Archive for June, 2015

Making Sense of Utah Bankruptcy: Filing Bankruptcy with or without Your Spouse If the Debts are Only in Your Name

You can file bankruptcy in Utah without your spouse, but the question is whether that’s the best choice.   Here’s the sentence that we’re explaining today:

One spouse often owes all or most of the debts 1) in new marriages, or 2) where one spouse operated a business or 3) only one spouse had good credit; deciding whether only the spouse with debts should file bankruptcy requires making sure that the other spouse truly isn’t liable on the debts.

To be clear, a married person can file a bankruptcy case without his or her spouse. Whether or not he…

Making Sense of Utah Bankruptcy: Ex-Spouses and Choosing between Bankruptcy Types

Divorce situations in which the extra time and expense of a Utah  Chapter 13 Bankruptcy case makes sense.  Here’s the sentence that we’re explaining today:

If much of your financial problems come from debts owed your ex-spouse, then when deciding between Chapter 7 “straight bankruptcy” or Chapter 13 “adjustment of debts” the latter can help more if you either 1) are behind on child or spousal support or 2) owe a substantial amount of non-support debt to your ex-spouse. 

Debts Owed to Ex-Spouse To understand how Chapter 7 and 13 bankruptcy deal with debts from a divorce (or legal…

Making Sense of Bankruptcy: Can Filing a Chapter 11 Reorganization Save Your Utah Business?

Chapter 11 is a powerful way to address a business debt crisis, but you must understand the criteria for qualifying.   Here’s the sentence that we’re explaining today:

Chapter 11—unlike Chapter 7 and 13—is primarily designed for businesses, almost any business can file one, it can protect the business from its creditors and reduce its debt burden, but because of its expense and other detriments Chapter 11 is only appropriate in select situations.

Chapter 11 Reorganization Chapter 11 is the business “reorganization” option in the Bankruptcy Code. A business can use it to restructure its finances through a detailed plan…

Making Sense of Bankruptcy in Utah: Which Chapter Would Enable You to Continue Operating Your Business?

If you have a Utah business that you need to continue to operate, choosing the right form of bankruptcy involves risks and opportunities.   Here’s the sentence that we’re explaining today:

Chapter 7 and 13 are very different procedures if you are continuing to run your business, with Chapter 7 being potentially risky if your business or any of its assets is not “exempt”—protected from liquidation—but with Chapter 13 limited in that if your business is in the form of a corporation/LLC it can’t file a bankruptcy separate from you, so that this choice is a delicate one that …

Making Sense of Bankruptcy in Utah: Determining Whether to File a Business or Personal Bankruptcy

With a recently closed or about to close failing Utah business, you often can’t and seldom need to file a bankruptcy for the business itself.

 

Here’s the sentence that we’re explaining today:

If your business is or was a sole proprietorship, it can’t file a bankruptcy separate from you, and even if it can because it’s a corporation or limited liability company it most likely doesn’t need its own bankruptcy case, unless it has assets that you want a bankruptcy trustee to distribute for you.

If your financial problems arise out of an unsuccessful business venture, you …

Making Sense of Bankruptcy : Using the Pickiness of the “Means Test” to Your Advantage in Utah

Because of the very particular way that the means test measures income, the timing of your Utah bankruptcy filing may be crucial.   Here’s the sentence that we’re explaining today:

The “means test” is a rigid method for forcing certain people with the “means” to do so to pay a meaningful amount to their creditors, but because of the test’s 1) focus on income, 2) its very broad definition of income, 3) as determined from a very precise time period, filing bankruptcy just a few days earlier or later can potentially result in passing vs. failing the

Making Sense of Bankruptcy: Avoiding the “Means Test” in a Utah Business Bankruptcy

If you have debts from a closed or about-to-close business in Utah, you may be excused from the “means test” and qualify for Chapter 7.   Here’s the sentence that we’re explaining in today’s blog post:

Avoiding the “means test” can be highly advantageous, and can be done if your debts are not “primarily consumer debts,” this being more likely because some seeming consumer debts may have been incurred for a business purpose and some business debts may be much bigger than you think.

The “Means Test” The “means test” is intended to make those who have the “means”…

Making Sense of Bankruptcy in Utah: Your Role as an “Honest but Unfortunate Debtor”

Bankruptcy in Utah and in the United States as a whole works largely on the honor system.  Actually it’s closer to a “trust, but verify” system. Here’s the sentence that we’re explaining in today’s blog post:

To get the benefits of bankruptcy, be honest and thorough with the bankruptcy process and with your creditors, which may not be as challenging as you might think.

The Benefits of Bankruptcy in Return for Honesty Our blog posts in this website describe the many, many benefits of Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts.” Yes, when you file…

Making Sense of Bankruptcy in Utah: Choosing between Chapter 7 and Chapter 13 to Save Your Home

Behind on your Utah home mortgage? Let’s look at the benefits of a Chapter 13 vs. Chapter 7 plan.   Here’s the sentence that we’re explaining in today’s blog post:

If your home is threatened by foreclosure, Chapter 7 usually buys you relatively little time but maybe enough if you 1) can catch up on the mortgage arrearage after writing off your other debts, 2) can qualify for a mortgage modification, or 3) have decided to leave; otherwise Chapter 13 can usually buy you much more time and give other big advantages.

The filing of either kind…

Utah Bankruptcy Sense: Have You Committed Fraud?

You may or may not be able to write off debts “for fraud or defalcation while acting in a fiduciary capacity.”    Here’s the sentence that we’re explaining today:

In a Chapter 7 or 13 bankruptcy case you may be challenged in your attempt to discharge (write off) a claim arising out of “fraud” or “defalcation” while acting in a fiduciary capacity.

“Fraud or Defalcation” Fraud is basically cheating someone. For a debtor to commit fraud requires him or her to 1) make a statement or representation, 2) which the debtor knows at the time is false and 3) makes it…