Utah Bankruptcy Lawyers
Learn about your rights and options with the help of a Utah bankruptcy attorney.
The laws in Utah provide many options for anyone wanting to take serious action to regain control of their debt. The Utah bankruptcy laws offer several options designed to help you clear debt from many different sources while protecting the things that are most important to you.
There are bankruptcy options designed to protect your home and options designed to quickly clear credit card debt. In many cases, you won't have to choose among goals, as bankruptcy allows you to address several types of debt with one filing.
If you want to learn more about how bankruptcy works and if filing will be able to resolve your debt and the problems that go with it, speak with a local bankruptcy lawyer. Bankruptcy lawyers in Utah may look at your needs, the state laws and walk you through all of your options.
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Chapter 7 Bankruptcy Exemptions in Utah
Utah allows two main options for personal bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy is the most common type of bankruptcy. It is also the fastest. The Chapter 7 process was created to clear debt when the filer simply doesn't have the income needed to pay down debts. So if your bills are bigger than your paycheck this may be a good option for you.
In Utah, you may use Chapter 7 to address debts related to credit cards, medical bills, personal loans, utility bills and more.
The process is simple: A means test is used to determine who is eligible to file. This test is meant to keep people from abusing the system, and looks at your income relative to the median income in Utah.
If you qualify, all of the eligible debts you include in your filing should be completely cleared, typically in a few months. You won't have to worry about making regular payments or a lump sum settlement.
Chapter 7 also provides protection for valuable property. In exchange for clearing your debts, in rare instances creditors may try to force a sale of valuable property. However, the Utah state bankruptcy laws outline what are known as exemptions. This section of the laws lay out the types and amounts of property that are fully protected - that are exempt - from any type of forced sale.
In Utah, Chapter 7 exemptions include:
- Primary residence worth $20,000 ($40,000 for family)
- A vehicle worth up to $2,500
- Up to $500 in household furnishings
- Washer, dryer, refrigerator, stove, microwave oven, clothing, beds and all health aids.
- $3,500 worth of implements, books and trade tools
If you need more protection for your property - if you own several cars or homes - then Chapter 13 bankruptcy may be a better option for you.
Chapter 13 bankruptcy takes longer and requires that filers make regular payments to a trustee. However, Chapter 13 is one of the few options for securely clearing debt related to a home mortgage and car loans.
Plus, even though Chapter 13 takes longer, the Automatic Stay still protects filers for the duration of the case from collection efforts, including foreclosure and wage garnishment.
A Utah bankruptcy lawyer can help you understand the bankruptcy process and determine whether or Chapter 13 bankruptcy might work for you.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.