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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 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…

Making Sense of Bankruptcy in Utah: Avoid Dangerous “Preference” Payments

Be careful about trying to be nice and paying back relatives and friends in order to keep them out of your Utah bankruptcy case.   Here’s the sentence that we’re exploring today:

You may be tempted to pay certain special creditors before filing bankruptcy—such as relatives or friends, but if you do so (within a year before filing) under certain circumstances they may need to pay back what you paid, not to you but to your other creditors, confounding your and their intentions, even if those intentions were good; so avoid paying relatives, friends, or anybody else

Making Sense of Utah Bankruptcy: Losing the Crucial “Automatic Stay” through Multiple Bankruptcy Filings

A law designed to stop the “serial filing” of bankruptcy cases could render useless one of your most important weapons against creditors.   Here’s the sentence that we’re exploring today:

When filing bankruptcy there is almost no benefit more important than the “automatic stay” so the effect of losing it can be extremely harmful, and that can happen if you’ve had a prior bankruptcy case or cases dismissed within the last year, which could possibly happen even without you knowing.

The Crucial Automatic Stay  The “automatic stay” is the federal law which stops creditors from collecting from you…

Making Sense of Bankruptcy in Utah: Potential Concerns about Recent Sales, Transfers and Gifts

To discourage disposing of assets before bankruptcy, a Utah Trustee can potentially undo a prior transaction in order to benefit all creditors.   Here’s the sentence that we’re exploring today:

Because the bankruptcy process really cares about assets, if you sell, transfer or gift an asset during a certain period of time before filing bankruptcy, that transaction may be a “fraudulent transfer,” with the result that the bankruptcy trustee may “avoid” (undo) that transaction, whether there was or there was not anything fraudulent about it.

Bankruptcy is about fairness between debtors and creditors. Part of that fairness is…

Making Sense of Utah Bankruptcy: Filing without Your Spouse to Protect His or Her Assets

You may not need to file bankruptcy without your spouse to prevent her or her asset(s) being liquidated.   Here’s the sentence that we’re explaining today:

If you want to prevent your spouse’s separate assets from being potentially taken by a bankruptcy trustee, don’t take the risks of filing a bankruptcy case without your spouse without first finding out if 1) those assets are already protected by available property exemptions, 2) can be protected through a joint Chapter 13 filing or 3) through smart pre-bankruptcy planning.

In the right circumstances it’s sensible for a married person to file…