of the liquidation to your creditors.  After the trustee takes a commission, the trustee will pay you, the debtor, any amount exempted. Essentially, when you file for a Chapter 7 bankruptcy you are exchanging non-exempt property for a discharge of your debt.

Not all debts can be discharged

Debts that cannot be discharged with a Chapter 7 Bankruptcy include:

  • Alimony
  • Child support
  • Certain taxes
  • Fraudulent taxes
  • Student loans
  • Certain items charge

You have a greater chance of getting your debts completely eliminated if you have a lot of credit card debt, other unsecured bills and insignificant assets.  The debts that are eligible for discharge include:

  • Medical bills
  • Loans
  • Credit cards
  • Certain income taxes that are more than 3 years old
  • Debts secured by property or vehicles

Chapter 7 Bankruptcy Attorney Utah

You need to reaffirm certain secured debts such as your house or car in order for you to keep them.  All you need to do is sign a “Reaffirmation Agreement”. However, once you reaffirm the debt you owe for your house or car or furniture, you will not be able to wipe out that debt for the next eight years. In fact, you will still be obligated to pay that debt just as you were obligated to before you filed for bankruptcy.

In a scenario where you were three or four months behind in paying for your house or car or furniture, you will need to bring it current in order to reaffirm the debt.  In other words, you will have to make all the payments that are due in order to reaffirm the debt. You can also choose to keep your house and car but let your jewelry and furniture go back to the respective creditors.

Filing Bankruptcy Chapter 7 in Utah

Not all people can and should file for a Chapter 7 Bankruptcy and that is why you need the advice of a qualified bankruptcy lawyer.  Generally, you should file if you are experiencing the following:

  • You have lost your job
  • You found yourself in a situation where you have to borrow from payday loan companies
  • You have fallen behind on some of your credit card payments
  • When you have to pay off some credit cards using other credit cards
  • You have exceeded your credit card limit on some or all your credit cards
  • You can no longer afford the increased minimum monthly payment for your credit card
  • You have less than a 600 credit score
  • You have no expensive property that the court can take away
  • You have more than $10,000 in debt and are unable to repay

You should consider all the alternatives available for you before you file for bankruptcy.  Consult an experienced bankruptcy attorney for advice about whether you should file a Chapter 7 bankruptcy or any other type of bankruptcy.