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.
Chapter 7 Bankruptcies are available to individuals, married couples, sole proprietorships, partnerships, and corporations. Debtors are required to attend a meeting of creditors approximately one month after a case is filed.
The process for this type of bankruptcy usually takes about three to five months. Upon completion, the debtor’s includable debts are eliminated or discharged, meaning that the debtor no longer owes on those debts after the bankruptcy. 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.
The following is a list of the property exempt in a Chapter 7 Bankruptcy:
|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)|
|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|
Most debts are dischargeable 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 dischargeable, taxes, child support, student loans, criminal fines, debts not listed in the bankruptcy petition.
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.