Chapter 13 Bankruptcy in Utah
Chapter 13 bankruptcy is most beneficial to individuals facing a home foreclosure or vehicle repossession. Individuals who file Chapter 13 rather than Chapter 7 bankruptcy want to repay the debt they currently owe but need the protection of bankruptcy in order to do so. In a Chapter 13 bankruptcy secured creditors are paid 100% of what they are owed, plus interest. Unsecured priority creditors (tax debt, child support, alimony, etc.) are paid 100% of what they are owed with no interest. General unsecured creditors are typically paid only a fraction of what they are owed. The Utah bankruptcy attorneys at LeBaron & Jensen, P.C. are available to help you file Chapter 13 and start repaying your debt with a payment schedule. You may want to consider filing Chapter 13 if any of the following financial situations apply to you:
- You wish to repay your debts but you need extra time or protection from debt collectors in order to do so.
- You are behind on a mortgage or car loan and need extra time to make up payments and continue making regularly scheduled payments during bankruptcy.
- You want to leave the option of filing Chapter 7 in the future.
- You are a farmer who does not qualify for Chapter 12 bankruptcy.
- You have assets that will not be exempt in Chapter 7 bankruptcy.
- You are over the median income on the means test.
Requirements for Filing Chapter 13 Bankruptcy
- You are not a business entity. Only individuals can file Chapter 13 bankruptcy. A business entity may qualify for Chapter 11 bankruptcy.
- There is no previous bankruptcy preventing you from filing a Chapter 13 bankruptcy.
- You have not filed and been voluntarily dismissed another bankruptcy case within the previous 180 days.
- You have completed credit counseling within 180 days prior to filing.
- Your debts are less than the Chapter 13 cap as set by the United States Department of Justice.
- You have filed federal and state income tax returns
- The payment plan proposed repays all debts including unsecured debts, secured debts, and other secured debts
- You are able to repay a certain amount to unsecured creditors
- Your income is sufficient to pay the remaining debt payments according to the payment plan
Call LeBaron & Jensen, P.C. to file Chapter 13 bankruptcy in Utah at (801) 773-9488 in Layton.
Bankruptcy laws are complex and in many cases, these laws allow for exemption of certain assets from being liquidated. The bankruptcy attorneys at LeBaron & Jensen, P.C. can help you protect qualifying assets throughout your bankruptcy.
The following assets are eligible for exemption in Utah bankruptcy:
- Your home (Utah limit $30,000.00 per debtor)
- Your car (Utah limit $3,000.00 per debtor)
- Household goods (limited)
- Retirement assets including 401k, profit sharing, stock bonus plans, IRA’s, deferred compensation plans, etc. (100% protected)
Call the bankruptcy attorneys at LeBaron & Jensen, P.C. to protect your assets at (801) 773-9488 in Layton.
When you file bankruptcy, most of your debts will be discharged, meaning you are released from all personal liability for the debts. This means that the creditor may no longer contact you to collect debt because you are no longer obligated to pay. Some debts, however, will not qualify to be discharged. Usually non-dischargeable debts involve money owed to the government or money used for marital or child obligations.
Non-Dischargeable Debts Include:
- Income Tax
- Student Loans
- Child Support and Alimony
- Marital Debts
- Intentional Torts
- Debt incurred as the result of a malicious or intentional act
- Operating Vehicle while Intoxicated
- Recent Credit Purchases/Cash Advances
- These include luxury goods or services over $600 to a single creditor within 90 days of bankruptcy
- Cash advances over $750 within 70 days of filing bankruptcy
- Fines & Citations
- Any fines or citations resulting from violating the law, such as DUI fines, tickets, etc.
- Debt Incurred by Fraud
- Debt Arising Out of the Intentional Destruction of Property
During your initial consultation, our bankruptcy attorneys will help you understand which of your debts are dischargeable and which are not. Call LeBaron & Jensen, P.C. to discuss your non-discharging debt today at (801) 773-9488 in Layton.
Credit counseling is a requirement that must be fulfilled within the 180 days prior to filing your bankruptcy. The credit counseling course must be taken from an approved credit counseling agency either in person, over the phone, or online. The certificate of completion is required to be filed with the bankruptcy court when you bankruptcy case is initially filed.
What you can expect from credit counseling:
- Evaluation of current personal financial situation
- Discussion of alternatives to bankruptcy
- Creating a personal budget plan
- Your session will last approximately 60-90 minutes
- This can take place in person, over the phone, or online
The fee for credit counseling is generally around $50 per couple or $25 per person, although it may vary depending on the location and credit counseling agency. This fee can be waived by the agency if you are unable to pay, although you should receive a waiver prior to the counseling session. After the counseling session you should receive a certificate of completion to file with the bankruptcy court. Call LeBaron & Jensen, P.C. for credit counseling agencies in Utah at (801) 773-9488 in Layton.
Contact LeBaron & Jensen, P.C. today to learn about to rebuild your credit after bankruptcy at (801) 773-9488 in Layton.
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