Assuming you are a Utah consumer who needs serious relief from your creditors, when should you do a Chapter 7 bankruptcy instead of a Chapter 13 one?
Here’s the sentence we’re explaining today:
If you qualify under the means test, consider filing a Chapter 7 case when you don’t need the extra help of a Chapter 13 case to protect your assets, deal with divorce debts, pay taxes you can’t discharge, catch up on your home mortgage(s) or property taxes, and/or reduce payments on your vehicle loan.
Qualifying under the Means Test
To file a…
Besides providing a unique and powerful way to catch up on support arrearage, Chapter 13 can discharge other debts from your Utah divorce.
Here’s today’s sentence we’re explaining:
If you owe financial obligations from your divorce other than your child or spousal support, Chapter 13 can discharge them.
Divorce Financial Obligations
Bankruptcy deals with debts. In certain very specific and often crucial ways it can help you with debts arising out of your divorce. But it does not get into the non-financial obligations like child custody and visitation and other parenting rights issues, or other non-financial disputes with your…