Filing Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the only type of bankruptcy that liquidates or gets rid of all of your debts without requiring you to pay anything back. In order to file under Chapter 7, debtors need to meet certain income requirements depending on their family size. In most cases, debtors are able to keep all of their property. Careful planning with your attorney will ensure that you retain most, if not all, your personal property.

Consulting With a Chapter 7 Bankruptcy Attorney

Chapter 7 bankruptcy is the most common bankruptcy filed. Our bankruptcy attorney will prepare a bankruptcy petition for the bankruptcy court to eliminate your debts. With Chapter 7, debtors will be able to keep most of their personal property. Personal loans, credit cards, medical bills, and other unpaid expenses may be discharged through a Chapter 7 bankruptcy filing.

What Happens After I File Chapter 7 Bankruptcy?

Immediately after you file bankruptcy papers, the federal “automatic stay” will take effect. The automatic stay will provide the debtor protection from all collection activities, including car repossessions, wage garnishment, and home foreclosure sales.

Preparing to File Chapter 7 Bankruptcy in Utah

When you file Chapter 7 bankruptcy, debtors need to make an inventory of personal property. We will help you determine which property is exempt (debtors can keep) and non-exempt (debtors will surrender).

How Long Will a Bankruptcy Case Take?

Once you file a petition for Chapter 7 bankruptcy, it normally takes about four to six months for your case to be completed. There are several situations that can delay a bankruptcy case including:

    • Trustee needs more information. Creditors can ask for more information of documentation, which can delay a case until you acquire the documentation.
    • Delays in personal financial management courses. You are required to attend financial management courses to help prevent you from future bankruptcies and financial struggles. If you delay attending financial management courses, it will delay your debt discharge.
    • Creditors challenge dischargeability of debt. Creditors can challenge your bankruptcy case if they feel your debt should be wiped out. The court will hold a hearing to discuss the matter, which includes witness testimonies and review of documents.
    • Student loan debt discharge. You need to prove to the court that your student loan debt is causing undue hardship if you want to discharge it.
Filing Chapter 11 Bankruptcy in Utah

Chapter 11 bankruptcy is an effective tool for viable businesses and high net worth individuals to restructure their debt in the face of severe financial strife. Unlike other chapters of the bankruptcy code, the debtor is in the driver’s seat of the proposed restructuring plan. Although creditors will need to approve of any deal, it is often the best option for debtors to get out of debt.

Not many law firms have experience with Chapter 11 bankruptcy filings. Fortunately, We have years of experience handling a variety of bankruptcy cases, including Chapter 11 bankruptcy. We can assist businesses, sole proprietors, and others with filing for federal bankruptcy protection under Chapter 11 or Chapter 7 bankruptcy when they are unable to meet creditor obligations. Chapter 11 allows the business debtors to act as debtors in possession where they are able to retain control of business operations under judicial oversight.

Court Filing Requirements

For a business to properly file Chapter 11, they must provide the following documents:

  • Copy of recent balance sheet
  • Statement of operations
  • Cash-flow statements
  • Copy of recent federal income tax return
  • Reorganizing Personal and Business Assets with Chapter 11 Bankruptcy

When you file for Chapter 11 bankruptcy, the debtors personal and business assets are recognized. The time frame of a Chapter 11 plan ranges from a few months to several years based on the complexity of your case and debt amounts. Chapter 11 bankruptcy normally allows proposals from different parties and creditors to vote on the plan.

Filing Chapter 13 Bankruptcy

Are you dealing with serious delinquencies and debt? We are here to help you regain control over your finances. Chapter 13 bankruptcy allows many individuals to find financial relief through a repayment bankruptcy plan.

The primary difference between a Chapter 13 bankruptcy and a Chapter 7 is that under Chapter 13, debtors pay some of their debt back to their creditors over a 3-5 year period depending on their circumstances. A person normally files under Chapter 13 to save their home or because they do not qualify to file under Chapter 7.

Do I Need a Lawyer to File Chapter 13 Bankruptcy?

Some people try filing for Chapter 13 Bankruptcy without the help of an attorney, but they almost always end up in a worse situation than they were in beforehand. Even more stress and confusion is the last thing someone needs during an already overwhelming and painful period of their life. Don’t make your burden worse than it has to be. Take advantage of the guidance and experience of our team of Chapter 13 Bankruptcy attorneys and get your life back on track.

When you work with us, we will guide you through the entire process of filing for Chapter 13 bankruptcy. We will begin by filing for bankruptcy protection, which stops all collection activities, including wage garnishments, home foreclosure sales, vehicle repossession, harassing collection calls, and more.

What Else do I Need to Know About Filing for Chapter 13 Bankruptcy?

Under Chapter 13 Bankruptcy Filings, debtors will repay their creditors all or part of their debts, based on what the debtor can afford. Normally the amount they can afford is based on their disposable income after making monthly expenditures. Once a bankruptcy plan is completed, all unsecured debts are discharged.

Some bankruptcy Chapter 13 cases will allow for a vehicle “cram down”, which helps to reduce the principal amount the debtor owes on a vehicle. The debtor will only repay the auto loan based on the current market value of the vehicle. Chapter 13 also allows homeowners to file a “Chapter 13 lien strip”, which will eliminate the second mortgage.

Chapter 13 is more commonly used for homeowners than Chapter 7 bankruptcy. If you are upside-down in your home and you have a second mortgage, a Chapter 13 lien strip is a great way to find financial relief. Chapter 13 does impact your credit, but not as significantly as you are paying back part of the debt.