Archive for August, 2015

Mistakes to Avoid in Utah: Paying a Favored Creditor Before Filing Bankruptcy

Doing what you believe is the right thing can backfire, if you pay a special creditor before you file bankruptcy.   “Preference” Payments Bankruptcy law focuses for most purposes on what you own and who you owe at the moment your bankruptcy case is filed. But there are some limited yet potentially dangerous ways that the law can look into the past. “Preference” payments are one example. Here’s what the law says. If during the one year before you file a bankruptcy case, you pay one creditor more than you are paying at that time to your other creditors, then after

Mistakes to Avoid in Utah: Selling or Borrowing against Protected Assets

To get a real, fresh financial start, keep the assets you need.

 

Getting the Most Out of Your Bankruptcy

When you’re considering bankruptcy your mind is likely mostly on how to deal with your debts. You’re focused on getting a handle on the negative side of your balance sheet. But getting a financial fresh start also means protecting your assets—the positive side of your balance sheet. You can get much more benefit out of bankruptcy by not selling, using up, or borrowing against what you own BEFORE filing your bankruptcy case.

It’s certainly understandable that you might sell some …

Key Mistakes You Can Avoid When Considering Bankruptcy

Decisions you make that seem sensible at the time can end up not being in your best interest. Here is what you should look out for.  

 

Giving Our Clients Good News

As bankruptcy attorneys, we chose this kind of law to work in because we really want to help people. We have the privilege of listening to people’s tough stories and then giving them good news about how they can greatly improve their lives. We show how they can now get immediate relief from their debts, create a workable plan to save their home, or a great way …

Making Sense of Utah Bankruptcy: Chapter 7 or Chapter 13 and Your Utah Home?

Although either kind of bankruptcy will stop an approaching Utah foreclosure, which one should you choose?

 

Today’s blog post is summarized by this sentence:

Generally, file a Chapter 7 “straight bankruptcy” if it buys you enough time, and otherwise file a Chapter 13 “adjustment of debts” if you need  more time, but like so much in life, it really depends on all your circumstances, with some examples of when Chapter 7 would be appropriate and a list of special advantages that Chapter 13 can get you.

The Simplistic Guideline

If you are behind on your mortgage payments, …

Making Sense of Bankruptcy in Utah: Preventing Your Home from Being Foreclosed

Either kind of consumer bankruptcy–Chapter 7 or 13–will stop a foreclosure sale.

 

Here’s a one-sentence summary of today’s blog post:

Bankruptcy’s “automatic stay” will stop a foreclosure, forcing your mortgage lender’s cooperation, but in the rare event your lender unintentionally or purposely proceeds with the foreclosure sale it will be ineffective and your home will still be yours, whether you file a Chapter 7 or Chapter 13 case.

The “Automatic Stay” Prevents a Home Foreclosure

In our last blog post a couple of days ago we described the “automatic stay” as the immediate stopping of virtually …

Making Sense of Bankruptcy in Utah: Exceptions to the Protections of the “Automatic Stay”

Although just about all the ways that creditors can try to collect debts are immediately stopped when you file bankruptcy, there are some crucial exceptions. 

 

Here’s a one-sentence summary of today’s blog post:

The “automatic stay” gives you crucial protection from creditor collections as soon as your bankruptcy case is filed, with some limited exceptions in 1) criminal matters, 2) certain domestic relations (family court) procedures, 3) child and spousal support obligations and procedures, and 4) certain income and business tax collection.

The “Automatic Stay”

The immediate stopping of collections—called the “automatic stay”—is one of the most …

Making Sense of Bankruptcy in Utah: 5 Additional Ways Chapter 13 Saves Your Home

Here are 5 more tools that Chapter 13 gives you to solve particular challenge to keeping your home.

 

Here’s a summary of today’s blog post:

Adding to the 5 tools in our last blog post, today’s 5 include: 6) protecting your home equity if it’s greater than the homestead exemption, 7) giving you much more time to live in your home before selling it, 8) dealing effectively with child/spousal support liens against your home, 9) resolving an income tax lien on dischargeable income taxes, and 10) preventing foreclosure from overdue property taxes.

6. Avoid a Chapter 7

Making Sense of Bankruptcy in Utah: 5 Powerful Ways Chapter 13 Saves Your Home

Chapter 13 “adjustment of debts” provides a set of tools for saving your Utah home, each one solving a different problem, together allowing you to keep your home.

 

Here’s a summary of today’s blog post:

These 5 tools include: 1) being able to catch up on your mortgage arrearage flexibly, 2) “striping” your second (or third) mortgage off your home title, 3) preventing the recording of income tax liens on your home, 4) satisfying already recorded tax liens inexpensively and safely, and 5) slashing other debt obligations so that you can afford to pay debts …

Making Sense of Bankruptcy in Utah: State Property Exemptions in Federal Bankruptcy

Since the U.S. Constitution makes bankruptcy a federal procedure, how is it that the amount of assets you can protect is different in Utah from other states?

 

The sentence we’re explaining today is:

The Constitution gives Congress power to make “uniform Laws” on bankruptcy, yet for much of our history it has had trouble doing so in part because of competition between states’ vs. federal powers, which eventually resulted in a compromise allowing each state to require debtors filing bankruptcy to use that state’s set of property exemptions instead of the federal one.

The Power to “Establish… Uniform Laws on the

Making Sense of Bankruptcy in Utah: Qualifying for Chapter 13

Chapter 13 “adjustment of debts” in Utah gives you extraordinary advantages over creditors, especially over certain kinds of creditors.  

 

Here's the sentence we're exploring today:

You can file a Chapter 13 case if 1) you are “an individual,” 2) you have “regular income,” and 3) the amount of your debts does not exceed the legal limits.

Chapter 13

Filing a Chapter 13 case gives you extraordinary power over particular kinds of creditors. Here’s a sampling of what it can do:

  • You may qualify for a vehicle loan cramdown, enabling you to significantly lower your monthly