Archive for May, 2013

Can Bankruptcy Help With My Criminal Debts?

Debts related to alleged criminal behavior generally can‘t be written off in bankruptcy. But bankruptcy can often still help. Bankruptcy does not write off criminal fines or restitution, and does not stop criminal court proceedings. But sometimes you can find yourself dealing with fallout from criminal allegations against you BEYOND the criminal court, and that is where bankruptcy may be able to give you a critical fresh start. Once the criminal case is resolved—even if in your favor—you could face a lawsuit by the alleged victim in civil court. The following example illustrates some of the ways bankruptcy can help…

How Can Chapter 13 Help You With Your Home and Vehicle?

Are you living in Utah and are behind on a mortgage or vehicle loan?  Chapter 13 offers many tools to help you manage your mortgage and vehicle loans. Chapter 7 vs. Chapter 13 in General Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” give you two very different ways of attacking your debts. Grossly oversimplifying, Chapter 7 cleans off your slate of simple debts so that you can have a fresh start within a few months. Chapter 13 shuffles your debts around in a way that you can sensibly deal with your more complicated debts, so that you…

Utah Bankruptcy–Advantages of Chapter 13 in Treatment of Creditors

Would you like to favor certain important creditors over others? Often, Chapter 13 makes this possible. Leveraging the Bankruptcy Laws One of the basic principles of the United States system of bankruptcy is that it does not allow favoring some creditors over the others. That is, not unless that favoring is recognized as justified in the eyes of the law. In a variety of ways, creditors are recognized as legally different. For example, secured creditors have rights to collateral that unsecured creditors don’t. And certain debts can’t be discharged (written-off) in bankruptcy, such as child support, many types of taxes,…

Complications in Chapter 7 Bankruptcy

What if your income is too high, not all your assets are protected, you’re not current on your secured debt payments, and you can’t write off all your debts?   If Your Income is Higher than “Median Income” To qualify to file a Chapter 7 “straight bankruptcy” case, you must pass the “means test.” The easiest way to pass it is if your income is no higher than the “median income” for your state and family size. “Median income” is the amount at which half of the households within an area earns more and the other half of the households earns…

Chapter 7 vs. Chapter 13–Debts Secured by Your Household Goods and Tools of Trade

  Have you used personal possessions or tools of trade as collateral on a loan?  What happens to those items in bankruptcy in Logan, Utah?   Liens Usually Survive Bankruptcy When you agree to give collateral to a creditor to secure a debt, you are giving the creditor a lien on the collateral, as long as the appropriate legal steps are taken to create that lien. That lien gives the creditor a right to the collateral if you don’t pay the loan. The lien—this right to the collateral—generally survives your bankruptcy. This means that although your obligation to pay the…

Chapter 7 vs. Chapter 13—Dealing with Furniture, Appliances, and Electronics

Are you considering bankruptcy in Utah and wonder what happens to the furniture, computer and such that you owe money on? Can they be protected under both Chapters?     When a client comes into our offices worried about collateral on a debt, it’s almost always about their home and/or vehicle. And so the decision about whether to file a Chapter 7 “straight bankruptcy” or instead a Chapter 13 “adjustment of debts” often turns on which is better for their home and/or vehicle. That decision is seldom driven by how other collateral is affected, which is candidly why you see much less…

Chapter 7 vs. Chapter 13—Gaining Power Over Your Home Mortgage

How does bankruptcy in Utah affect your mortgage and your home?  The following lists give you an idea how your mortgage is dealt with under Chapter 7 and under Chapter 13.   Considering the importance of your home, it’s no surprise that the choice between filing a Chapter 7 “straight bankruptcy” and a Chapter 13 “adjustment of debts” often turns on how each would handle your mortgage. Here is how each would do so. Chapter 7
  • If you are current on your home mortgage and want to keep your home, you would just continue making the payments after filing bankruptcy. If

Chapter 7 vs. Chapter 13—Power Over Your Vehicle Lender

Behind on a car loan in Logan?  File under Chapter 7 if you don’t need lots of help keeping your vehicle. File under Chapter 13 if you do.   Many factors come into play in deciding between Chapter 7 and Chapter 13. As far as your vehicle loan is concerned, the above two oversimplified sentences simply reflect that this decision often turns on how far behind you are on your vehicle loan, and on how much you want to keep your vehicle.   Today’s blog is about how Chapter 7 and Chapter 13 each handle debts secured by your vehicle. Blogs…

Chapter 7 vs. Chapter 13 in Utah —It’s a Matter of Time

Put aside all the detailed advantages and disadvantages of these 2 bankruptcy options. The core difference is how each uses time in your favor.   The Biggest Difference — Time We could give you a helpful list of the practical differences between Chapter 7 and 13 bankruptcy, and we do that in our other blogs. But let’s focus today on these two options’ completely different treatment of time, and how, depending on your circumstances, one or the other is better for you. Chapter 7 Bankruptcy — One Point in Time Chapter 7 bases just about everything on that moment in…