Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is a process that entitles you to a fresh financial start. In a Utah Chapter 7 bankruptcy, individuals can wipe out many types of unsecured debt. Unsecured debt is debt that you do not have to put up collateral for, such as a debt incurred from a credit card, or medical bills.

The process for this type of bankruptcy usually takes about three to five months. Before you can file for a Chapter 7, you must go through credit counseling with an agency approved by the United States Trustee, and complete a debtor education course.

Assets:

The following is a list of the property exempt in a Chapter 7 Bankruptcy:

Description Amount
Real Property Primary Residence: $30,000 / $60,000Other: $5,000
Clothing, except furs and jewelry; refrigerator, freezer, stove, microwave oven, washer, dryer, and sewing machine; health aids; food to last 12 months; beds and bedding; carpets; artwork done by, or depicting, a family member; burial plot; personal injury recoveries for yourself or a person you depend upon; wrongful death recoveries for a person you depended upon No limit (reasonableness)
Motor Vehicle $3,000
Sofa, Chairs, and related furnishing for one household $1,000
Dining and kitchen tables for one household $1,000
Animals, books, and musical instruments $1,000
Heirlooms or other items of sentimental value $1,000
Tools of Trade $5,000

Debts Discharged in a Chapter 7 Bankruptcy

Most debts are dischargable in a Chapter 7 bankruptcy, including medical bills, loans, credit cards, cash advances, and most judgments. However, there are some debts that may not be dischargable, taxes, child support, student loans, criminal fines, debts not listed in the bankruptcy petition.

How do I get Started?

The first step in determining whether filing bankruptcy is an appropriate option for you is to schedule a free consultation. We will go over your financial situation in detail and discuss the various options available.

To find out if you are eligible for bankruptcy relief in Utah or if you have any questions about the services we provide, contact us by Phone at (801) 432-8682 or tell us about more about your current debts problems via email.