Archive for June, 2016

Prevent a Unsecured Debt from Turning into a Secured Debt

A creditor gains serious leverage against you when it converts unsecured debt into a secured one. Filing Chapter 13 blocks that effectively.

Our last blog post described ways that the “automatic stay”—your protection from creditors’ collection actions—is so much more powerful in a Chapter 13 “adjustment of debts” case than in a Chapter 7 “straight bankruptcy.”

One way that this Chapter 13 protection from creditors is better is simply that it lasts much, much longer than under Chapter 7. This benefit is also related to today’s topic, how Chapter 13 can permanently stop unsecured creditors from turning their debts into…

Handle Your Secured Debts in Utah through Chapter 13

Chapter 7 gives you advantages with secured debts. But Chapter 13 can be much better.  Starting with a much stronger “automatic stay.”

  The last blog post explained how filing a Chapter 7 “straight bankruptcy” can:

1) temporarily or permanently stop your secured creditors from taking your property in which they have a lien;

2) prevent creditors with an unsecured debts from turning it into secured debts;

3) help you keep the property which has a creditor’s lien; and

4) if you want, enable you to surrender the collateral to the creditor without owing anything more on the debt thereafter.


Use Chapter 7 to Get Power over Your Secured Debts

Through bankruptcy: stop repossession and foreclosure, unsecured debts turning into secured debts, keep or surrender collateral as you wish.

Our last blog post a couple days was about secured debts. We explained that for a debt to be legally secured against something you own the creditor must go through certain steps to accomplish that, or else it won’t be secured. We showed how you could contractually enter into a secured debt voluntarily. But our blog post also showed that a creditor can turn its unsecured debt into a secured one by suing you or using other means of involuntarily imposing…

Your Secured Debts

A creditor with a secured debt has a lien on something you own. That lien may or may not be voluntary; it may or may not actually exist.

  The last couple months we have been discussing your bankruptcy options with debts secured by your vehicle, by your home, and by investment or business real estate. You can have debts secured by many other kinds of security—furniture and appliances, other personal property you buy or else had owned beforehand, business equipment and inventory, personal possessions that are subject to an income tax or judgment lien. These are just some of…

Bankruptcy Help for Your Business and Investment Real Estate

Chapter 13 can help you temporarily or permanently hold onto the equity and income in your Utah business and investment real estate.

  If you own business and investment real estate, filing a Chapter 7 “straight bankruptcy” would likely result in you losing control of what happens to that real estate. In our last blog post we showed how filing a Chapter 13 “adjustment of debts” case could give you more control over that. Often you have more control over whether the property is sold or retained, whether undesirable real estate can be surrendered to its mortgage holder, and the…

Selling Commercial Utah Real Estate under Chapter 13

Chapter 13 can be an effective way to retain or dispense with commercial Utah real estate.

  Our last blog was about selling real estate that is not your home within a Chapter 13 “adjustment of debts” case. We showed how this would give you more control over the timing and other important circumstances of the sale than if you just surrendered the real estate through a Chapter 7 “straight bankruptcy.”

But Chapter 13 may provide other benefits to consider.

Some of those benefits are related to the real estate itself. We’ll cover those today and in our next blog post.…

Selling Utah Non-Home Real Estate under Chapter 13

Chapter 13 is often a better way to sell real estate, especially if it has some equity and you want more control over the sale.

  Our last blog was about letting go of real estate that is not your home through a Chapter 7 “straight bankruptcy.” We showed how you can escape debts related to the property. We also showed how you could possibly even have your “priority” debts paid by the Chapter 7 trustee out of any proceeds of the sale of that property.

But Chapter 7 provides limited help. It’s appropriate for certain scenarios, generally more straightforward ones.…

Surrendering Utah Real Estate Other than Your Home

Chapter 7 writes off your mortgage debt and likely some other debts against that real estate. It may pay your “priority” debts, too.  

If you own real estate that is NOT your home, and you’re considering bankruptcy, there’s a good chance that real estate is part of what’s dragging you down financially.

Maybe you made an investment that turned sour. Or the property is tied in somehow with a business that did not succeed. Or you may even have gotten the real estate by inheritance or divorce but it’s more of a burden than a benefit because of the debts…

Keeping Utah Real Estate Other Than Your Home

Whether you can keep your Utah real estate in bankruptcy depends first on whether it has any equity and whether that equity is “exempt.”                                        

Most people thinking about filing bankruptcy either don’t have any real estate or if they do it’s their home. But if you own real estate other than your home you’re really not that unusual. You may have property you bought as an investment or as part of operating a business. Or you may have received it in an inheritance or through divorce. You’re in financial trouble and need help, but if you go through bankruptcy you’d…

Child or Spousal Support Lien on Your Utah Home

If you are behind on your child or spousal support payments Chapter 7 provides very limited help, but Chapter 13 provides much more.


Child and Spousal Support—A Very Special Debt

If you are behind on child or spousal support then you owe a debt that is treated differently both outside and inside bankruptcy.

Before you file bankruptcy, your ex-spouse and support enforcement agencies have very aggressive tools they can use against you, your income, and your assets to try to make you catch up on unpaid support.

If you own a home, those tools include a lien that is very…