Archive for April, 2015

Making Sense of Utah Bankruptcy: Strip a Second (or Third) Mortgage Off Your Home

If you qualify in Utah, stripping a junior mortgage from the title to your home could make it worth saving while making it possible to do so.   In this “Making Sense” series, we’re helping you understand bankruptcy by explaining each of its important concepts through a single sentence. But this concept of mortgage stripping will take two sentences, one to show the huge benefit of stripping your second (or third) mortgage, and the second to explain how to qualify for this mortgage strip. The two sentences:

If you qualify for removing (stripping) your second or third mortgage from your home’s …

Making Sense of Utah Bankruptcy: Catch up on your Home Mortgage Arrearage

A Chapter 13 “adjustment of debts” gives you many tools to save your Utah home, starting with giving lots of time to catch up on your mortgage.   In this “Making Sense” series, we’re helping you understand bankruptcy by explaining each important concept through a single explanatory sentence. Today’s sentence: Filing a Chapter 13 case stops or prevents a foreclosure and then gives you as much as 5 years to cure a mortgage arrearage as long as you follow the rules. The word and phrases in bold are each explained in the following sections. The Chapter 13 “Adjustment of Debts”

Making Sense of Utah Bankruptcy: Curing Child and Spousal Support Arrearage

Unlike Chapter 7 “straight bankruptcy,” a Utah Chapter 13 can legally prevent your ex-spouse/support enforcement from chasing you and your Utah assets.   In this “Making Sense” series, we’re helping you understand bankruptcy by explaining its main concepts through single sentences. Today’s sentence: Only Chapter 13 can stop your ex-spouse or support enforcement agency from very aggressively pursuing you, and can give you a reasonable time to cure your support arrearage, if you follow the rules. The Special “Automatic Stay” As Applied to Support The “automatic stay” is the part of federal bankruptcy law that strictly prevents creditors from pursuing…

Making Sense of Utah Bankruptcy: The Vehicle Loan “Cramdown”

A Utah Chapter 13 may allow you to significantly reduce your monthly vehicle payment and to pay off the debt for thousands of dollars less.   In this “Making Sense” series, we’re helping you understand bankruptcy by explaining its main concepts within single sentences. Today’s sentence: A cramdown can be done with negative equity vehicle loans more than 910 days old, with amount of your monthly and total savings depending on your circumstances. “Cramdown” Cramdown makes sense if you start with the reality that Chapter 13—the 3-to-5-year partial payment plan—allows you to treat your secured debts (those with collateral) and…

Making Sense of Utah Bankruptcy: The Chapter 13 Payment Plan

Chapter 13 is all about what you can and can’t do with your creditors in your Utah bankruptcy court-approved plan.   With our last blog post we started a series to help you understand bankruptcy better, by having us explain the legal terms in a sentence you might hear, so that it all starts to make sense. Here’s today’s sentence: A Chapter 13 case usually requires a 3-to-5-year payment plan, in which you pay your secured, priority, and general unsecured debts according to a detailed set of somewhat flexible rules. Chapter 13 The point of Chapter 7…

Utah Bankruptcy…Making Sense: The Words You Need to Understand

Going through bankruptcy in Utah is much more comfortable if its language is decoded for you. Here’s a practical way to do this.   Instead of giving you a list of legal terms and their definitions, we think it makes a lot more sense if we do it by sentence: we’ll give you a sentence that you might hear your attorney or a creditor or a Utah bankruptcy trustee say, and we’ll tell you what the terms in the sentence mean, and then what the whole sentence means. Today we start with this sentence: In a Chapter 7 case, most of…

Tax Day 2015 in Utah: The 10 Most Important Ways Bankruptcy Helps Deal with Your Tax Debt

If you owe back taxes in Utah, bankruptcy can help, in many unexpected and powerful ways.   We finish this blog series about taxes with this summary of the most important benefits of filing bankruptcy if you owe taxes: 1. Bankruptcy CAN legally and permanently write off (discharge) income taxes. Income taxes can be discharged, just like a credit card or medical bill—you just need to meet some special conditions that only apply to taxes. Most of the conditions just require waiting long enough. Although there are some other potential conditions that seldom apply, mostly you just need to wait two…

Utah Bankruptcy . . . Paying Both Income and Withholding Taxes for a Business Owner through Chapter 13

If you owe too much in taxes in Utah, a Chapter 13 case can protect your small business while you write off some and pay some of the taxes.

  Two weeks ago we explained how a Chapter 13 three-to-five-year “adjustment of debts” case can help a business owner who owes both income taxes and employee withholding taxes deal with both kinds of taxes, while continuing to run the business. But better than explaining that, today we’ll show how it actually works, through the following example. Our Hypothetical Taxpayer Tiffany owns a lamp shop, and has for 12 years. She owns…

Utah Bankruptcy . . . The Writing Off of Income Taxes with a Simple Chapter 7 Case

Discharging (legally writing off) federal and Utah income taxes can be quite simple in bankruptcy.   Our last two blog posts showed how a Chapter 13 three-to-five-year “adjustment of debts” case can help a person who owes income taxes that do NOT qualify for being discharged in a Chapter 7 “straight bankruptcy” case. Chapter 13 can be a great way to pay back taxes that you have to pay (usually relatively recent taxes), giving you very flexible terms, usually avoiding additional interest and tax penalties, and protecting you from the IRS and the state tax agency throughout the payment process.…

Utah Bankruptcy . . . a Chapter 13 Plan for Paying Both Income and Property Taxes

Here’s an illustration how you could save your Utah  home if you were behind on your mortgage and property taxes, as well as federal and/or Utah income taxes.   In our last blog post (a couple days ago) we showed an example of how a Chapter 13 “adjustment of debts” can protect someone who was behind on income taxes, particularly income taxes that would not qualify for being discharged (legally written off) in a Chapter 7 “straight bankruptcy” case. We showed there how Chapter 13 usually allows you to catch up on other important debts—some child support arrearages there—often ahead…