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Bankruptcy Services
Chapter 7 & Chapter 13
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Utah Chapter 13 Bankruptcy Attorney                                                   Free Consultation

Chapter 13 Bankruptcy Reorganization

Chapter 13 bankruptcy is otherwise known as "wage-earner" or a "debt reorganization" bankruptcy. In a Chapter 13, all property of the debtor may be kept. The debtor is required to make monthly payments to a Trustee for a period of three to five years and to pay to the Trustee any tax refunds received totalling over $1000 for a three year period.

After the debtor has met these obligations, the debtor receives the discharge of his or her debts.

Reasons to File a Chapter 13

Bankruptcy laws are highly complex. However, usually debtors file Chapter 13 cases for one of the following reasons:

First, a debtor may have already filed for bankruptcy in a Chapter 7 or in another Chapter 13 case in which the debtor received a discharge of his or her debts. This precludes a person from receiving another discharge in a Chapter 7 case for a certain period of time.

Second, a debtor and his or her spouse may jointly earn more than the applicable Utah median income for their family size. In this scenario, a debtor is generally prohibited from filing a Chapter 7 case. This limitation is called the "means test."  

Third, a debtor may be irreparably behind on his or her home mortgage payments, facing an impending foreclosure. A Chapter 13 enables a debtor to keep his or her home, making payments for the amount in default through the Chapter 13 payment plan and at the same time making ongoing regular house payments directly to the mortgage lender. To keep a home or other secured debt asset in a Chapter 7 bankruptcy case, however, a debtor generally must be completely current on his or her loan for the property when the case is filed and must also continue making payments on time until the original loan obligation for the home or vehicle is completely fulfilled.

Fourth, a debtor might have too much equity in his or her home to keep the home if the debtor were to file for Chapter 7 relief.

In all of these scenarios, and in a few others, it may make sense to file a Chapter 13 bankruptcy case, rather than a Chapter 7 bankruptcy case, or to not file a bankruptcy case at all.

Meet with an Experienced and Licensed Utah Bankruptcy Lawyer

Bankruptcy is highly complex. If you have any questions or would like to schedule a free one-on-one consultation regarding your options, contact us to schedule a free appointment: (801) 850-8125. Help is just a phone call away.

Benefits of Reorganizing Your Debts

As long as you fulfill your obligations under your confirmed Chapter 13 plan and do not take on any new debts after your case is filed, your case filing will permanently stop garnishments, repossessions, lawsuits, judgments, foreclosures, and creditor harassment. At the same time, your home, your car, your income, your furniture, and your other property will be protected from your creditors.

Call Our Offices Today for Your Free Consultation: (801) 850-8125

Salt Lake County South Location (Main Office):
The Law Offices of Laura Ferrin
A Professional Law Corporation
9130 S. State Street, Suite 120
Salt Lake City, Utah 84070-2645

Salt Lake County North Location:
The Law Offices of Laura Ferrin
A Professional Law Corporation
299 S. Main Street, Suite 1300
Salt Lake City, Utah 84111-2241

Utah County Location:
The Law Offices of Laura Ferrin
A Professional Law Corporation
2975 Executive Parkway, Suite 195
Lehi, Utah 84043-4717

We are a Utah debt relief agency.  We help people file for bankruptcy protection under federal bankruptcy laws.

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