Archive for December, 2014

Knowledge is Power – Utah New Year Resolution: Get Informed about Your Options

If you, like most Utahns  are about your financial predicament, resolve to get help in finding a solution.   Where You Now Stand You’re scared and not feeling very hopeful. Your financial problems are overwhelming you. They have taken over your life, worrying you constantly. You may be feeling mad at yourself, feeling guilty for having messed up, frustrated, angry and at times just sick and tired of it all. You have probably been trying to improve your situation for many months, more likely for years. It’s impacted your personal relationships. The anxiety is affecting your health.  It’s battering your self-esteem.…

How Chapter 13 Can Help with Unpaid Property Tax on a Home

Chapter 13 stops both mortgage and property tax foreclosures giving one up to 5 years to catch up on the Utah property taxes.   Unpaid Property Tax Means You’re in Breach of Your Mortgage Contract Just about every mortgage agreement obligates you to keep current on your home’s property taxes. Most even consider falling behind on property taxes to be a separate breach of the mortgage agreement and separate grounds for the mortgage lender to foreclose on your home. The reason your mortgage lender takes the property taxes so seriously is that its mortgage is behind property taxes in priority on…

Chapter 13 Can Help with Individual Income Tax Debts?

Income taxes and  Recorded tax liens in Utah. Examples of how Chapter 13 works with each.   Personal Income Taxes that CAN’T Be “Discharged” An income tax debt can be discharged—legally written off in bankruptcy—if it meets certain conditions. The two main conditions are time-based—1) more than 3 years must have passed since the tax return for the tax was DUE (including any extensions), AND 2) more than 2 years must have passed since the tax return was FILED with the IRS/state. (There are a couple other conditions, but they seldom apply.) If these conditions are met and you file…

Examples of How Chapter 13 Can Help If You Owe Individual Income Taxes

Some income taxes can be discharged, some can’t. Some have recorded tax liens. Here we show Chapter 13 works with each kind.   Personal Income Taxes that CAN’T Be “Discharged” An income tax debt can be discharged—legally written off in bankruptcy—if it meets certain conditions. The two main conditions are time-based—1) more than 3 years must have passed since the tax return for the tax was DUE (including any extensions), AND 2) more than 2 years must have passed since the tax return was FILED with the IRS/Utah State Tax Commission. (There are a couple other conditions, but they seldom…

How Can Chapter 13 Can Help After a Divorce in Northern Utah?

Chapter 13 can do much more than Chapter 7 If you are behind on your child and spousal support or if you owe other divorce obligations.   Stopping Collection of Support Arrearage If you are behind on your child or spousal support payments, a Chapter 7 “straight bankruptcy” will not help you, at least not directly. The filing of a Chapter 7 case would stop the collection efforts of just about all your other creditors but not that of your ex-spouse or the local support enforcement agency. If your wages were being garnished for back support, those garnishments will continue.…

What are Examples of Some Benefits of Chapter 13 for Utah Debtors?

We end this series on Chapter 13 with some illustrations of how it works and why it can be so great.   Curing Home Arrearage If you are behind on your mortgage payments, especially enough so that you are being threatened with foreclosure, catching up can be almost impossible. If you file a Chapter 7 case, usually you’ll get at most a year or so to catch up. If you are many thousands of dollars behind, that’s not nearly enough time. Here’s how it works instead under Chapter 13:

Harry and Sally fell 10 payments behind on their $1,750 mortgage while …

How long Does It Take to Discharge Your Debts under Chapter 13 in Utah?

Yes, you must wait until the end of your 3 to 5 year plan to discharge your debts, resulting in some risks.   During the last month of blog posts we’ve answer some key questions about Chapter 13. In doing so, we have showcased many of Chapter 13’s special benefits in dealing with your debts, especially those debts that Chapter 7 “straight bankruptcy” does not handle so well. But we’ve also made clear that one of the main detriments of using Chapter 13 is that a successful one takes at least 3 years and as long as 5 years to complete.…

In Northern Utah Chapter 13 vs. Chapter 7: what’s left of the “super-discharge.”

Chapter 13 can deal much better with many kinds of debts, but it can only discharge one kind that Chapter 7 can’t.   What is “Discharge”? At the successful completion of both a Chapter 7 “straight bankruptcy” and a Chapter 13 “adjustment of debts,” you receive a discharge of your debts. That means that the creditors are legally forbidden to make any further direct or indirect attempts to collect those debts. That is, you get a discharge of most, but often not all, of your debts. Certain kinds of debts are not discharged. Among these are recent income taxes, back child…

Utah Failing Marriages and Bankruptcy: Should You File a Chapter 13?

A Chapter 13 can help you even if things get complicated by a divorce in the middle of your case but used with financial coaching it may also help save your marriage.   As the last few blog posts have shown, the Chapter 13 “adjustment of debts” procedure has many powerful tools that are not available in a Chapter 7 “straight bankruptcy.” But it takes 3 to 5 years to finish. And it involves a certain amount of oversight of your income and expenses by a Chapter 13 trustee during that period. These downsides are more than worthwhile in the right…

Reasons for filing Chapter 13 in Northern Utah

Sometimes the advantage of Chapter 13 outweigh the extra cost.      Sometimes You Pay Nothing to Certain Creditors in a Chapter 13 Case Under all Chapter 13 cases you will pay something to at least some of your creditors, and under most of them you will pay something to all or most of your creditors. But not always. First, in some Chapter 13 cases you do not have to pay anything to those creditors which would have received nothing in a Chapter 7 case. In situations in which you are paying all you can afford to certain special creditors, you would…