Chapter 13 Bankruptcy


When you are filing a bankruptcy case in Utah, two chapters will govern the outcome of the case. They are Chapter 7 and Chapter 13 bankruptcy. The latter varies significantly with the former in that it does not involve liquidation. On the contrary, as the debtor you are allowed to retain your property, regardless of whether it is considered exempt or not, so long as the plan follows the requirements of the law. It is important to understand what Chapter 13 bankruptcy in Utah entails so that you can know candidly what to expect.

Chapter 13 bankruptcy attorney

Here are three characteristics of this bankruptcy chapter:

Bankruptcy Chapter 13 in Utah takes longer as compared to Chapter 7. It takes about 3 to 5 years to complete. It takes a longer period owing to the monthly installments that you must make to the Chapter 13 trustee. However, whether you will take three or more years depends solely on your income. For instance, if you earn a below average income, you will need more time to settle your debt.

Involves a payment plan

Chapter 13 tries to organize your debts and makes sure that various creditors are paid over time. The debt settlement experts will come up with the figure of your disposable income and the sum is then used to calculate the payments you will be making to the trustee every month.

They use various means to establish the disposable income. However, based on the mean test results, unsecured lenders, including credit card firms and hospital bills, are not covered in this plan. All the same, other critical claims, such as child support, domestic support responsibilities and tax debt, are included in the Chapter 13 payment plan. It is important to get a chapter 13-bankruptcy attorney in Utah. They will assist you in understanding your payment plan.

It has requirements

Bankruptcy chapter 13 Utah

For the courts of law in Utah to approve your Chapter 13 bankruptcy application, it must meet certain conditions. To begin with, you must represent all your finances as they are, without attempting to instigate a fraud in the courtroom. Secondly, it should satisfy the creditors’ best interests. That is, you should pay your lenders the same amount they would get if you followed a Chapter 7 bankruptcy plan. Unsecured creditors do not receive anything in Chapter 7 but in Chapter 13, you are required to give them a particular amount from your disposable income. All the aforementioned requirements makes this procedure more complicated, which is one reason you should find yourself a good chapter 13 bankruptcy lawyer.

Chapter 13 Trustee

This trustee is similar to the one in Chapter 7 and they ensure that the payment plan is implemented well. They review the plan and they can challenge it in court if they notice any anomalies. When the court approves of the plan, the trustee becomes the intermediary between the creditors and the debtor by receiving payments. It is the duty of the trustee to disperse the money to different lenders depending on the provisions of the particular Chapter 13 payment plan.

Chapter 13 Bankruptcy attorney

Chapter 13 is a better option when you are economically restrained. To get a good verdict, make sure to hire a quality chapter 13 bankruptcy attorney to steer the process. Most importantly, be honest.

Benefits of filing for Utah chapter 13 bankruptcy

  • Filing for bankruptcy can get you a discharge for some of your debts.
  • If you are a homeowner in Salt Lake or any other place in Utah, you can still retain the equity in your home.
  • It prevents the creditors from repossessing your properties. It will also require the creditors to return the properties that they had already repossessed.
  • If you are married, you can file for exemption with your spouse and you will have the benefit of exemption.
  • It immediately stops the debt collectors from calling and hounding you.
Craig R. Chlarson - Utah Bankruptcy Attorney

My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.

To schedule an appointment, call (435) 901-3449

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