Archive for July, 2015

Making Sense of Bankruptcy in Utah: The Basics

Bankruptcy empowers Utahns with options, including “straight bankruptcy vs. an “adjustment of debts.”

 

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Bankruptcy is a Constitutionally and legally valid option for addressing your debts in an honest and realistic way through (for consumers) two primary choices—Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts (and a couple possible others), within which you usually have some options about how to deal with particular creditors.

Bankruptcy Law

The U.S. Constitution, which was ratified 227 years ago as of this last June, specifically gave Congress the “Power… To establish… uniform Laws …

Making Sense of Bankruptcy in Utah: What’s “Debtor Education”?

While “credit counseling” is done shortly before filing bankruptcy, “debtor education” must be done shortly after. Or else your debts aren't discharged.

 

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“Debtor education” is not only a simple task but one that may even be helpful, one you must take care of on time or else you will not discharge your debts.

What is the So-Called “Debtor Education”?

During the 180 days BEFORE filing bankruptcy you must go through an easy “credit counseling” “briefing” in order to be able to file your case. (This “credit counseling” requirement was the …

Making Sense of Bankruptcy in Utah: What’s Credit Counseling?

This requirement is not at all a difficult one, but do it with the right timing.

 

Here's the sentence we're focusing on today: 

“Credit Counseling” is usually a simple task, one imposed with a questionable purpose; but in any event you must take care of it before you can file a personal bankruptcy case, just not too early.   

What is the So-Called “Credit Counseling”?

The U.S. Bankruptcy Code says that, during the 180-day period before filing an individual bankruptcy case, you must get “from an approved nonprofit budget and credit counseling agency” “an individual or group …

Making Sense of Utah Bankruptcy: Using a Petition Preparer

You’d never have a medical transcriptionist do surgery on you. You need a surgeon’s professional judgment and skill. Same with your Utah bankruptcy case.

 

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

A bankruptcy petition preparer is hired to do nothing but type your bankruptcy document, a route you may be tempted to go down 1) if you think you don’t need a lawyer, and 2) if you think you can’t possibly afford a lawyer anyway; but you do need one and likely you and your lawyer can figure out a reasonable way for you to pay for legal representation

Making Sense of Bankruptcy in Utah: Paying for Your Lawyer

Make your first prioirty to find a lawyer you can trust, as there are usually ways to pay for legal representation. 

 

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

Being able to afford the costs of filing bankruptcy involves 1) acknowledging that you need legal advice, 2) accepting the reality that you have a very serious financial situation 3) which you need help fixing, 4) you must also acknowledge that most other people find a way to pay for their bankruptcies, 5) that the free initial consultation meeting is a crucial first step in finding out both your legal options …

Making Sense of Bankruptcy in Utah: “Converting” from a Chapter 13 Case to a Chapter 7 One

The decision to file a Chapter 13 case may make more sense knowing that you can always change it into a Chapter 7 one if necessary.

 

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

If you file a Chapter 13 “adjustment of debts” case you can always “convert” it into a Chapter 7 “straight bankruptcy” one, eitherintentionally because of changed circumstances or because you couldn’t successfully complete the Chapter 13 payment plan.

Filing under Chapter 13

As we said in our last blog post, the focus of a Chapter 13 case is to pay some of your

Making Sense of Bankruptcy in Utah: “Converting” from Chapter 7 to 13

Being able to convert to a Chapter 13 case can be extremely helpful if the unexpected happens shortly after filing your Chapter 7 case. Here’s the sentence that we’re explaining today:

If you file a Chapter 7 ‘straight bankruptcy” case you can “convert” it into a Chapter 13 “adjustment of debts” one, either voluntarily because of changed circumstances or as a better alternative to your case being dismissed.

Filing under Chapter 7 When most consumers hear “bankruptcy” they are likely thinking of the Chapter 7 version.  It is often the quickest and easiest way to get relief from either all…

Making Sense of Bankruptcy: Debts That Are Not Discharged (Written off) in a Utah Chapter 7 Bankruptcy

Start by assuming that debts are written off in bankruptcy, while knowing that there are some important exceptions that may apply to you.    This is today’s sentence that we’re explaining:

Most debts that you want to discharge are discharged when you file a Chapter 7 “straight bankruptcy” case, because bankruptcy law explicitly says that all debts are discharged except for a list of specific kinds of debts that are not, which include 1) debts which ARE discharged unless the creditor objects and does so successfully, and 2) debts which are NOT discharged even without the creditor objecting

Making Sense of Bankruptcy: How Secured Debts in Utah are Treated in a Chapter 7 “Straight Bankruptcy”

Bankruptcy in Utah pays a lot of attention to and can help you deal with your secured debts in many favorable ways.   Here’s today’s sentence that we’re explaining to help you understand bankruptcy:

Filing a Chapter 7 case gives you some truly important benefits for dealing with your secured debts: protection from repossession of the collateral, writing off other debts so you can afford to pay the secured debt, excluding the secured debt from write-off through “reaffirmation,” payoff of the secured debt through “redemption,” and surrender of the collateral with write-off of any remaining …

Making Sense of Utah Bankruptcy: “Secured,” “Priority,” and “General Unsecured” Debts

Bankruptcy deals with debts. The key to understanding the Utah Chapter 7 and Chapter 13 options is understanding the three main kinds of debts.   Here’s the sentence that we’re exploring today:

Bankruptcy generally treats debts the same as long as they are in the same legal category, so understanding how Chapter 7 and Chapter 13 treat your debts begins with understanding the three main debt categories: secured, priority, and general unsecured.

Fairness to Creditors Means Equal Treatment Bankruptcy makes a lot more sense if you know which of the three main categories of debts each…