Author Archive

Chapter 7 vs. Chapter 13–“Cramdown” on Personal Property Collateral

How does Chapter 13 help you keep (or surrender) collateral on a debt?   Last time we explained the crucial difference between secured and unsecured debts, and focused particularly on “purchase money” secured debts. That led to laying out the advantages Chapter 7 “straight bankruptcy” gives you when dealing with something you bought that is now collateral on the debt you owe. Today we show the often even greater advantages that come under Chapter 13 “adjustment of debts” with this kind of collateral. Creditor Leverage under Chapter 7 We showed last time how under Chapter 7 a secured creditor can require…

Chapter 7 vs. Chapter 13–Personal Property as Purchased Collateral

How does bankruptcy treat something you bought—furniture, an appliance, or some electronics—when that thing is collateral on a debt?   In our last couple blog posts we compared how Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” each deal with vehicles that are collateral on vehicle loans. Today let’s look at other personal property that you buy on credit where the creditor has the right to repossess the stuff if you don’t pay the debt. Secured and Unsecured Debts We first need to determine whether the creditor really has a right to repossess if you don’t pay. That’s not…

Chapter 7 vs. Chapter 13–More about Vehicle Loans

A Chapter 13 solution for keeping a vehicle if you’re behind on its payments.   In our last blog posts we showed how Chapter 7 “straight bankruptcy” can make it possible to keep your vehicle even if you were behind on your payments. We showed how this can work in practice through an example. But hanging onto a car through Chapter 7 when you’re behind only works in limited circumstances. In a Chapter 7 case you would very likely need to get current on the loan quite quickly—within about 30 to 60 days—or there’s a good chance your lender wouldn’t…

Mistakes to Avoid in Utah–Selling Your Home Because of Owing Income Taxes

If you owe a lot of income taxes and a tax lien has been recorded on your home, it’s understandable to consider selling your home.   This series of blog posts is about how to make better decisions about selling your home when under pressure from your creditors. Some of the biggest pressure can come from the IRS and the state taxing authorities. There are some persistent misconceptions are about how bankruptcy can and can’t help with income taxes and income tax liens. If You Have Income Tax Debt If you owe back income taxes, especially if you owe for a…

Mistakes to Avoid in Utah–Selling Your Home to Pay Your Ex-Spouse

You may be pleasantly surprised if, before selling your home to pay off your ex-spouse, you first find out your legal options.   The Need to Pay off Your Ex-Spouse Divorce is so often so traumatic. All kinds of emotions can cloud your judgment at the time, and can cloud your memory afterwards. This is true even in a comparatively friendly divorce, and that much more so in a contentious one. So it’s no surprise that after the divorce is over you’re not really clear what legal obligations you have arising from the divorce and what you can do about them.…

Mistakes to Avoid in Utah: Prevent Judgment Liens against Your Home

If a creditor sues you, don’t let it get a judgment against you. File bankruptcy before that happens.   It’s All Too Easy for a Creditor to Get a Judgment against You If you are seriously behind on payments to a creditor, you can end up with a court judgment against you and a judgment lien against your home even if you act with what seems like common sense. Let’s say you’ve fallen behind on a debt because you simply didn’t have the money to pay it. You get some papers in the mail or handed to you saying that you…

Mistakes to Avoid in Utah: Surrendering Your Vehicle or Getting it Repossessed

Bankruptcy can save your vehicle in surprising ways. Besides wiping out other debts so that you can afford it, you may get to pay less for it.   The Pleasant Surprises of Bankruptcy Most of the time people go to see a bankruptcy attorney they are pleasantly surprised by what options are available to them. An important reason to see a bankruptcy attorney sooner rather than later is because then you will more likely be able to take advantage of those options. That’s very much true when it comes to your vehicle loan. Surrender or Repossession Is Usually Very Expensive Whether…

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

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 Bankruptcy in Utah: The Choice

As Utah Chapter 7 “straight bankruptcy” and Chapter 13 “adjustment of debts” are quite different,  be open-minded about which is better.  

 

Here’s the sentence we're explaining today:

Given how starkly different Chapter 7 is from Chapter 13, choosing between them can be less straightforward than you thinksometimes it IS very obvious which will work better for you, but sometimes the “other” option will help in ways you totally didn’t expect, as an example illustrates—so keep an open mind as you have your initial meeting with your attorney.

Chapter 7 and Chapter 13