Bankruptcy - Frequently Asked Questions
We know filing for bankruptcy can be an overwhelming experience. Thankfully, you can turn to the experts at Rulon T. Burton for help. We have helped file 20,000 bankruptcy cases in Utah throughout four decades of business. You’re in good hands when you turn to our team of professionals.
Get answers to frequently asked questions regarding filing for bankruptcy in Utah; contact us for a free consultation when you’re ready to get started.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy can be filed by an individual with or without assets to pay outstanding debts. Also known as “liquidation bankruptcy,” once the value of the assets, if any, has been applied toward debt, any remaining debt is discharged.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows you to retain your assets and set up a partial repayment plan for debt. Payments are made for up to five years, after which time the debt is discharged.
How Much Does it Cost to File for Bankruptcy?
Court filing fee:
- $313 Chapter 7
- $338 Chapter 13
Attorney fees vary. Contact Rulon T. Burton today for a free consultation.
How Quickly Can I File for Bankruptcy and Get Debt Relief?
If you have all the necessary paperwork prepared when you meet with us, we can usually get your case filed within 24 business hours.
What Do I Need to File for Bankruptcy in Utah?
- A comprehensive list of all debts
- A comprehensive list of all assets
- Pay stubs for the last seven months
- Tax returns for the last two years
Which Type of Bankruptcy Should I File?
There are different types of bankruptcies depending on your situation. If you have limited income, Chapter 7 may be right for you. If consolidating your debt and establishing a repayment plan gets you on the path to a fresh start, opt for Chapter 13. To figure out which is best for you, look over our bankruptcy services and get in touch for a free consultation regarding your bankruptcy case today.
How Does Bankruptcy Affect My Credit?
A bankruptcy filing remains on your credit report for up to ten years. However, credit scores quite often rebound up to 100 points the first year after filing. It is like establishing your credit again and just takes a little time.
Will Someone Repossess My Assets if I File for Bankruptcy?
Once you’ve filed for bankruptcy, no one will come to your home or business and repossess your assets without your knowledge. In the event assets are liquidated to help pay off debt, you will be involved in every step of the process.
What Assets Can I Keep When I File for Bankruptcy?
If you file for Chapter 13 bankruptcy, you will keep your assets. If you file for Chapter 7 bankruptcy, the assets you can keep are known as bankruptcy exemptions. Depending on the value of the assets, such as your car, primary residence, etc… you could retain them even in a liquidation bankruptcy. Some assets that can be exempt from bankruptcy include:
- Alimony you’re collecting
- Child support you’re collecting
- Retirement accounts
- Social security benefits
- Unemployment benefits
- Veteran’s benefits
Let’s talk today about what bankruptcy exemptions might apply in your case.
What is Considered Non-Exempt Property?
- Secondary residences (real estate you own but don’t live in)
- Secondary vehicles
- Recreational vehicles (ATVs, boats, campers, etc…)
- Valuable jewelry (there are exceptions)
- Family heirlooms (limited protections)
- Musical instruments (limited protections)
- Valuable electronics
- Valuable art (that you haven’t made yourself)
What Debts Are Discharged When I File for Bankruptcy?
In Chapter 7 bankruptcy, debts that cannot be discharged include:
- Alimony
- Child support
- Court fees
- Student loans
In Chapter 13 bankruptcy, debts that can be discharged include certain taxes; there is, however, a total debt limit.
What Is Secured Debt vs Unsecured Debt?
A secured debt is one that was procured with collateral. This includes a mortgage or a car loan.
Unsecured debt is one that was procured without collateral. This includes credit cards, medical bills, or utility bills.
What is a Bankruptcy Trustee?
This is an individual appointed to help insure creditors are receiving what they are entitled to.. A trustee is not the same as a bankruptcy lawyer. The trustee protects the best interests of the creditors in the case and ensures the debtor complies with the bankruptcy laws.
What is a Means Test?
The means test is used to ensure that the debtor qualifies for bankruptcy. By calculating a debtor’s income and comparing it to the debt, the Bankruptcy Court can determine if the person is eligible for Chapter 7 or Chapter 13 bankruptcy.
Aspects of the means test to be aware of include:
- Whether your income falls below the Chapter 7 limit (the median income for a family of your size in Utah).
- Comparison of income vs expenses to determine if you have the means to pay off debt.
Don’t See Your Question Here? Contact Us Today
Employ the legal services of Rulon T. Burton to help you navigate bankruptcy in Utah.