Utah Chapter 7 & 13 Bankruptcy Attorney

Looking for a bankruptcy attorney? Chapter 7 is the fastest and most common type of filing, known as straight or liquidation bankruptcy. It is filed to wipe out most or all of your unsecured debts (e.g. credit card debts, medical bills, payday loans, etc.) to get a fresh start. In most cases you will get a discharge in approximately 90 days from start to finish assuming your case is filed and executed by an experienced and knowledgeable bankruptcy attorney like Ryan E. Simpson.

Bankruptcy Attorney

Utah Chapter 7 Bankruptcy

In order to qualify for Chapter 7, you must pass the Means Test (unless over 50% of your debt is business related). The Means Test was designed to limit the use of Chapter 7 bankruptcy to those who truly can’t pay their debts. The test is a series of financial questions used to determine if the consumer qualifies for Chapter 7 bankruptcy. If your current monthly income for your household size is less than Utah median income, you will be eligible to file Chapter 7.

For cases filed on or after May 1, 2013, the California median income for 1 person = $48,415, 2 = $63.060, 3 = $67,401, ad 4 = $75,656, etc. If your household income is higher than the state median (i.e. you’ve failed the means test), a calculation of your monthly income and allowable expenses is used to determine whether you qualify for Chapter 7. The higher your disposable monthly income (DMI), the more likely you cannot file Chapter 7. In that case you would have to file Chapter 13 instead, and repay some or all of your debt over a 3 to 5 year period. Learn more at http://markalexander.over-blog.com

Filing a Chapter 7

When filing Chapter 7, you can still keep your home, car, as well as other assets, provided the assets are covered under the California bankruptcy exemptions. Both individuals and businesses can file Chapter 7. Contact an experienced and knowledgeable bankruptcy attorney today for a free consultation with a Chapter 7 Bankruptcy lawyer to determine whether you qualify for Chapter 7 and if so, whether it’s the right solution for your particular situation.

Chapter 13 bankruptcy

Chapter 13 is commonly known as debt repayment plan, which you will pay some or in certain cases all of your debts over three to five year period. The repayment of unsecured debts can range from pennies on the dollar to a full amount depending on your situation. It is also usually filed if you do not qualify for Chapter 7 or when you are behind on your mortgage or auto loan payments. By filing Chapter 13, it allows you to catch up on your arrears and bring your payments current to avoid a foreclosure on your home or repossession of your vehicle. If you have more than one mortgage on your home and the balance of your first mortgage is higher than the value of your home, you may be able to wipe out the second mortgage or home equity loan by filing what is called “a motion to strip off junior lien.”

Once you complete your plan payments over the 3-5 year period, you will wipe out your debt and get a fresh start just like you would in a Chapter 7 bankruptcy.

Hire A Utah Bankruptcy Attorney

In order to qualify for Chapter 13, you must be filing as an individual and not as a business (unless you’re filing as the business owner), and your debts must not exceed the secured and unsecured debts limit. Effective April 1, 2013, the limit for secured debt and unsecured debt is $1,149,525 and $383,175 respectively. If your debts exceed either of these limits, you do not qualify for Chapter 13. In that case, you’d need to file Chapter 11 which the Law Office of John T Nguyen does not handle at this moment. If your Chapter 13 plan proposes to wipe out junior mortgage or home equity loan through the lien stripping process, then that loan will be considered unsecured debt for purposes of determining your limit on unsecured debts. This is a complicated area of law and must be done by a knowledgeable attorney. Learn more at http://bnkut.blogspot.com

Because Chapter 13 is a repayment plan, you must have a regular source of income that is sufficient to make your monthly payment plan. The regular income can be from various sources, such as employment, self-employment, unemployment, retirement, etc. To find out whether you qualify for Chapter 13 and whether that’s the right solution

You may also like