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…

Protection From Your Co-Signer in Utah

If  you need protection from a co-signor in Utah, bankruptcy will work.     A friend or relative may have helped you earlier by co-signing a debt for you. But now you find yourself needing relief from all or most of your debts through either a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts.” So what happens to your co-signed debt? And what happens to whatever responsibility you may feel towards your co-signer? In the last two blog posts we explained how either a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts” may help you…

Protecting Your Utah Co-Signer Better

The “co-debtor” stay, available in a Utah Chapter 13, is a creative tool for protecting your co-signer from being forced to pay your debt.   The last blog post was about filing a Chapter 7 “straight bankruptcy” case to “discharge” (legally write off) all or most of your other debts so that you could better afford to pay your co-signed debt. Today we get into how a Chapter 13 “adjustment of debts” gives you much more time to pay a co-signed debt if Chapter 7 doesn’t free up enough money to let you do so. And if you don’t want to…

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 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 Utah Bankruptcy: How Filing a Chapter 7 or 13 Case Stops Creditors’ Actions against You

Federal bankruptcy laws override Utah collection laws, protecting you and your assets from debt collection.   In this “Making Sense” series, we’re explaining bankruptcy through individual sentences about each of its important concepts. Today’s sentence:

Filing a consumer bankruptcy case immediately stops and then prevents almost all actions by creditors against you personally or against your income and assets.

These word and phrases in bold are each explained in the following sections. Immediately Stops Creditor Actions Creditors are stopped from taking any action to collect on their debts instantaneously at the filing of your bankruptcy case. This legal freeze against…

Utah’s New Year Resolution #10: Resolve a Business or Personal Lawsuit through Bankruptcy

If you or your business is stuck in litigation that is sucking you dry financially and emotionally, bankruptcy may be your best way out.   Getting Stuck in Litigation You may not have been a candidate for filing bankruptcy when, many months or even a year or two ago you or your business got sued. Or maybe you did the suing yourself to try to correct a wrong that was done to you, and bankruptcy might have been the furthest thing from your mind at the time. But whether you are the plaintiff or the defendant in this lawsuit, things aren’t…

Utah’s New Year Resolution #6: Stop or Prevent Creditor Lawsuits and Judgments

If you’ve been sued by one or more creditors and they have a judgment, you can stop them from garnishing your paycheck.   Lawsuits When you get sued by a creditor, you have a certain amount of time to respond to the lawsuit after you receive the “summons and complaint.” By responding we mean formally filing a document in the court where the lawsuit was filed, usually called an “answer,” stating which allegations in the complaint you agree with and which you deny and disagree with. If you respond on time, the case goes through a process of “discovery”: the facts…

Crucial Question: How Can I Protect my Cache Valley Co-Signer Better in a Chapter 13 “Adjustment of Debts” Case?

If you have a co-signer in the Cache Valley you want to protect, the “co-debtor” stay is a unique and powerful tool.    The Limits of Chapter 7 Our last blog post was about helping your co-signer under Chapter 7. You can prevent your co-signer from having to pay the co-signed debt by filing a Chapter 7 “straight bankruptcy” to discharge (legally write off) all your debts and then paying the co-signed debt. Once you have no other debts, or only a couple of them, that may improve your financial situation enough so that you could afford to make payments on…